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Will China's PLAN survive contact with the enemy?

The best laid PLANs of mice and men often go awry.

Welcome back to another effortpost by me generally on the developing arms race in East Asia, this time covering the People's Liberation Army Navy, hereafter referred to as the "PLAN", and its massive growth... and... mostly, well, its massive growth. What that means is mostly covered in other posts about how other countries are responding to it. The why is a bit difficult because, well, China is not well known for open debate, or open anything, really, which will turn up repeatedly.

  1. What you [might] need to know about South Korea's ludicrous arms buildup
  2. We shall fight on the seas and oceans, we shall fight with growing confidence and growing strength in the air, we shall defend our island, whatever the cost may be. We shall fight on the beaches.... uh, what do we do after that again?: The Perilous Defensive Position of Taiwan
  3. "You've hit another cargo ship? The Problems with the US Navy: Not all of them begin with "Seven" and end with "th Fleet"."
  4. Will China's PLAN survive contact with the enemy?
  5. Biden's New START and modern nuclear war
  6. First And Last Stand Of The Tin Can Navies [ASEAN + Australia and the smaller adversaries China may contend with]
  7. Boned: Problems in the US Air [and space!] Force
  8. --Unnamed-- effortpost on Japanese military matters, mostly about how weird the JSDF status is
  9. --Unnamed--effortpost on Indian military matters, and why they can't focus on China or buy anything that works
  10. --Unnamed--effortpost on the rest of the PLA, mostly the air force though
  11. --Unnamed--effortpost on the rest of the US Armed Forces, mostly talking about how the marines are changing and the Army's new love affair with INF-busting weapons
  12. Conclusion?

Glossary:
PLA = People's Liberation Army = the armed forces of the People's Republic of China, or China
PLAN = People's Liberation Army Navy = the naval forces of the PLA
PLANAF = People's Liberation Army Navy Air Force = the air force of the navy of the PLA
Ashm = Anti-ship missile, cruise missile unless specifically described as otherwise--there's only one anti-ship ballistic missile in existence and its efficacy and whether or not it functions is questionable
CIWS = close-in weapons system, like the Phalanx gun or Goalkeeper
VLS = vertical launch system for missiles
AEGIS = Aegis Combat System if described specifically in that context, a US naval warfare system, but we'll usually be talking about "Chinese AEGIS", which is a nomiker used by the Chinese media in particular comparing the Type 346 radar to the AN-SPY family, with which it shares numerous technical characteristics--but how comparable the "Chinese AEGIS" system is to what the US uses is a complete unknown.
SAM = Surface-to-air missile, in this case usually a S-300 derivative
First Island Chain = The islands, stretching from Malaysia, Singapore, Indonesia, the Philippines, Taiwan, and Japan, which keep China inside its littoral seas much as the GIUK [Greenland-Iceland-UK] gap has kept various continental powers out of the Atlantic.


Some PLAN equipment you might see described--the nomenclature is confusing and a relic of the cultural revolution, and as a result China now has more Types than the British.
Type 003 = China's new conventionally powered supercarriers, currently under construction
Type 002 = China's first truly "operational" carrier
Type 001 = China's first carrier, built on a Soviet hull purchased from Ukraine ostensibly to make a floating casino
Type 055 = Guided-missile cruiser, though generally called a destroyer it's probably more descriptively labeled a cruiser
Type 052D = Guided-missile destroyer using "Chinese AEGIS"
Type 052/051B/052B/052C = the gradual progression of evolving Chinese naval tech, largely built as practice/demo ships like the Type 001. Some of the earlier ones are steam-powered but by the Type 052C you have something almost as advanced as the Type 052D, albeit with turbine problems
Type 054A = the standard modern frigate of the PLAN
Type 053[anything] = old PLAN frigates
Type 096 = China's newest SSBN class, under construction
Type 094 = China's first functional SSBN class, very noisy
Type 092 = China's first "SSBN", believed to have never left port with an actual nuke on board
Type 095 = China's newest SSN class, under construction
Type 093 = China's current SSN class, noisy
Type 091 = China's first SSN class, dumb dumb dumb and is at a 1950s tech level
Type 039[A] = China's new SSK class
Kilo = China's older SSK class, imported from Russia
Sovremenny = China's first capable anti-air destroyers, imported from Russia


1. The Last Time A Rising Navy Challenged A Dominant Foe

The last time we've seen something like this was in the late 19th century. After the First World War shipbuilding was restricted by the landmark Washington Naval Treaty, one of the first great arms control treaties, and during the Cold War the Soviet Union never really had any hopes of surpassing American naval power. China, however, seems intent on replacing the US as the world's dominant naval power, or at least building a force that can stop the US Navy, even combined with the forces of Japan and other regional allies.

The nations in question, of course, in the last naval arms race, were the United Kingdom and a newly-unified Germany. Germany never reached the level of the UK, but seriously threatened it. Previously the UK had maintained a policy of having more ships than the next two largest fleets combined, but this was no longer possible, and the UK legitimately was fearful for its naval supremacy. It didn't last too long in the end--under a decade--and a resumption was foiled by first a world war and then the Washington Naval Treaty. The impact of the arms race, though, was massive. It set Germany and the UK at odds with each other, it resulted in a general buildup of warships pretty much everywhere [South America was, believe it or not, one of the biggest offenders there], established Germany for a time as the world's second naval power, having eclipsed both France and Russia and turning a small coastal defense navy into something that was able to defeat the Royal Navy itself, though never comprehensively enough to change the course of the first world war.

China dwells in a much different situation than Germany did at the turn of the last century, so we can only extend the analogy so far--substituting in Japan for the UK, India for Russia, and so on is possible but not, in my view, educational. However, we can see many of the same elements playing in here. China seems intent on replacing the US as a dominant power, or at least as regional hegemon--the ancient tributary system seems to lie fairly heavily on Chinese minds--and in order to do that, it must be able to have some degree of power projection and the capability to deny the US Navy access to areas within the first island chain. It remains to be seen, however, how successful that quest will be. Much as with the dreadnought battleships, I wouldn't be surprised if we never actually do find out if most of the shiny naval toys people have built actually work. But their mere existence shows the mutual hostility developing in the region and demonstrates the size of the Chinese threat.

Another lesson learned here is that China, like Germany, may not develop a naval force capable of defeating the US comprehensively, but only partially, and that one of the powers--in this case, China--might be pressured to strike first before the US Navy can close the gap. That ~2030 gap I talked about in my last post is, I think, an especially vulnerable point, because China may look at a degraded, but rejuvenating US Navy, then at their own capable forces, and decide to strike then in Taiwan and the South China Sea, only to back down when the US Navy again eclipses them. Whether or not that will happen, we will see--but I find it a very dangerous and perhaps likely possibility.

2. What the PLAN looked like 20 years ago

The PLAN has undergone an absolutely stunning evolution in the past two decades. In the Third Taiwan Strait Crisis the US could intimidate China with a pair of aircraft carrier strike groups and China could do pretty much nothing about it. Now the US is afraid of sending anything more than a destroyer through the strait.

Twenty years ago, the PLAN was a bit of a joke. Even Taiwan figured it could hold the seas against the PLAN. It consisted of a few tens of outdated coastal-defense frigates, some Soviet-era diesel-electric subs, and a large number of unsophisticated missile craft. The pride of the Chinese fleet were a handful of destroyers assembled using cobbled-together Western technology--copied French missiles, American gas turbines, the lot. According to American accounts at the time, the instructions for the equipment hadn't even been translated. The most advanced ship in the fleet used steampower. There were nuclear submarines, but of 1950s quality. Of particular note was the fact that the Chinese fleet had no area air defense capabilities--their premier surface-to-air-missile was an unlicensed knockoff of the French Crotale, and couldn't shoot anything outside of visual range, at high altitudes, or really doing anything more sophisticated than trying to kill their ships with low-altitude dumb bombing runs.

In the past twenty years, however, the PLAN has, much like the German Navy towards the end of the 19th century, gone from an afterthought to the world's second most powerful force. It began, as modern China's military capabilities almost all began, with the looting of the former Soviet Union for naval technology. While Soviet naval tech was generally lacking, it was much better than anything else China could get its hands on after the arms embargo placed on it in the 1990s by the US and Europe in response to Tienanmen and the end of the Cold War. China bought Soviet diesel submarines, Soviet air-defense destroyers, and Soviet aircraft carriers, which it promptly left lying around [and turned one of them into a theme park]. This was combined with copies of various pieces of Western, mostly European, technology for everything from sonars to surface-to-air missiles. China then began developing its first modern indigenous surface combatants, the Type 052C, but there were still problems. The engines were Ukrainian and had reliability trouble, the gun jammed, there was no VLS.

It is really in the last ten years that things have begun to move extremely quickly, and even only in the latter portion of the decade. In 2012 the Type 001 Liaoning entered service, and although it remains more of a training ship than an operational vessel, and is held back by a poor carrier aircraft, the mere fact that China "built" a carrier was a surprise to many. In 2014 the first Type 052D destroyer came online. It had learned the lessons from the Type 052C, and in just the last six years at least ten have entered service, with a class size of about 23 expected. This rapid expansion is what has frightened competing navies the most--in a little over a decade, the PLAN is constructing more destroyers than the British, French, and Australian navies have in service combined. It is also building the Type 055, which has generally been called a "destroyer" despite being more aptly described as a cruiser in line with the Ticonderoga-class. China has also built 30 modern frigates in the past decade, which has also swelled its numbers, along with numerous smaller corvettes, submarines, and so on.

This is why the PLAN has become such an object of concern. While it cannot challenge the US Navy yet, at least outside its littoral zones, the decline of the USN and rapid expansion of the PLAN means that it is a serious threat. And the speed at which it has developed has made many fearful. As recently as 2010, the idea of China operating an aircraft carrier or modern destroyers seemed distant, possibly preposterous. Now China speaks openly of having a six-carrier fleet in the 2030s, although, as with many of China's plans to operate full US-replicated tech and doctrine, these may have somewhat caved to realism. China is mighty, but it has already done the easy part--the last part is much harder, in economics and in military matters. Building the software, the institutional knowledge, the hardware to compete with the US Navy will prove difficult.

3. What the PLAN looks like now--submarines

Submarines are one of the PLAN's weak spots, particularly nuclear submarines. China is, however, making some fairly rapid advances in this area.

Their nuclear submarine program has been considered a bit of a joke for some time. In the late 1950s when all the cool kids great powers were getting nuclear submarines, China decided [or at least Mao did] that China needed nuclear submarines too. About 16 years later, the product of this effort finally emerged as the Type 091 submarine. Based on 1950s technology, with poor radiation shielding and basically nothing done in the name of noise reduction, and not even a teardrop hull, the Type 091 was probably more of a threat to the sailors who were on it than anyone else, except maybe the two Tench-class submarines that Taiwan operates, which use 1940s technology and are the world's longest-serving submarines, though they're mostly used for training nowadays. Even then, my money would be on the Tench despite the upgrades the PLAN has made to the Type 091. There's only so much you can do to put lipstick on a pig.

China also produced an SSBN, the Type 092, which was probably the only submarine more useless than the Type 091. About the only useful thing it did for the PLAN was that it served as a test platform for SLBM launches. Reports suggest that the Type 092 is the noisiest SSBN ever made, and is thought to have only ever undertaken a single patrol. It stayed at port for so long that it was thought to have sunk in an accident. And the experience turned the PLAN off from building SSBNs for over twenty years, until the Type 094 came online in 2007.

More recent submarines are growing in capability, though. The Type 094 is not the noisiest SSBN ever made, and may not even be the noisiest in current service--that honor going to the Delta III operated by the Russian Navy, which uses 1970s technology, and, which, according to the US Office of Naval Intelligence, is about as noisy as the Type 094. The Type 093 is also moderately capable--it actually functions and can fire anti-ship missiles. However, the Type 093 is still considered only comparable to the Soviet Victor III class, again using 1970s technology. Future submarines have not yet been seen, but expectations are that China will make another step forward to late 1980s or early 1990s tech levels, producing something on par with the Los Angeles or Akula for the first time.

China also operates a fairly capable fleet of coastal diesel-electric submarines. While some are quite old--the Type 035--most are pretty average for the global submarine force, a mix of Kilos and domestic AIP designs. The large number of boats in operation and their anti-ship missile capability means that these should be considered a real threat, at least in the littoral waters near to China, but they aren't decisive by any means, especially since China is facing off against such threats as Japan's Soryu class, probably the most advanced diesel-electric sub in existence.

In conclusion, the PLAN is still pretty weak on the submarine front--weaker here than on anything but its carrier force, but its capabilities are advancing rapidly and should not be underestimated.

4. What the PLAN looks like now--surface combatants

The surface fleet is definitely the most impressive and capable portion of the PLAN, no questions about it. China once had a fleet consisting mostly of coastal frigates and missile boats. As recently as 2000, its fleet had no real area-air-defense destroyers, and no SAMs that could operate outside visual range. Now, though, the PLAN operates tens of advanced guided-missile destroyers, advanced frigates, and still retains a large number of small, stealthy missile boats.

The major focus of Chinese warships appears to be on anti-air, with anti-surface being a somewhat secondary concern for all but the smallest vessels. This makes sense when you realize that the primary focus is, at least for the moment, on using land-based aircraft to strike against hostile fleet formations using long-range anti-ship missiles, in a very Soviet sort of way--"Backfire raids" using long-range land-based aircraft with anti-ship missiles were one of the US Navy's major concerns during the Cold War, and the very reason for the F-14's existence along with the AIM-54 Phoenix it carried. However, China has been developing anti-surface capabilities as well using ashms and land-attack cruise missiles [generally the same thing, actually]. Since China has finally developed a VLS system that allows it to use the same launcher for multiple missiles, its most recent ships have become more versatile in that role.

How effective these ships are at that task is, however, a relatively open question. Their radars at least seem to quite sophisticated, using flat-panel AESA, and have been dubbed "Chinese AEGIS" by the highly reliable Chinese domestic media. The basic platform their surface-to-air missiles are based on also seems to be fairly capable--the HQ-9 is an S-300 derivative, a respectable SAM system though, again, how capable it is against opponents in an active electronic warfare environment is questionable, and it has basically no capabilities against stealth aircraft like the F-35 as far as anyone knows. The efficacy of their CIWS, again, is open to question. Really this is true of everything about the modern PLAN, and PLA in general. The PLA is secretive, has not exported most of its hardware, and has developed largely independently of foreign militaries, though it is definitely influenced by them. Now that the PLAN has moved away from simply copying foreign hardware and patching it together, its capabilities are much harder to discern.

However, they should be taken as a very real threat, and not written off. My guess would be that their warships are about as capable as most of their non-American counterparts, save those equipped with AEGIS, but that's all my guess is---a guess.

5. What the PLAN looks like now--carriers

The PLAN currently has two carriers in service, and two more known to be under construction, and most suspect that it will build several more. However, at the moment, the PLAN's carrier force is largely a paper tiger, designed around training. The first carrier, the Type 001, basically was a "how do you build a carrier" kit bought from Russia, possibly by accident--the "fully functional" Minsk ended up as a theme park, believe it or not. The hull was purchased from Ukraine and then completed in China years later. It is also believed that the PLAN may have learned some things about aircraft carriers from the HMAS Melbourne, which was sold to a Chinese firm for scrapping--rumor has it the PLAN had no clue this had happened and then had a field day looking at all the stuff that hadn't been taken out. This was back in the old days when nobody could imagine that China would have an aircraft carrier. The Type 002, however, is built from scratch, but isn't particularly capable especially as it's a ski-jump carrier, leaving the Type 003 the first carrier which will prove actually useful.

The main thing holding China's carrier fleet back, though, is a lack of a suitable aircraft. Originally China was considering purchasing Su-33s from Russia, hardly a good carrier-based aircraft but functional, but after Russia discovered that China had been mucking about building a Su-27 derivative without asking the deal fell through [China tells a different story, saying that Russia demanded exorbitant amounts to reopen production which it was unwilling to pay for a nearly obsolete aircraft]. As a result China operates the J-15 as its naval fighter, with... less than stellar results. It's extremely heavy, and, if it takes off from the carrier, has minimal range if carrying anything at all--it can't take more than two short range air to air missiles into the sky to fight enemy aircraft. However, the J-15 isn't really intended for combat service--it's intended to teach China how to run carriers, and it seems to work well enough for that task, aside from the multiple fatal crashes. There is, however, thought to be a new carrier fighter in the pipeline--most say the J-31/FC-31, which has reduced RCS and a number of carrier-unique features, is being pitched as a carrier-based aircraft and will serve as China's carrier fighter in the future. China also lacks any fixed wing carrier-based airborne early warning, which could prove troublesome--a lack of AEW means that its view is limited by the horizon--and has no resupply aircraft like the C-2 Greyhound. As a result, for the moment at least, China lacks an effective carrier force, but it is likely to continue developing rapidly in the next decade and become a fairly substantial threat. Remember that as recently as 2010, a Chinese aircraft carrier seemed preposterous to many people, and now they have two.

6. Some attention to land-based aircraft

Land-based aircraft as a naval weapon are not generally used by the US, which has never had a reason to develop them as a doctrinal focus. Sure, you could potentially envision them as being used, and there even were situations where they were utilized, but it just wasn't generally a priority or how things were done. For China, though, taking influence from the Soviets, and lying on littoral seas with hostile powers in the First Island Chain, land-based aircraft and missiles are a key part of doctrine. Although this is often viewed as a new thing, called A2/AD [anti access/area denial], it's really the result of a long historical evolution of naval power, probably most refined by the Soviet Union. As a result, land-based naval aviation plays an important role, firing anti-ship missiles at standoff distances at enemy vessels, and shore-based launchers of anti-ship missiles are also an important weapon. The combination of these systems means that venturing within China's littoral seas is a dangerous proposition during war, and some waters, like those of the Taiwan Strait, are effectively considered closed at this point in the event of hostilities breaking out. For this reason air superiority is also important in this sort of naval warfare, as if either side gains air superiority it can pummel its opponents with air-launched anti-ship missiles. China's capabilities in this area are sophisticated and should not be underestimated, but they are unlikely to go through a rapid period of growth like the PLAN's fleet.

And a brief note dedicated entirely to the DF-21D "Carrier killer" that the PLA likes to show off. It's a pretty impressive capability, on paper, using a ballistic missile to hit a carrier. The CEP [circular error probable] means that it could even happen, presuming that an aircraft carrier was good enough to sit in one place, not moving, long enough to be detected by China. Aircraft carriers look big, but the seas are huge, and they're surprisingly hard to find. They also move quite fast, in excess of of 35mph/55kph, and thus by the time the ballistic missile has launched it might well be out of range given the fact that ballistic missiles are not particularly known for their maneuverability in terminal stages, at least not in the realm of miles. The DF-21D is not a particular threat to the modern aircraft carrier. It could potentially be one if it evolves into a hypersonic boost-glide vehicle, but that's a whole additional can of worms, that I might address a different day.

7. The PLAN's plans for the future--what will it look like in 2030?

Unfortunately the PLAN is not exactly the most open of navies, as I've repeatedly mentioned. There are no public debates over acquisitions programs, no big fleet shape plans, relatively little detail.

However, a few things are fairly sure bets or publicly announced.

China has repeatedly announced plans to build a six-carrier force, including the Type 001 and Type 002, but also a pair of Type 003 [already under construction] conventionally powered supercarriers and a pair of Type 004 nuclear powered supercarriers. However, it seems that the Type 004 is currently on hold. Why, exactly, is unclear, but it seems to be technical difficulties, which are not particularly surprising given that China's experience with nuclear maritime propulsion seem to be rather limited and have had poor results in their submarine fleet. The costs were also expected to be too high--China does not have an unlimited quantity of money, despite what it may flaunt, and nuclear carriers are expensive to develop especially given that China has not built a nuclear-powered surface ship before.

A new carrier-based fighter is almost certainly in the cards because the J-15 is pretty much useless. The FC-31 seems by far the most likely candidate but it could be another aircraft we haven't seen yet. The addition of this aircraft will greatly improve the PLAN's capabilities.

China also has two Type 075 amphibious assault ships/LHDs under construction, and I would expect this class to be much more prolific. These ships are much more affordable than the full carriers, and focus on areas in which China is particularly concerned--amphibious assaults, say, on islands in the South China Sea or on Taiwan, and anti-submarine warfare, which is of particular importance given that submarines cannot be easily halted with land-based anti-ship missiles and air-launched cruise missiles provided for in their area denial doctrine--submarines are one of the few things that can slip through that net.

The surface combatant fleet is likely to continue growing, but I am not sure if it will swell much beyond the ~23 Type 052D ships planned and the 8 Type 055s. We're likely to see the retirement of the classes preceding the Type 052C destroyer and the Type 054 frigate, and they may be offloaded to Bangladesh, Myanmar, or Pakistan--there is substantial precedent here, and it seems that China is interested in expanding the naval capabilities of its partners around India.

The submarine fleet is likely to see rapid expansion if the PLAN is satisfied with the Type 095 and Type 096 classes, and we're likely to see more diesel-electric subs built as well. Submarines are generally quite good at fighting submarines and conducting area-denial missions, and the large and capable subsurface forces of Japan, Korea, and the United States means that this has to be an area the PLAN invests more in--and the fact that several Southeast Asian nations are also looking at acquiring submarines makes the issue more pressing.

8. Conclusion

China has in the past decade gone from a third-rate navy to perhaps the greatest threat the US Navy has faced since the Second World War. This has significant geopolitical implications, and has resulted in neighbors scrambling to overhaul their naval forces. The growth of the PLAN means that the US can no longer easily defend Taiwan or the South China Sea, or any of China's littoral waters. This, more than anything else, is what has everyone scrambling in the US talking about "great-power competition" because denying access to the US Navy and working on power projection, an inherently naval thing, is essentially a clear sign that China is looking to directly compete with the United States. Underestimate the PLAN at your own peril.

I hope to have more detail and citations in future posts, but unfortunately the PLAN is very secretive [yes, I've said that fifty times already] and this is a pretty big topic to discuss without going into details about all sorts of naval tidbits. Thanks for reading the fourth post in what I hope will be a fairly substantial series, probably around ~12 posts.

9. Citations

James Holmes, "The Danger Zone In Naval Arms Races"
USNI, Report to Congress on Chinese Naval Modernization
Hans Kristensen, China's Noisy Nuclear Submarines
Eric Wertheim, China's Type 052D Destroyer is a potent adversary
Robert Farley, Let's Talk About The Chinese Navy's Type 055 Destroyer
Ryan Pickrell, Chinese fighter jet holding China back as it builds carrier fleet
Look, much more here is based on loose speculation, more unreliable sources, and stuff I've picked up over the years, because public info is limited. So take everything I say with a grain of salt, but understand that it's the best information I know of.
submitted by AmericanNewt8 to neoliberal [link] [comments]

Last Week in Indian Economy - For the Week Ending 20th March, 2016

Last Week in Indian Economy

Headline Stories

The Good News: Inflation
Do you hear that sound? That’s the sound of retail stores in India reducing their prices to a 3 month low. After rising for five straight months, retail inflation in February came down to 5.18%. This has been attributed largely to a fall in the prices of vegetables, pulses and fruits. While cereal prices remained the same, the dark lining is that prices of eggs shot up significantly. Time to substitute omelets with salads, perhaps? But that’s just the retail end of business. Coming to the wholesale side of business, inflation in wholesale prices fell for the 16th straight month and remained negative at -0.91%. The data comes from the Consumer and Wholesale Price Indices, which track retail and wholesale prices around the country.
The Bad News: Foreign Trade
Not to harsh your mellow, but stop rejoicing over the good news for a second and hear this. India’s February Exports decreased by 5.66%. If you haven’t been following the export numbers, and no one can blame you for that, this is the 15th consecutive month in which exports have decreased. Petroleum products was the dark swan as exports of gasoline, jet fuel etc. fell by 28%. The golden goose of the bunch was jewellery as exports of shiny rings and necklaces increased by 11%. Just to give you some perspective, our brothers to the north, the Chinese saw their exports fall by 25%. On the flip side, India’s imports also decreased by 5.03%. You win some, you lose some, right?
Rajya Sabha Feels Betrayed
Giving statutory backing to the unique identity number system, the Lok Sabha this week has passed the Aadhaar Bill. This newly passed bill is a significant instrument for the government’s Direct Transfer Benefits scheme for better targeting of subsidies. The argument against it was that it violated the Supreme Court order that said an Aadhaar Card cannot be mandatory but only voluntary. Now, if you remember your 7th standard civics syllabus, both houses of the parliament, the Lok Sabha and the Rajya Sabha, have to pass a bill for it to become a law. What your 7th standard civics textbook probably didn’t mention is the Rajya Sabha has no say in the matter if a specific bill is categorized as a “money bill”. Which is exactly what Finance Minister Arun Jaitley, who piloted the Aadhaar bill through parliament, did so that it can bypass the Rajya Sabha where Jaitley’s BJP does not have a majority. One can only imagine how emotionally hurt the Rajya Sabha was when the Lok Sabha went behind its back to pass the Aadhaar Bill.
It’s Raining Black Gold: Sweet, Sweet Oil
“Tass-Yurikah” sounds like an Urdu swear word, but it’s actually the name of a Russian oil field. Soon enough, it won’t even be entirely Russian anymore. A group of Indian oil companies signed a deal with Rosneft, the Russian oil company that owns Tass-Yurikah, to buy a 29.9% stake in the oilfield for $1.28 billion (₹8,505 crore). This puts the Indians in partnership with the British oil major BP who owns 20% while the remaining 50.1% is still owned by Rosneft. Deals to explore a possible stake sale in Vankor, another Russian oilfield, were also signed. This comes at a time when global oil prices are falling off a cliff, just like BJP’s poll numbers in that recent Bihar election. This also comes at a time when Russia’s economy is suffering from an acute case of international sanctions that were imposed on Russia after they snatched Crimea from Ukraine, just like the JD(U) snatched seats from BJP in that recent Bihar election. Too political? Thought so. Meanwhile, they just hiked petrol and diesel prices by 3.07/litre and 1.07/litre.
Ban on 344 Illegal Drugs
The government is playing the game that everyone knows it excels at - banning things. This time around, the health ministry has issued a ban on over 344 drugs. No, not the one’s that make you hallucinate or see sounds and hear colours, but the one’s that are pharmaceutical. Known as “combination drugs”, these drugs combine two or more drugs together so the patient only has to pop one pill instead of three. Technically, they were being sold illegally since none of them had approval from the central government, but had entered markets nevertheless after receiving blessings from only the state governments. At least this time around, the bans make more sense. Cough syrup Corex and the famous Vicks Action 500 were among the 344 substances banned. However, the Delhi High Court reversed the ban on Corex and is set to hear the case on March 21st after Pfizer (PFIZER), the company that makes Corex, sent lawyers marching down to the Court right away. Feeling a bit jealous of Pfizer, 21 other pharmaceutical companies, including P&G India (PGHH), the maker of Vicks, also managed to convince the court to reverse bans placed on their drugs as well.
Make Room for One More Tax
You know how countries sometimes impose tariffs on foreign goods to make domestic players competitive? Well, states across India such as Uttarakhand, Bihar and Assam seem to have forgotten that they are not independent countries but merely states within one. It’s okay, we all go through an identity crisis at some point. Lawmakers in those states have imposed an “entry tax” on e-commerce websites for selling products that were not made in those states - which sounds eerily similar to tariffs imposed by sovereign nations. What could make this worse? Almost half a dozen other states are also considering imposing a similar tax on e-commerce goods sold inside the state that were manufactured outside the state. If this goes through, you might have to foot the bill for your state’s poor manufacturing as online retailers pass these taxes on to the customer. Also, the grapevine has it that Amazon offered to acquire Flipkart for $8 billion (₹53,160 crore) last year, but the deal fell through. Make of that what you will.

Sidebar Stories

  • Baba Copycats: After the initial success of Baba Ramdev’s Patanjali, other “spiritual gurus” in India are lining up to launch similar companies in the FMCG space, particularly noteworthy is Sri2 Ravi Shankar’s Sri Sri Ayurveda.
  • Bangladesh’s Central Bank Governor, Atiur Rahman, resigned after hackers stole $81 million (₹538 crore) from the bank’s account at the US Federal Reserve, now touted as one of the world’s biggest bank thefts. Champagnes are possibly being popped by one Chinese casino operator in Philippines to whom the stolen money was reportedly delivered.
  • Videocon (VIDEOIND) exited the telecom services business after selling its entire allocated spectrum in 5 states to Airtel (BHARTIARTL) for ₹4,428 crore. Spectrum is what telecoms need to increase their connectivity and range.
  • Republican Frontrunner for the US Presidential Election, Donald Drumpf, has said that he favors Indian students graduating from US Universities being allowed to stay back and work in the US. How is that economic news, you ask? The brain-drain industry is a billion dollar industry.

Market Movements

Let’s do the numbers. Since last week:
  • BSE Sensex: ↑ 0.61%
    Week Open: 24,801.70
    Week End: 24,952.74
  • Nifty: ↑ 0.82%
    Week Open: 7,542.60
    Week End: 7,604.35
  • Gold prices: ↓ 1.18%
    Week Open: 29,486
    Week End: 29,139
  • INR / USD: ↓ 1.12%
    Week Open: 67.138
    Week End: 66.384
Stocks that moved heaven and earth:
  • Ambuja Cements Ltd. (AMBUJACEM): ↑ 10.45%
  • ACC Ltd. (ACC): ↑ 8.58%
  • Lupin Ltd. (LUPIN): ↓ 16.20%
The yield on 10-year government bonds is down 1.06% from 7.601 to 7.520.

Up Next

Important Numbers being released this week:
No important numbers are being released this week.
Except India Foreign Exchange Reserves which are released every Friday.
Instead, let us all enjoy this gif of a lolcat playing a guitar.

Footnote Stories

Interest Rates on the Public Provident Fund (PPF) were cut to 8.1% from 8.7%. The popular 5-year National Savings Certificate will also fetch 8.1% interest rate instead of the present 8.5%. This post has mentioned 22 percentages by now. Are you sick of them, yet?
A thread posted on the /india subreddit of the popular website reddit.com last week titled “Last Week in Indian Economics” was wildly successful as it recieved 372 upvotes at last count and was even gilded within 24 hours. The writer of the post was quoted as saying, “Yeah, this is going to be in my résumé now.”
< For the Week Ending 13th March, 2016
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Weekly Roundup | Random Chat | Notifications

News roundup for the previous week.
In International news
  1. BRICS Bank to Finance Technological Innovation Projects: the multilateral lender approved loans worth $1.5 billion last year, mainly to finance clean energy and infrastructure developments in BRICS countriesBrazil, Russia, India, China and South Africa
  2. South Korea Vows to Protect Firms Amid China Pressure Over Thaad
  3. U.S. report accuses Taiwan of human rights violations
  4. Keener on arms from China, Bangladesh dithers on defence pact with India: Bangladesh military are not keen on purchasing defence hardware from India. They point to the poor quality of equipment India supplied to Nepal and Myanmar, while admiring Chinese equipment for being cheap and easy to use
  5. THAAD battery reaches S. Korea, deployment begins
  6. US & South Korea drills may lead to 'actual war', North Korea warns
  7. Chinese reporter Ye Qinglin 叶青林 talks about how BBC hired him to smear China and how western media brainwashes people
  8. Beijing Is Changing Its Tone In South China Sea Disputes
  9. Is Beijing outflanking the United States in the South China Sea?
  10. China and Russia have agreed to intensify their opposition to the US’ controversial THAAD missile defense system which is set to be deployed to South Korea, both countries have announced
  11. China's foreign minister calls on North Korea to halt missile tests
  12. Japan must cure its 'anxiety' about China
  13. How do you frustrate a CIA hacker? Show them Chinese
  14. Overall Best Countries Ranking 2017: China ranks in top 25
  15. China seeks global support for cyber sovereignty framework: countries should wield sovereign authority over all cyber-related matters within their territory
  16. 'Sky Net 2017' launched to capture fugitive corrupt suspects
  17. China trying to rope India, Russia in cyber pact against the West
  18. China issues report on US human rights
  19. Duterte thanks China for lightening up Philippine economy
  20. Beijing says it has reached agreement with ASEAN over disputed South China Sea
  21. Mu Cong has become the first-ever female Chinese athlete to win two bodybuilding competitions, as well as membership to the International Federation of Bodybuilding and Fitness (IFBB)
  22. China tried to get the U.S. to negotiate with North Korea. The U.S. declined.
  23. Falling Malaysian Chinese population worrying: Analysts
  24. Russia Creates 'Special Business Force' for Work in China
  25. China blasts CIA after WikiLeaks reveals extent of agency’s hacking abilities: CIA can compromise an array of popular tech products. The CIA “lost control of the majority of its hacking arsenal,” WikiLeaks said in a statement
  26. China says trade war will only bring "pain"
  27. China Wins Nine of 10 Events at First FINA Diving World Series
  28. Racist T-shirts condemned by Chinese embassy in Germany
  29. Chinese Universities Have Plenty to Gain from Trump’s Policies, Says Scholar: United States is slowly turning away professionals, academics, and students with its current “anti-global” stance and travel ban. Their loss, however, is China’s gain, especially Chinese universities
  30. As U.S. aid and influence shrinks in Pakistan, China steps in
In Domestic news
  1. White paper: Judicial Transparency of Chinese Courts
  2. Xi's vision of media: Responsible, innovative, global
  3. China to formulate judicial exclusionary rule of illegal evidence
  4. 5-year-old girl in ICU after falling from 11th floor emulating umbrella jumping scene from cartoon [Chinese]
  5. China Counterfeiting: 8 Common Myths | China Law Blog
  6. Tibet and Xinjiang offer preferential tax terms, draw China’s jet set
  7. Baidu’s Robin Li calls for easier visas for foreign tech workers in China
  8. China's new civil code light on individual rights reforms
  9. [HNA acquires 80% share of Caijing’s parent company [Chinese]](HNA acquires 80% share of Caijing’s parent company [Chinese])
  10. Pomp and Politics: China's Annual Congress in Photos
  11. More Chinese students return from overseas in 2016: In 2016, 544,500 Chinese students studied overseas, 144,900 people more than 2012; while the number of returnees in 2016 was 432,500, up 159,600 than 2012
  12. 3 Things Chinese Tourists Are Surprised To Find When They Travel Abroad To Taiwan: People are ominously courteous, It’s not very modern, Things are cheap
  13. China approves 38 new Trump trademarks
  14. China Building 21 Nuclear Reactors to Boost National Power Supply: Of this total, the construction of five should be finished within the year. Together with "other projects," these rectors will add some 6.41 GWe of nuclear generating capacity to the national grid
  15. Women hold up half of China's winter sports "sky": Women contributed half of the gold medals for the Chinese team's Sapporo effort
  16. China considers subsidies for second children in population push
  17. Returning Chinese from Abroad Driven by Legal Barriers, Other Opportunities
  18. Premier Li Keqiang sounds warning on Hong Kong independence: Premier says separatist sentiment in Hong Kong will lead nowhere and the ‘one country, two systems’ principle will be implemented without distortion
  19. China to turn 800,000 hectares of marginal farmland into forests or grassland: China will begin to pilot projects to improve the quality of forests and restore ecosystems along the Yangtze Economic Belt
  20. China launches world’s largest oil exploration sea platform: The 42,000-tonne Bluewhale 1 is bigger, faster and can drill deeper than its rivals in disputed waters. Can reach the seabed at a depth of 3,658 metres and bore a further 15,240 metres into the earth’s crust
  21. Myanmar women illegally marry, live in Yunnan: between 20,000 to 30,000 Myanmar women married Chinese men and live in Dehong without the proper documents
In SciTech news
  1. China releases first images from Fengyun-4A geostationary weather satellite: provide high spatial, temporal and spectral resolution observations of China and surrounding areas, improving weather forecast and monitoring
  2. China is aiming to launch a new Long March 8 rocket by the end of 2018 to fill a gap in the country's carrier rocket capabilities and commercial launch prospects, a top space official has said
  3. The China gene genius: from Hebei to the pinnacle of American science. Meet the young China-born American scientist (Feng Zhang ) who is making waves with a technique that could roll back disease and usher in “designer babies”
  4. China orbited a small experimental satellite called Tiankun-1 (TK-1), utilizing the Kaituozhe-2 (KT-2) rocket, new launch vehicle. TK-1 will be used for remote sensing, telecommunications and experiments in minisatellite-based technologies
  5. China speeds 5G roll-out with world's largest test field
  6. China’s first woman in space on spacewalks, the Chinese space station, and future female astronauts. Liu Yang answered questions on the sidelines of the NPC ahead of International Women's Day
  7. China is reportedly developing a manned space mission to the moon
  8. China’s tech giants are pouring billions into US start-ups
  9. Xiaomi's Global Move: Chinese Tech Firm Challenges World's Smartphone Market. Chinese electronics company is the first to produce a smartphone powered by a custom chipset. It is also the fourth smartphone maker to have self-designed processors
  10. Why China’s internet use has overtaken the West: We’ve reached a watershed moment in Chinese people’s online lives – and their innovation will lead the way for the rest of the world.
  11. China's domestic underwater glider reached a depth of 6,329 meters during a mission in the Mariana Trench, breaking the previous record of 6,000 meters held by a U.S. vessel
  12. China to develop space rockets to launch from planes: Move comes as Beijing aims to send hundreds of military, commercial and scientific satellites into orbit
In Economic news
  1. Massive investment planned in ‘Made-in-China’ industrial robots: 100,000 industrial robots set to be built annually by 2020, with sales of service robots also expected to exceed 30 bn yuan by then, according to official forecasts
  2. China overtakes eurozone as world's biggest bank system
  3. Tesla's China Sales Triple to More Than $1 Billion - Bloomberg
  4. China February official manufacturing PMI rises to 51.6, beats forecasts
  5. German region decides to sell Hahn airport to China's HNA
  6. China creates over 13 million new urban jobs for 4 consecutive years
  7. European businesses attack China high-tech push
  8. China's Plan to Build Its Own High-Tech Industries Worries Western Businesses
  9. China’s Richest Win, Mexican Billionaires Lose With Trump Effect: The 36 Chinese billionaires on the Bloomberg Billionaires Index have increased their wealth by 13.2 percent since the real estate mogul was elected U.S. president on Nov. 8, a $39.2 billion increase
  10. China's banking system is now the biggest in the world
  11. Opinion: Beijing, Washington Face Similar Economic Challenges
  12. Xinhua Insight: China's booming "sheconomy". female consumption in China reached 2.5 trillion yuan (about 362 billion U.S. dollars) in 2015 and is expected to hit 4.5 trillion yuan in 2019
  13. New report confirms phenomenon: no country comes even close to China in self-made female billionaires
  14. Chinese yuan to be stable in 2017
  15. Asia will soon be the world’s economic center if it isn’t already
  16. Chinese goods flex more muscle in S. Korea: Chinese manufacturers, armed with lower prices and improved quality, are now venturing into new South Korean markets such as home appliances and even autos
  17. China clarifies manufacturing plan after EU group criticism
  18. China's foreign reserves rise following capital controls: reserves rose by a relatively modest $6.9 billion to just over $3 trillion
In Military news
  1. China’s claim it has ‘quantum’ radar may leave $17 billion F-35 naked: While the photons are separated, they retain their quantum link. Attempting to break that link would be a giveaway. And any attempt to distort would be equally noticeable
  2. China says it has received its largest foreign drone order: The order for the Wing Loong II was placed before the next-generation unmanned aerial vehicle (UAV) successfully completed its maiden flight
  3. Latest-generation Chinese combat drone makes maiden flight: Wing Loong II that flew for the first time carry up to 480 kilograms (1,058 pounds) of bombs and missiles, can stay airborne up to 20 hours and fly at a maximum altitude of 9,000 meters (29,500 feet)
  4. Retired general: Russia and China’s military are gaining on us. US military’s ability to deliver “shock and awe” on the battlefield is being overtaken by the rapidly revamping Russian and Chinese forces, the former NATO Supreme Allied commander
  5. PLA patents declassified for civilian use
  6. China also working to add hypersonic warheads to shorter range missiles: China has conducted seven tests of a hypersonic glide missile. While Beijing has acknowledged such testing, it was previously unknown that it is also working on a short-range hypersonic weapons development program
  7. Chinese troops appear to be operating in Afghanistan, and the Pentagon is OK with it
  8. China’s capabilities threaten US superiority in new battlefronts: space, electromagnetic and cyber warfare. China launched satellites with an arm that can grab satellites. DF-ZF hypersonic vehicle will travel at more than 7,000mph. PLA has been actively creating Information Warfare militias
  9. After a decade, China may have more warships than the US: According to some estimates, over the next 10 to 15 years, China could build its fleet to a total of 500 ships, including up to four aircraft carriers and 100 submarines as well as sophisticated corvettes, patrol boats and other combat craft
  10. China to step up patrols to create 'first class' navy
  11. China Expands Its Strategic Airlift Capability, Prepares to Expand Its Sphere of Influence: Y-20 was built to fill the roles of strategic airlift, paratroop transport, and heavy airdrop missions. The AG600 is a large flying boat, capable of landing and taking off on water, or on land-based airstrips
  12. China Declassifies 3,000 Military Patents in Bid to Create Military-Industrial Complex: They cover a wide range of ideas with great potential for both military and civilian uses. These include aircraft design, vehicle design, image processing, materials, communications, measurement and control
Other Notables
  1. Clickbait about China’s ‘parliament of billionaires’
  2. Misunderstanding China (1972) - unusually self-aware documentary explores the history of racist and ignorant American perceptions of China
  3. China And Trump: Can Relations Thrive Under ‘America First’ Policy?
  4. On reacting to John Oliver's latest Last Week Tonight featuring our good friend the Dalai Lama
  5. 8-Year-Old Armless Boy Finds Academic Success: Born without arms, Jiang's parents named him after a famous quote from the Book of Changes: "As heaven's movement is ever vigorous, so must a gentleman ceaselessly strive." Jiang's parents hoped their son would be tough when facing life's difficulties
  6. E China's Women Leading Way in Entrepreneurship: "2016 Report on Zhejiang Female Entrepreneurs Report. Women in east China's Zhejiang Province have established over 1.46 million businesses. Some one-in-19 local women in the region are their own boss
  7. 《朝歌》 Zhao Ge drama trailer 2017
  8. Western liberals stole Mao's proverb “women hold up half the sky”
  9. 7,108 parts, with no single nail! Chinese man builds imposing ancient building
  10. "China's Oprah" busts The Great Wall of Zhang Yimou! (Eng Sub) 金星手撕张艺谋《长城》
  11. 解放军
  12. When China’s Got a Gripe It Can Turn a Billion People Against You
  13. Scholars debate the pros and cons of Chinese history books written by foreigners
  14. Some Recommended China Writers on Quora
  15. Pictures: Scenery of Reed Flute Cave in Guilin, China
  16. Love-struck Man Spends 21 Yrs Caring for Paralyzed Wife: Wang Bisheng and his wife Liu Guishu tied the knot 55 years ago, they were college classmates. Having looked after his wife for two decades, the man maintained that his love for her is still as fresh as it was when they met for the first time
  17. Pak-China-Russia nexus ‘scenario-changer’ for S Asia
  18. These Rare Examples of Early Photography in China Captured a Disappearing World
  19. China’s New Film Ratings Don’t Cut Out the Censors
  20. Quora: Is China colonizing Asia and Africa?
  21. Chinese patrol soldiers rescue wounded wild animals
  22. Why Is China So … Uncool?
  23. Why China's Screenwriters Are Thriving
  24. Donnie Yen To Headline ‘Sleeping Dogs’ For Neal Moritz’s Original Film
  25. Here are six talented ancient Chinese women who once impressed in their time, and still affect us in our time: Li Qingzhao, Cai Wenji, Ban Zhao, Shangguan Wan'er, Su Hui, Xue Tao
  26. The Chinese Math Rock Bands You Need To Know
  27. Power Rangers Exclusive Set Visit (2017) - Ludi Lin Movie
  28. Virtual reality enriching students' learning experience
  29. "Pink flight" launched for women on International Women's Day in SE China
  30. Marking Int'l Women's Day with speed and guts! Watch stunning skills of Chinese female drift racer
  31. The Ten Cent Pictures co-produced Action movie 'Kong: Skull Island' Roars With $3.7M in Thursday Night Previews - and is getting great reviews
  32. Democracy in a nearly chaotic state in U.S , western Europe( Brexit , populism wave , Taiwan , now since yesterday South Korea. How long westerners will keep this charade about the benefits of democracy?
  33. What is democracy in China?
  34. The Chinese Movie Stars Who Regret Their Failed Relationships with Foreign Men
  35. Chinese villagers become millionaires selling yarn online
  36. Quora: Why do Chinese political leaders have engineering degrees whereas their American counterparts have law degrees?
  37. Chinese film has bright future on the global stage
  38. Quora: Why are China's GDP growth figures questioned in the western media?
  39. House always wins: the dark side of life in Macao’s casino economy
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Brazen Heist of Millions Puts Focus on the Philippines

This is an automatic summary, original reduced by 79%.
MANILA - It is a financial whodunit for the digital era: More than $80 million of Bangladesh's money vanished last month after it was electronically transferred out of that country's account at the Federal Reserve Bank of New York.As officials around the world search for the money and place blame, the caper is highlighting what looks like a weak point in the global financial system that allowed the money to get by regulators: the murky banking system of the Philippines.
The trip, which appears to jump from Philippine banks to the country's lightly regulated casinos and then to points unknown, touches on a number of pressure points where United States officials and experts say the country is vulnerable to potential corruption and money-laundering.
"The bank secrecy laws in the Philippines are among the strictest in the world," Francis J. Ricciardone, then the United States ambassador, wrote in a 2005 cable.
Photo The bank secrecy laws are a legacy of Ferdinand Marcos, the country's former dictator, who hoped they would help turn the Philippines into a financial hub.
"A good reason for targeting the Philippines could be the unusual situation where casinos have not been required to comply with the same anti-money-laundering regime that governs the banking system," said Paul Bromberg, the chief executive of Spectrum Asia, an investigative and gambling industry consultancy.
Money from the Bangladesh central bank ended up being transferred to one of the Philippines' newer casinos, Solaire, lawmakers learned in the hearing on Tuesday.
Summary Source | FAQ | Theory | Feedback | Top five keywords: Bank#1 Philippine#2 money#3 casino#4 country#5
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