HomeContact Site map   Google    www    iipm think tank
   
   
Home Scrutiny Publications Under Cover Mus'ings  
 

Home > Scrutiny > Shoot down the rhetoric

  
   
     
   Case Studies  
       
  Marketing    
  Human Resource    
  Information Technology    
  Finance    
  Strategy    
       
 
     
   Industries  
       
  Steel    
  Glass    
  Banking    
  Prophylactic    
  Auto    
  Hospitality    
  Energy    
       
 
     
   Other links  
       
  IIPM    
  Planman Consulting    
  Planman Marcom    
  Planman Technologies    
  Daily Indian Media    
  Planman Financial    
  4P's Business and Marketing    
  Business and Economy    
  The Daily Indian    
  The Sunday Indian    
  Arindam Chaudhuri    
  GIDF    
       
 
  
         
Scrutiny
  
Shoot down the rhetoric
It is possible to diplomatically manage the Chinese reaction
10/11/2011

A week back, ONGC Videsh Limited (OVL) and PeroVietnam in the presence of Indian Prime Minister Manmohan Singh and Vietnamese President Truong Tan Sang, entered into a three year long treaty on cooperation in the field of oil and gas.

A seething China feels that this alliance has the potential to disrupt peace in the Asia-Pacific region. China is striving for sovereignty in the area and they won’t feel comfortable with a strong Indian presence over there. As a matter of fact, China diplomatically pressurised British Petroleum to abandon their operation in the region. Interestingly, China had not raised any formal objection over the Indo –Vietnamese co-operation in oil and gas until last year when they privately conveyed to their US counterparts that they see South China Sea as their ‘core interest’. For the uninitiated, the cooperation in the field of oil and gas in the region between India and Vietnam dates back to May 1988 with the signing of a Production Sharing Contract between Hydrocarbon India Ltd (now ONGC Videsh Ltd.) and PetroVietnam.

The situation is like a toss up for Vietnam. Scrapping the oil extraction deal with India would put contracts with oil companies from several other countries at risk & also negatively impact its relations with India, which has projected $7 billion in bilateral trade. It would also be tough to resist China, their major trading partner, particularly considering the economic sweetener it has promised in addition to strengthening military co-operation. As far as India is concerned, tapping on China’s troubled neighbourhood is seen as a valuable vantage point to counter the ‘String of pearls’ strategy or a firm attempt to emerge as a logical counterweight to China in Asia. But it’s best for India to tow the official line on energy security and avoid getting into a war of words with Chinese government mouthpieces. And also keep a watch for the next Chinese move!

By:-
Back

  
 
 
       
Home | Scrutiny | Publications | About us | Contact us
Copyright @2010 iipm think tank. All rights reserved.