As I said, trading and economy is largely stand outside of Political Difference. Think of it this way, while most people in US think China is a threat and most people in China think US is a threat, if trade and financial activities were depended largely on political difference, then by no mean US and China can rack up a large trade bilaterally. And you won't see many Chinese product selling in the US.
business is business an politics comes second but your precieveing china's business and political relationship with the US the same as india and japan economic and political relationship. thats a bad way of thinking. i may as well say turkey and russia needs to set aside its problems and continue doing business, as the value of trade is billions. but they wont due to political reasons.
The Project (I will to admit upfront I did not follow the story closely) if I were not mistaken, was chosen because Japan have a cheaper solution to the HSR in Mumbai-Ahmedabad Sector, IIRC the Japanese offer is 14.6 billions for the sector while the Chinese offer is upward to 20 billions.
i go on google news and the japan and china tender hsr contract for indoneasia came up quiet frequenty, i read a very informative article from i think it was the financail time which took me up to speed then i read some chinese and japanese articles to get a broad view two sided view of the tender. i can find it where china's offer is 20+ billion, can you provide the source?
Financial incentive (such as repayment) is one of the issue regarding contract. Indeed for the Chinese proposal, the Chinese propose a 50% loan on the project with low interest repayment scheme for the next 10 years. Where the Japanese were offered 8.1 Billions in loan and probably market rate repayment.
i see you have been reading from the economic times as your saying exactly what they are saying.
Japan offers to fund 81% of India's first bullet train worth $15 billion - The Economic Times
again can you provide a reliable source to where china's loan agreement was to finance 50% of the project?
Problem is, depend on how you see it, incentive not always works especially if the country you are loan to could afford such a loan. And if you look at it this way, the different between the Chinese and Japanese proposal is nearly 6 billions dollars. And then you need to look at 3 different problems
1.) Would the incentive Chinese offer worth the 5.4 billions cost offset?
2.) Would India be able to repay the Japanese loan on a market rate?
3.) How about quality of the project?
1) well again it depends on the source for the $5.4 billion price differance.
2) wouldnt the interest rate be frozen? and woulnt the repayment date be flexible
3) will be explained in the next paragraph
In this case, India have make a decision in favor of the Japanese, and at first glance, the Japanese plan were indeed better (there are no way the incentive can make up the 5.4 billions different between the Japanese Offer and Chinese Offer) and I don't think India would be unable to pay the loan without the Chinese incentive and lastly, even if the offer is the same, I too would have gone for Japanese Stocks, I have seen the Rolling Stock Chinese Build for Sydney rail, and I travel in it EVERYDAY. and let me tell you this, I would prefer the older K-Set build by the British/Australia. You can see the finish is not great with the Chinese Train, Air-Con not working most of the time and the seat not really comfortable in design.
i shall ignore the 5.4 billion in differance. unitl i find a source thats reliable that reflects what you say.
are you trying to say japan could have given a better loan incentive than china? the chinese are almost begging people to take their money. only down side you have to give it back but the rates are uncompared. BUT, they may be substance in this. now lets say i beleve you and say china would loan 50% of the project whilst japan would give in 81%(japan giving 81% is correct). now this could be a big factor. because in the end its almost an investment. the japanese may be more willing to make more of a risk whilst the chinese are a bit wary as the economy is flat lining at the moment despite what the indian media says. now this means either japan is more willing to invest in india and take the risk or are being very agressive and stupid.(my guess is the first.)
to quality i know goods that are made in china come with the low quality perception too. and in some cases thats true. in regards to the trains in sydney, well i have not been to austraila so i have not seen them. but when you mentioned the aircondioning noe working. dont you think that trains working long hours are supposed to come with problems. besides when a product worth milions/billions, they will be inspected inside out by the client and the problems would be rectified. dont you think the ac unit would be just fine upo inspection prior to delevery?. also ac units are not even that high tech and can be procured from any country. and a problem in them not working would most probably reflect on the maintainance of the train not the manufacturer. also about 4 years ago i was looking for a water pump for my fish tank it needed to be 12000lhr and cheap. now i was either given the option to go for a well known fluval pump or a chinese jebao pump. i choose the later and after 4 years it has not failed, not once. most of my gadets are chinese they have not broken.
also the jf-17 thats chinese, the pakistanis are not complaining, yes they have admited its not as good as western kit but it works and is improving to western standards.
in regards to the stock exchange the chinese stock market has been fluctuating hugely andi woud not out money in it now. im not to familiar with the tokyo stock exchange. but i do look at austrailia for mining companies. the shares are down and its prime time to buy and glencore went up 3.9% about a few das ago but thats at lse.
I would have to say, Chinese proposal got beaten by the Japanese Proposal fair and square, if Chinese were to bid on the further project in India, they would probably need to put on a better proposal in order to win contract, these term may works in country without much spare money to spend but not going to work if you want to bid contract in Singapore or Taiwan alike.
its not that im complaning that the tender was unfair. the point im making is that as long as if japan made a good deal, they would get the job. i think you would agree that india is tring to offset china. you do have a point in that countrys that dont have a lot of money would choose the cheapest option.
p.s.
below is not a reliable source
Japan pips China in race to build India's first bullet train : World, News - India Today
regards bm
keep Butthurt comming 
