Chinese companies need to look further at bigger picture. A simple pros/ cons analysis will tell what they have lost by doing India's infras:
Pros:
1. an individual company gain some razar thin profit on paper, as India will negotiate the contracts to the last Rupee;
2. that profit (say in USD) is only assumed as pro rata. In the end, any market exchange rate fluntuation, inflations etc will easily wipe it out. India'corruption and red taps could also potentially wipe it out at any time (See UK vodafone's recent legal case).
3. some Chinese manual labours could have temporar employments in india, earning bottonline salary during project time.
That's basically it.
and maybe 4 : some Indians ( don't expect india govt though) would say "thank you , Chinese idiots, and now pissoff"
Cons:
1. raise up the costs of worldwide natural resources in the process. World's resources are not a ever-growing pie but are extremely limited. If India's infras are all accomplished, the market prices of all resources would shoot up to the roof - a big negative impact on CHina's existing and future infras cost.
2. help grow India's economy hence its millitary power - shoot on China's own foot in the long run. I don't mind China building up other countries' infras, say even Angola's for example. Angola at least has oil and mines ( even better than hard currencies) as collaterals to pay for it. Even if Angola's economy becomes as rich as Singapore's and its millitary might as powerful as Isreal's as a consequence after its infras buildup by China, at least Angola won't send an army to China's borders to kill Chinese and occupy Chinese land, now or in the future. However the same can not be said on India. We all know why.
3. hugh opportunity cost: an infras project normally goes together with bidding companies' own labours. Say building a road or railway, Chinese companies have to take Chinese workers with them mostly, as India nworkers are not up to the standard ( e.g. look at India's CWG games labours: amatuer families with dad, mom, untie, children, etc. lived by the roads and were building the roads. One can imagine their standard) CHinese mannual labours are consist of skilled young males instead. These Chinese young males are precious human resources acturally (both engineers and workers) and could make more money and have better opportunities elsewhere if they don't bid for India's penny-worth infras projects.
4. tie up Chinese banks' finance. Where India could have money to pay for all the projects? Nowhere ( see my recent comment on this in another thread about China's supercomputer). The fact that bidding companies will usually provide the corresponding finance means that the Chinese bidding companies (hence India's infras) would be financed by Chinese banks. However, Chinese banks could have much better use of these huge amount of cash elsewhere, for example hleping to fund China's own medicare and pension programs/investments, or acquiring African/Aus/Brasilain natural resources etc, rather than wasting in building some sh!tty roads and power stations from mumbai to bangalore...
5. a real and potential threat to China's low-end industries and correspoding employment in the mid term. China is climbing up the vale chain though, but it will take a long time. meanwhile , many CHinese are still relying on exporting to low-end markets to make a living. Multinationals such as Wallmart, Dell etc would take advantage of India's then brand-new infras by shifting umployments there instead, to jump start India's manufactoring industry. They will do so on the direct expenses of China. NO big name manufactering companies can afford to quit China for India in the forseeable future cuz India's infras are pathetic. Without the combination of China's money, expertise and man power, No country can build up India's infras on such a scale. No one can.
6. strategically put Pakistan in grave danger. Once India is up and running with its new Chinese trains on the new Chinese-built roads , highways, bridges and ports, hence with much higher level of logistic and transport supports, Pakistan would be no where near to defend itself in conventional conflicts. This would have much wider geopolitical implications and much higher price tags on all fronts for China.
Some Chinese posters here: get a grip!
