In the strategic rivalry between Japan and China, high-speed rail contracts are one of the best ways to project power. And no Asian country offers more opportunities than India.
Prime Minister Narendra Modi meets counterpart Shinzo Abe in Tokyo on Friday, almost a year after the Indian leader picked Japan as a partner for the nation’s first line — a 980-billion-rupee ($15 billion) rail linking Mumbai and Ahmedabad, roughly the distance from Paris to London. Abe hopes that will make Japan the front-runner if India implements five other planned lines.
“The ‘Rail Wars’ between China and Japan are a battle for influence in the region that is way more important than just sales and profits,” said Jeff Kingston, director of Asian studies at Temple University’s Japan campus. “Modi would prefer to play one off the other and see what he can get for India, but geostrategically his government is leaning towards the U.S. and Japan.”
The competition between Asia’s biggest economies for high-speed rail contracts has been intense. China beat out Japan for a line in Indonesia last year, and the two are set to face off again over a proposed Singapore-Kuala Lumpur link. A Chinese proposal to build one in Thailand fell through this year, while a Japanese-backed plan for Vietnam was rejected by the country’s national assembly. Taiwan’s Japan-sponsored line has proved to be a financial flop and had to be bailed out by the government last year.
Since taking office in May 2014, Modi has boosted defense and energy ties with the U.S. and allies like Japan, including getting close to signing a long-awaited deal on nuclear power cooperation. At the same time, tensions have increased with China, in part because of its support for Pakistan, India’s main adversary.
Source: Economic Times