Best of the Week
Most Popular
1. Climate Change Mass Extinction - Birds, Bees and Bugs: Going Going Gone - Richard_Mills
2.A Purrrfect Gold Price Setup! - Peter_Degraaf
3.Who Finances America's Borrowing? Recession Indicator for Independent Thinkers Part 2 - F_F_Wiley
4.America’s One-sided Domestic Financial War - Raymond_Matison
5.Gold Price Summer Doldrums - Zeal_LLC
6.Two Key Events Will Unleash Gold - Jim_Willie_CB
7.Billionaire Schools Teacher in NAFTA Trade Talks - Richard_Mills
8.Get Out Of Crypto Cannabis Bubble Before It Pops and Move Into Bargain Basement Miners - Jeb_Handwerger
9.Stock Market Could Pullback for 1-2 weeks, But Medium Term Bullish - Troy_Bombardia
10.G7 Chaos, Central Banks and US Fed Will Drive Stock Prices This Week - Chris_Vermeulen
Last 7 days
The Death of the US Real Estate Dream - 22nd Jul 18
China is Now Officially at War With the US and Japan - 22nd Jul 18
You Buy the Fear in Gold - 22nd Jul 18
Trumponomics Stock Market 2018 - The Manchurian President (1/2) - 21st Jul 18
The Death of Japan's Real Estate Dream - 21st Jul 18
SMIGGLE Amazing Mega Shopping Haul, Pencil Cases, Smigglets and Giant Back Packs! - 21st Jul 18
Cayton Bay Beach Caravan Park Holiday - What's it Like? - 21st Jul 18
Gold Stocks Investment Wanes - 20th Jul 18
Diversifying Your Stock Investing Strategies is Smart Investing - 20th Jul 18
Custom Global Stock Market Indexes May Be Sounding Alarms - 20th Jul 18
S&P 500 Just 2% Below Record High, But There's More Stock Market Uncertainty - 19th Jul 18
Stock Market Technical Picture - 19th Jul 18
Gold Market Signal vs. Noise - 19th Jul 18
Don’t Get Too Bullish on Gold - 19th Jul 18
Bitcoin Price Rallies to Upper Channel – What Next? - 19th Jul 18
Trump Manchurian President Embarrasses Putin By Farcically Blowing his Russian Agent Cover - 19th Jul 18
The Fonzie–Ponzi Theory of Government Debt: An Update - 19th Jul 18
Will the Fed’s Interest Rate Tightening Trigger Another Financial Crisis? - 18th Jul 18
Stock Market Investor “Buy the Dip” Mentality is Still Strong, Which is Bullish for Stocks - 18th Jul 18
Stock Market Longer-Term Charts Show Incredible Potential - 18th Jul 18
A Better Yield Curve for Predicting the Stock Market is Bullish - 18th Jul 18
U.S. Stock Market Cycles Update - 18th Jul 18
Cayton Bay Hoseasons Caravan Park Holiday Summer 2018 Review - 18th Jul 18
What Did Crude Oil - Platinum Link Tell Us Last Week? - 17th Jul 18
Gold And The Elusive Chase For Profits - 17th Jul 18
Crude Oil May Not Find Support Above $60 This Time - 17th Jul 18
How Crazy It Is to Short Gold with RSI Close to 30 - 16th Jul 18
Markets Pay Attention Moment - China’s Bubble Economy Ripe for Bursting - 16th Jul 18
Stock Market Uptrend Continues, But... - 16th Jul 18
Emerging Markets Could Be Starting A Relief Rally - 16th Jul 18
(Only) a Near-term Stock Market Top? - 16th Jul 18
Trump Fee-Fi-Foe-Fum Declares European Union America's Enemy! - 16th Jul 18

Market Oracle FREE Newsletter

5 "Tells" that the Stock Markets Are About to Reverse

Joint Chinese-Indian Oil Tanker Patrols Possible?

Politics / Crude Oil Aug 19, 2011 - 01:27 AM GMT

By: OilPrice_Com

Politics Aside from cost, the major problem for oil importing countries is getting the purchases safely home. Essentially, there are only two options - pipelines and maritime transport.

Both are vulnerable to attack and this is increasingly preoccupying Chinese leaders, especially as, according to China's Ministry of Industry and Information Technology, China's dependence on imported oil rose to 55.2 percent for the first five months of 2011, surging to 9.61 million barrels per day.


What to do to secure uninterrupted supplies of 'black gold?"

Negotiate.

In a development with significant implications for the Pentagon's professed "full spectrum dominance," (i.e., quash all military opposition) the Hindustan Times reported that Beijing is cautiously sounding out India about the possibility of joint naval patrols in the Indian Ocean to safeguard tanker traffic.

An official of China's Development Research Centre under the State Council, speaking on condition of anonymity, said, "The Indian government should take the initiative to propose a cooperation mechanism on sea-lanes in the Indian Ocean.'' Realizing the contentiousness of such a proposal with immense understatement the bureaucrat added, "China cannot initiate such a proposal. The U.S. and Japan will not support China's move" before concluding, China has to protect its ships on its own. The US is not an ally. India is not an ally."

Actually, China has had an intermittent naval presence in the Indian Ocean since December 2008, when it sent three warships to liaise with the Combined Task Force 150 (CTF 150), set up after the 11 September attacks to patrol the Arabian Sea and the coast of Africa to combat terrorism. Under command of the fleet's flagship DDG-169 Wuhuan destroyer, the task force of two destroyers and one supply ship arrived in waters off the Somali coast in order to provide security for Chinese merchantmen, as of the 1,265 Chinese merchant ships transiting the Gulf of Aden in 2009, seven were attacked by pirates.

Indo-Chinese naval cooperation is not as far-fetched an idea as it might appear on the surface. Nine months after the Chinese flotilla began operations off Somalia Indian National Security Advisor Shiv Shankar Menon said, "Is it not time that we began a discussion among concerned states of a maritime system minimizing the risks of interstate conflict and neutralizing threats from pirates, smugglers, terrorists," calling for discussions among "Asian states" and other powers on the issue.

Many in China think that the time has come for a more assertive Chinese maritime presence. Li Li, a strategist in the South and South East Asian and Oceanic Studies Institute of the China Institute of Contemporary International Relations observed, "China has not announced its Indian Ocean policy. It will take time. China's rising so fast. It is, more and more, in China's interests to protect our sea-lanes in the Indian Ocean,'' hardly surprising, as China now receives 70 percent of its petroleum imports via the Indian Ocean.

Such a move will doubtless ring alarm bells in Washington, as except for the Somalia task force China's Navy has largely limited itself to the country's coastal waters. The Pentagon's perceptions of Chinese naval capacities are shifting dramatically however, as last week's announcement that the country's first aircraft carrier, the refurbished Soviet Varyag had begun sea trials. Once fully operational, the Chinese carrier should be able to carry up to 40 Sukhoi 33-derived J-15 naval air-superiority fighters and up to 20 rotary aircraft, including Ka-28 anti-submarine helicopters

While hardly a threat to the Pentagon's current 11 operational carrier task force groups, China's maritime accomplishment led U.S. Secretary of State spokeswoman Victoria Nuland to pontificate, "We welcome any explanation from China about why it needs this kind of equipment." Combined with China's overtures to India, no doubt Pentagon wargamers are going back to reread their well-thumbed copies of Mahan's Influence of Seapower upon History.

A number of practical concerns will impact a Sino-Indian naval alliance, should it ever come to pass. First and foremost, the countries are fierce economic rivals.

Secondly, in 1962 India and China fought a brief but bloody war in the Himalayas over a disputed frontier, the final delineation of which yet remains to be resolved.

And last but hardly least, China for many years has been a close ally of India's arch rival Pakistan, and has thrown millions of dollars into helping Islamabad develop its Gwadar port on the Arabian Sea.

Accordingly, while Beijing's trial balloon of nautical cooperation would represent a major regional geostrategic shift, for the moment it remains just that - a trial balloon.

Source: http://oilprice.com/Energy/Energy-General/Joint-Chinese-Indian-Oil-Tanker-Patrols-Possible.html

This article was written by Dr. John CK Daly for Oilprice.com who offer detailed analysis on Crude Oil, Geopolitics, Gold and most other commodities. They also provide free political and economic intelligence to help investors gain a greater understanding of world events and the impact they have on certain regions and sectors. Visit: http://www.oilprice.com

© 2011 Copyright OilPrice.com- All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Parth V
19 Aug 11, 11:51
China and India is the new alliance forming

Contrary to this articles views the Sino Indian border is very quiet. 1962 is a dead affair China only wants Tawang in Arunachal due to its Tibet connections. In 1971 India had a major altercation with USA and USS Enterprise. China and India are not major trade competitors as China is in manufacturing India in knowledge base industry. The US and England have monopolized banking and both China and India would like to end that (obviously). China's support of Pakistan is not a major issue as Pakistan too will drop out of its anti-India position. If culture is any indicator China and India will be allies in a giant Asian alliance. Note Indians and Chinese inter marry more in USA than with their European counterparts.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules