1. What I Saw, Heard & Learnt About China (during my visits in 1988, 2006 & 2007) By Dr T.H. CHOWDARY Director: Center for Telecom Management and Studies Chairman: Pragna Bharati (intellect India ) Former: Chairman & Managing Director Videsh Sanchar Nigam Limited & Information Technology Advisor, Government of Andhra Pradesh T: +91(40) 5567-1191/ 2784-6137(O) 2784-3121® F: +91 (40) 5567-1111, 2789-6103 hanuman.chowdary@tcs.com thc@satyam.com Talk @ CESS: 23 Jan 2008

2. THC-CTMSS371_Jan'082 Indian Heritage Abroad Bankok’s New international Airport Name: SUVARNA BHUMI Mural: SAMUDRA MANTHAN Beijing International Airport Mural: State that greets Arrivals : Gautam Buddha Chinese Government gave 5 Acres to Sami Narayan Trust to build Akshar Dham in China

3. THC-CTMSS371_Jan'083 China Restructures Telecom China re-structured telecoms to conform to W.T.O; Globalisation and to evolve into a knowledge society It corporatised & broke-up telecoms to learn competition before it can allow foreign Telcos to compete in China In 2008/2009 China opens telecoms to FDI & ownership

4. THC-CTMSS371_Jan'084 China’s IT & Software Business 160 clients in Asia Pacific 400 of Fortune 500 now source from China (same as in India) China turns out 2.8 m grads with 10% Engineers 10 X FRG Now 92% Chinese Svng 25 customers from Fin svcs, Telecom Mfg & govt verticals 5000 Associates by 2011 But benefits 35% Chinese IT demand is highly domestic China sought TCS to set up a software co. with large scale offhsopring and role model for Chinese IT industry In China 75% of outstanding is form Japan Japan kanji characters are Chinese Behan University specializes in Aerospace Engineering China produces 2000 Aerospace Engrs/yr TCS has over 1400 Associates in China (Beijing Shanghai & Hanghow) 92% are Chinese ; services 25 large customer ( Fin, Telecom Mfg & government)

5. THC-CTMSS371_Jan'085 China Telecom China Unicom China Mobile China Netcom Jitong China Satellite China Railcom Local phone ●●●● Long-d call ●●●● Mobile ●● Internet ●●●●●● I-D call ●●●● IP phone ●●●●● Sat-te call ● Operation of the Telecom Service Market in China in 2002

6. THC-CTMSS371_Jan'086 20052006200720082009 Subscribers of Fixed-line (million)361.614408.624453.573489.859514.352 Density of Fixed Line (%)27.731.134.336.838.5 Subscribers of Mobile (million)383.371433.209480.862519.331545.298 Density of Mobile (%)29.332.936.339.040.8 Subscribers of Internet (million)119.250137.138153.594168.953182.470 Density of Internet Subscriber(%)9.110.411.612.713.7 Density of PC(%)5.66.57.78.89.8 Telecom Investment(US$ m)12,45612,11811,66111,30210,954 The Development of China Information Industry

7. THC-CTMSS371_Jan'087 Fixed Line and Mobile Subscribers (Million), 2000-2005

8. THC-CTMSS371_Jan'088 The Development of China Information Industry

9. THC-CTMSS371_Jan'089 The Revenue and Increasing Rate of Mobile and Date Service

10. THC-CTMSS371_Jan'0810 The Total Number of Computers in Internet Unit: ten thousand, Source: CNNIC

11. THC-CTMSS371_Jan'0811 Three Types of Internet Subscribers from 2001 to 2006 Connected by special, phone and B-band, Source: CNNIC

12. THC-CTMSS371_Jan'0812 Internet Subscribers from Jun 30 2001 to Jun 30 2006 in China Unit: ten thousand, Source: CNNIC

13. THC-CTMSS371_Jan'0813 China Telecom China Unicom China Mobile China Netcom Jitong China Satellite China Railcom Local phone ●●●● Long-d call ●●●● Mobile ●● Internet ●●●●●● I-D call ●●●● IP phone ●●●●● Sat-te call ● Operation of the Telecom Service Market in China in 2002

14. THC-CTMSS371_Jan'0814 20022003200420052006 Investment in E-Gov in China Unit of measure Billion RMB

15. THC-CTMSS371_Jan'0815 Status of Some Indian IT Cos. In China (Sept 2007) CompanyChina debut year Current headcount Targeted headcount* Work being doneFuture plans Cognizant2005370N.AMNC clientsJapanese and domestic market Infosys20047004,000Domestic and MNC clients Japanese and domestic market Satyam20025001,000Japanese and Hong Kong comp. Domestic market and MNCs TCS20021,0005,000Domestic and MNC clients Japanese market Wipro20041501,000. -1,500 MNC clientsJapanese and domestic market (Source: Business World, 3 Sept 2007)

16. THC-CTMSS371_Jan'0816 India’s Exports of Software services in FY 2007 $ 31 bln China’s FY 2007 $3.59

17. THC-CTMSS371_Jan'0817 Where Research is headed India is the third most attractive foreign destination for non-equity R&D collaboration (Source: Business World,3 Sept 2007)

18. THC-CTMSS371_Jan'0818 Ten-Year Trend in Engineering and Technology PhD Degrees in the United States, China and India Source: The India Economy Review, 30 Sept 2007, Vol.4; www.iipm.thiktank.com

19. THC-CTMSS371_Jan'0819 Ten-Year Trend in Engineering and Technology Master’s Degrees in the United States, China and India (Actual and Estimated Data) Source: The India Economy Review, 30 Sept 2007, Vol.4; www.iipm.thiktank.com

20. THC-CTMSS371_Jan'0820 China City-scape (1) 1988 - (with Rajiv Gandhi) Bicycles everywhere, few cars & Cranes and Cranes 2006 - Brood Avenues, tree-lined Sky-scrapers ( Offices & Residences) Glittering Shanghai National Highways 6 to 8 lanes fly(ing) ovres on villages. Min.Speed 100/120 kmph Cars, cars… Mao’s Mausoleum – no longer venerated by the young professionals Professors willing to take criticism English understood in Hotels Some taxis

21. THC-CTMSS371_Jan'0821 China City-scape (2) 2007: Cars, cars everywhere Traffic congestion Old habitations being pulled down, M.S buildings coming up Hotel service improved remarkably, English more widespreadly understood Old & young exercising from 0530 Hrs. to 0800 Hrs. Rail-Road & services to thasa commissioned – Presscerised cars; track on permafrost!

22. THC-CTMSS371_Jan'0822 17 th Congress of the Communist Party (1) Membership 73 mln Capitalist Members 73,000 Harmonius Society From party-building to nation-building Consultative ( not electoral democracy)

23. THC-CTMSS371_Jan'0823 17 th Congress of the Communist Party (2) Of 11 Members of the Polit-Bureau 10 are engineers & Scientists – Prez: hydraulic Engineer P.M : Geologist Worrisome: Rich-Poor Gap Rural Unrest (Acquiring of land for Industries) Take over of land for industrialistion China faces secessionist movement form Moslems in Xing Xiang province; demography being changed as in Tibet China Russia rivalry for hegemony in central Asia Decision to have 2 Children !

24. THC-CTMSS371_Jan'0824 17 th Congress of the Communist Party (3) Normalisation of relations: Russia, India, EU, UK Modernisation of Armed Forces –Laser-killing of Satellites –Man on the Moon IP Creation-HUWAI, ZTE etc.

25. THC-CTMSS371_Jan'0825 Education 2000 Universities Wants to produce 2.0 mln Engineers/yr Telecom & Aerospace Universities ‘Varsity education not for all ( no right) Entry thro’ all-China exam Students allotted to best Universities according to scores Scholarships for almost all Compulsory Residence Debit cards ( tuition fees, mess…)

26. THC-CTMSS371_Jan'0826 Education (2) Huge libraries Broad-band /Internet Few printed newspapers but wall papers Labs &Libraries open day & night No Unions, no elections, no strikes Bikes for internal movement Grocer shops al around outside Entry/Exit restricted Identity cards compulsory

27. THC-CTMSS371_Jan'0827 Education (3) Professors outspoken about economics, education, society but reticent about politics “Pro-forma” political parties – 8 besides the communist party ( all tails like those of CPM in West Bengal”

28. THC-CTMSS371_Jan'0828 General (1) Only one English TV ! Channel I Beijing CNN (China News Network) Nonsense as in India not shown Party Member at work shown – Development Minimum Living income guaranteed – Shortfall subsidised thro’ debit card Work for all and amelioration of poverty possible only because of one-child norm 1978-2007 Huge migration from rural to urban Millions out of job because of privatisation of SOEs – 1500 slated for 2008

29. THC-CTMSS371_Jan'0829 General (2) Extensive schemes of re-skilling Health for all – failing Insurance GDP contribution PyMfg/SySvces 15%55%30% (18)(26)(56) Manufacture, Housing & Constructing – Engines of economy Huge trade surplus $ 350 bln Huge Exchange Reserve ~ $ 1.0 Trl

30. THC-CTMSS371_Jan'0830 Any Lessons for India? Population Stablisation Population asset if brains are counted; liability if mouths & bodies are counted Education for all ( upto HSC) Control rural to urban migration Regulate TV channels (no prurience but information, instruction & Inspiration by example) Self-confidence, self-respect, pride in Heritage (100 Confucius Centers abroad – Not Marx, Engels, Lenin, Stalin; Mao)

31. THC-CTMSS371_Jan'0831 Deng’s Re-orientation Glorious to be rich Doesn’t matter whether cat is black, red or white as long as it can catch the rats Some people have to become rich before the poor get out of poverty Gainful work, not ”welfare-dependence” Central Party School : Tens of thousands educated; instructed; trained (Com.Mohit Sen taught there)

32. THC-CTMSS371_Jan'0832 China-India-US-Russia Engagements Indian Ocean control (Malacca Straits) Gwadar (Pak), Cocoon ( Myanmar) Lhasa-Kathmandu Rail link 3 airports along McMohan line in Tibet India’s Exclusion form APEC &ASEAN – Malaysia as catspaw India &China compete for oil resources in central Asia, Sudan…. Giants as neighbours-Buffers?

33. THC-CTMSS371_Jan'0833 Dhanyawad: Thank You Go to next for optional information

34. THC-CTMSS371_Jan'0834 India X China Economic Reforms: China 1978; India 1991; China built human capital-education & health & controlled population China’s reforms gone farther; reaped bigger rewards Regional disparities, unemployment & enduring poverty of farmers common problems Short of land, water, energy & face environmental decay China’s cities transformed out of all recognition; India’s, in most visible essentials, stayed the same.

35. THC-CTMSS371_Jan'0835 India X China GDP & PCI Growth: Growth 1980s 1990s 2000-08 GDP 2007 China 9.3% 9.7% 10.0% $ 2100 bln India 5.6% 5.8% 8.5% $900 bln National PCI of China has grown 70% richer than India

36. THC-CTMSS371_Jan'0836 India X China China’s idle young look at Internet India’s idle young look at the Idiot box, TV Boys to girls : China 118 to 100 Ratio India 108 to 100 Delhi 122 to 100 In 1800 AD China was slightly richer than India but poorer since then

37. THC-CTMSS371_Jan'0837 India X China BPL ( < $1/ day) fell by 400m in China between 1981 & 2001 and by 20m In India between 1977 & 2000 BPL fell by 17% and in China by 35% Year China India Undernourished 1992 194m 221 2002 142m 216

38. THC-CTMSS371_Jan'0838 India X China ¼ of world’s poor in India 47% of India’s under Y5 are underweight 10% in China China India Infant mortality per 1000 3065 Life Expectancy7163 Adult Literacy9157

39. THC-CTMSS371_Jan'0839 India X China China India Fixed & mobiles 850m255 Mfg.firms owning Gensets 27%61% Cost of power is 39% lower in China than in India Workers in China 25% more expensive than in India but 50% more productive because of better & more education

40. THC-CTMSS371_Jan'0840 India X China India more corrupt than China Transparency Intnl Year China India 1994 2.16 2.8 2004 3.4 2.8 [Anything below 3 is rampant corruption ]

41. THC-CTMSS371_Jan'0841 India X China India more efficient in using capital Investment/GDP GDP Growth India (22 to 23)% 8% China 45% 10% India’s employees in mfr. 6.2m China’s 160m * India needs to invest 35% of GDP to get GDP growth of (8 to 9)% but subsidies to poor are increasing

42. THC-CTMSS371_Jan'0842 India X China India must move people from farm to factory Farm productivity Y2001 China India Rice63502904 kg/hectare Wheat38232742 Time taken 41 89 days to get business pmt: Co. allowed: 2.4 Y10Y to go

43. THC-CTMSS371_Jan'0843 Big thinkers China’s R&D staff and spending Spending, yuan bn Staff, FTEs*, m * Full-time equivalent man-years (Source: The Economist, November 10, 2007)

44. THC-CTMSS371_Jan'0844 Electronic artisans Trade in ICT* goods, $ bln Information and communication technology (Source: The Economist, November 10, 2007)

45. THC-CTMSS371_Jan'0845 Routers to the top telecom vendors’ equipment sales to carriers (Source: The Economist, November 10, 2007)

46. THC-CTMSS371_Jan'0846 Supernovo PC-makers’ market shares in China 02 2007, % of shipments Total market value: $4.7bn (Source: The Economist, November 10, 2007)

47. THC-CTMSS371_Jan'0847 Ringtone revolution India’s telephone lines by type, m (Source: The Economist, November 10, 2007)

48. THC-CTMSS371_Jan'0848 Boffins without borders % of firms with R&D centres in (Source: The Economist, November 10, 2007)

49. THC-CTMSS371_Jan'0849 What India Needs to do Contain population ( with draw welfare, promotion and vote) Withdraw subsidies Learn & Earn Education to create ability and morality and wisdom Health Insurance Old Age Homes Education ( SETs, private colleges, varsities) Massive Road construction; afforestation; centaur- bunding; water-bodies; work only if people move to where they are wanted Private sector in Education

50. THC-CTMSS371_Jan'0850 What India Needs to do (2) Massive housing construction; re-skills to farm labour as masons, carpenters, plumbers, electricians Political Party Regulator of India (insist to spell out what resources; what taxes on whom for every promise given), prosecute fraudster parties. Government as regulator; not doer, disinvest and retire debt- Rs. 125,000 cr as Interest payment Legislation to put ceiling on –(a) government servant expense –(b) tax as % of GSP/GDP –(c) debt as % of GDP

51. THC-CTMSS371_Jan'0851 What India Needs to do (3) Massive Defence R&D : contract out If” reserved” items can be removed from SSI;so should reservation into government & educational institutions Government to get off Hindu temples& direct administration of welfare Ban conversion: Law to govern change of religion like change of wife / husband divorce End Fraud of minority colleges

52. THC-CTMSS371_Jan'0852 Bharat Mahan Intellectual & spiritual ( Dharma) Economic (Artha) Power Prosperity for all (Kama) Military Power Willingness to play global role

53. THC-CTMSS371_Jan'0853 Global View of Bharat Vasudhaiva kutumbakam Aa noh bhadraah ritavo yaantu viswatah Lokaah samasta sukhinoh bhavantu Isaa vaasyamidam jagat, Tyaktena bhujithaa Maa gridhah.. Sahanaavavatu, Sahanau bhunaktu Sahaveeryam karavaavahaih Maa vidvishaavahaiah Tejaswinaavadheetamastu Om Santih, Santih, Santih

54. THC-CTMSS371_Jan'0854 Dhanyawad: Thank You