China’s state owned People’s Daily has warned India not to deploy 100,000 troops along its own border. It is an extraordinary threat. China is warning India against doing something within its own borders. It is also the height of impertinence for a nation which is frantically building infrastructure and roads along its Indian border, which is sending soldiers encroaching into the disputed areas between the two nations, and which is occupying areas in Kashmir with its troops in violation of the United Nations Resolution to interfere in the internal arrangements of a sovereign nation.

Does this bluster by Beijing betray some kind of panic?

This should be viewed in conjunction with the hysterical conduct of the Chinese Ambassador who recently asked an Indian journalist to shut up. Are Beijing’s nerves on edge? If so, why? It might just be possible that Beijing fears that the New Delhi worm may actually turn to pursue a policy suggested by this scribe in an open letter to the Prime Minister on October 13th. 

In that letter I wrote:

“India should start rapid de-escalation of trade with Beijing leading to a ban of all Chinese exports to India… All effort should be made to create alternate tie-ups with America and European Union to compensate losses suffered by blocking all Chinese exports… India’s economy driven by domestic savings can weather loss of trade with Beijing much better than the Chinese economy heavily dependent upon exports and foreign direct investments can. The time to strike is now… India must strengthen all its border areas by settling ex-servicemen and unemployed youth trained in infantry warfare equipped with small arms… Such a trained citizen army would render very difficult for any enemy to forcibly occupy Indian Territory… India must enhance its nuclear, missile and cyber technology to develop at the fastest rate possible a deterrent that would inhibit any global power.”

The latest news suggests that bad loans issued by China’s state owned banks are mounting. Need one recall that right now China’s dependence upon exports is crucial? Sixty percent of its urban population is employed by State Owned Enterprises (SOEs). These in turn survive on bad loans obtained from China’s government owned banks. The banks keep advancing bad loans to prevent the SOEs from collapsing. If the SOEs were to close down there could be massive urban unemployment resulting in chaos.
 
New Delhi has decided to deploy troops along its borders. Next, will it also start reducing imports from China? The time to act is now. Beijing is working overtime to rectify its economic policies to become less dependent upon exports.