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‘This is all a facade’: Kashmiris vote in staged election

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In the frost-kissed hamlet of Chewa in northern Indian Kashmir, residents queue up at a secondary school to vote in local elections. “I have never voted before, this is the first time,” said Mohammed Afzal, 38, a painter.

But rather than exercising his political free will, Mr Afzal was casting the first ballot of his life out of fear. The elections, held last weekend, were for the district development council, a rung of local government introduced to the Jammu and Kashmir region by Narendra Modi, India’s Hindu nationalist prime minister.

New Delhi is trying to cast the election as an unofficial referendum on its efforts to bring the heavily militarised, Muslim-majority region under tighter central control and tried its best to make sure locals voted.

Mr Modi’s government last year stripped Jammu and Kashmir of its special status as a state and placed it under New Delhi’s direct rule as a so-called “union territory”.

His ruling Bharatiya Janata party maintains integrating Kashmir into the rest of the country will help end decades of conflict, a legacy of partition in 1947 when India and Pakistan went to war over the former Himalayan kingdom.

According to the BJP, the polls are proof that normalcy is returning to the valley, with each vote a tacit endorsement of the abrogation of 370, the article of the Indian constitution that gave the Jammu and Kashmir region limited autonomy.

But this is anathema to Kashmiris who say they are being subjugated by Mr Modi’s government. “Our basic demand is we want 370 back,” said Mr Afzal.

The Financial Time was part of a small delegation of international media invited to visit Kashmir last weekend on a tightly controlled, government-organised trip to cover the election. Foreign journalists have been barred from reporting in the region.

Critics said the elections for the 280-seat council, which brings together representatives from Jammu and Kashmir’s 22 districts, are an exercise in propaganda since the state legislature elections have been postponed since 2018 and the region has lost its statehood.

On Monday, the night before results were to be counted, one of the biggest political groups in Kashmir, the Peoples Democratic Party (PDP) said some of its senior leaders were detained. A local government official said about 40 politicians and activists were held by police on Monday evening on security grounds.

“It is a deep irony for India to call itself a democracy,” said Siddiq Wahid, a Srinagar-based visiting fellow at the Centre for Policy Research in New Delhi. “This is no different than Xinjiang in China.” Beijing has been accused of subjugating Muslim Uighurs in Xinjiang.

Voters queue for the district development council polls in Chewa © Stephanie Findlay/FT

Kashmir is “not at all” like Xinjiang, said a regional BJP spokesman. “Of course democracy is strong, we saw a more than 40 per cent turnout in Kashmir, people participated, that’s a fundamental requirement of democracy. Democracy is here.”

It had snowed in Srinagar, the region’s biggest city ensconced by forested mountains, just days before the election. The serenity of its main tourist attraction, Dal Lake, and its majestic chinar trees stood in contrast to the heavy military presence.

Soldiers with armoured vehicles were stationed on street corners, highways and hills, a reminder of the 1990s when an insurgency raged in the valley. Starved of tourists since abrogation, many shops were closed. 

The BJP won three seats in Kashmir — a feat it has never achieved in any of Kashmir’s 10 districts — for a total of 74 in the whole region, according to the latest numbers on Wednesday morning.

The party was up against the Gupkar Alliance, a coalition of the established regional parties that amalgamated after abrogation, which promises to bring back Article 370 and won 100 seats.

Ghulam Mohammad Mir, a regional BJP spokesman, said even one seat in Kashmir would have been seen as victory for the party. “This is a new thing for Kashmir.”

It is dangerous to work in the Kashmir Valley for the BJP, whose policies critics say cater to the country’s Hindu majority, undermining Muslims and tarnishing India’s democratic credentials.

Mr Mir, 68, has four personal guards and seven more protecting his house. He said many party workers have been killed by Pakistan-sponsored jihadi groups.

Still, he said he was determined to “inculcate” Kashmiris with the party’s ideology and promised development to remedy unemployment in the state. Article 370 was never coming back, said Mr Mir. “No one on earth can restore it.”

Mainstream politicians used to straddle the middle ground between separatists and New Delhi. But the shock of abrogation and clampdown on dissent humiliated the local pro-India politicians.

Post-abrogation, the battle lines have crystallised: either you are with New Delhi or against it. “The Indian constitution does not permit separatism,” said BVR Subrahmanyam, Jammu and Kashmir administrator chief secretary. “Technically anyone in India who says Kashmir is a disputed territory is actually committing sedition, there is no doubt about that.”

Facing a powerful state and feeling betrayed by their politicians, Kashmiris are alienated and afraid. On the last day of the district polls, most people were wary of talking to the press, saying they feared retribution.

A mural near Patal Bagh, a village in the Pulwama district of Kashmir © Stephanie Findlay/FT

In some polling stations, there were twice as many soldiers as there were voters and the internet was shut off.

“For now the fight is about 370 but the ultimate goal is freedom from India,” said a manual labourer in Chewa. As he was talking, six troops walked over to monitor the interview, forming a ring around him.

Growing uncomfortable, he took his leave. “This is all a facade,” he said about the polls. “We have been living under oppression for so long and it will continue.” 

With additional reporting by Muhammad Raafi





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Toyota faces Thai bribery probe over tax dispute

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Toyota is under investigation in Thailand over allegations that consultants hired by the world’s largest carmaker tried to bribe local officials in a tax dispute, according to Thai authorities, court documents and a person with knowledge of the matter.

The probe followed a filing last month in which Toyota revealed that it had reported “possible anti-bribery violations” related to its Thai subsidiary to the US Department of Justice and Securities Exchange Commission.

Toyota is one of the biggest foreign investors in Thailand, where it makes a large range of cars, vans and pick-up trucks for the local market and for export. The country is Toyota’s biggest manufacturing hub in south-east Asia. Prior to the Covid-19 pandemic, car sales had been strong in a market, where it has a 31 per cent share.

This month, Thailand’s Court of Justice said in a statement that it would take action against any of its judges found to have taken bribes. The statement, which the court described as a move to “clarify facts” in a news report on a foreign website, directly referenced a tax dispute involving Toyota.

“If the Court of Justice has received information or explicitly found that any judge committed an act of corruption to their duty, whether it is about bribery or not, the Court of Justice will resolutely investigate and punish any action which dishonours judges, undermines the neutrality of the court, or causes society [to] lose faith in the Thai justice system,” it said.

According to the court, the case involved a tax dispute worth Bt10bn ($320m) between Toyota Motor Thailand and tax authorities over imports of parts for its Prius hybrid model. 

The affair dates back to 2015, when Toyota’s Thai subsidiary was accused by local customs authorities of understating taxes by claiming that the imported Prius vehicles were assembled from completely knocked down kits, or imported parts that were later assembled in Thailand.

CKDs would have been subject to a discounted tax rate under a Japanese-Thai free trade agreement, but if the cars were fully assembled before being imported they would have attracted a much higher rate. 

Toyota appealed against a decision by customs authorities to impose a higher duty in 2015, but lost. 

Thailand’s Court of Justice has said that it had accepted a petition to review the case, but had not yet begun hearing it.

In its regulatory filing last month, Toyota warned that the US investigations regarding its Thai subsidiary could result in civil or criminal penalties, but the company has not disclosed any detail on the allegations.

In a statement, Toyota said it was co-operating with the investigations and declined to comment on the tax dispute in Thailand. “We take any allegations of wrongdoing seriously and are committed to ensuring that our business practices comply with all applicable government regulations,” it said.

The SEC and the DOJ declined to comment.



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Boris Johnson cancels India trip after Covid cases surge in country

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UK prime minister Boris Johnson’s trip to India this month has been cancelled as the country battles a new variant and a surge in coronavirus cases that is overwhelming hospitals.

A joint statement by the British and Indian governments said the decision to scrap the visit scheduled for next week was prompted by the “current coronavirus situation”.

The trip, during which Johnson had hoped to discuss the prospects of a closer trading partnership with India, was initially planned to run for four days but had been scaled back. The two leaders will speak remotely instead, with plans to meet in person later this year.

The cancellation came as India’s capital city region has been put under lockdown and authorities have prohibited the use of oxygen except for essential services, as the country battles a surge in coronavirus cases that is overwhelming hospitals.

India continues to set single-day records of coronavirus cases, reporting more than 273,000 new infections and 1,619 deaths on Monday, with the number of new cases growing by an average of 7 per cent a day, one of the fastest rates in any big country.

The surge is believed to be linked to a new B.1.617 variant that was first discovered in the country.

British health officials are investigating whether the variant should be reclassified from a “variant under investigation” to a “variant of concern” following the discovery of 77 cases in the UK.

“To escalate it up the ranking we need to know that it’s increased transmissibility, increased severity, or vaccine-evading, and we just don’t have that yet, but we’re looking at the data on a daily basis”, Dr Susan Hopkins, a senior medical adviser at Public Health England, said on Sunday.

Officials in Delhi announced it would impose a strict lockdown for a week, following Mumbai and other cities that have already placed curbs on movement.

States are running short of beds, drugs and oxygen, leading the central government to restrict use of the gas. “The supply of oxygen for industrial purposes by manufacturers and suppliers is prohibited forthwith from 22/04/2021 till further orders,” the central government said.

Arvind Kejriwal, chief minister of Delhi, said “oxygen has become an emergency” in the region because its quota had been diverted to other states. He warned there were “less than 100 ICU beds” available.

The new restrictions have been imposed even as Prime Minister Narendra Modi and his ruling Bharatiya Janata party have hosted huge political rallies and allowed religious festivals attended by tens of thousands of maskless people in recent weeks.

Amit Shah, India’s home minister, told the Indian Express newspaper that he was “concerned” about the variant and the “surge is mainly because of the new mutants of the virus”. But he was “confident we will win” over the disease and said there was not yet a need to impose a national lockdown.

Bed shortages in India have forced authorities to re-establish emergency coronavirus hospitals in banquet halls, train stations and hotels that had been shut down following the previous peak in September. Crematoriums in the state of Gujarat and Delhi are running 24 hours a day, while cemeteries are running out of burial spaces.

Coronavirus patients have also been struggling to access medicines. More than 800 injections of remdesivir, an antiviral drug commonly used in India as part of Covid-19 treatment, were stolen from a hospital in Bhopal, Madhya Pradesh, at the weekend.

India is also facing a vaccine supply crunch and has frozen international exports of jabs to meet domestic demand. New Delhi pledged on Friday to increase monthly production of Covaxin, a vaccine made by Indian manufacturer Bharat Biotech, to 100m from 10m by September. The government also said last week that it would fast-track the approval of foreign vaccines in an attempt to boost supply and cleared Russia’s Sputnik V for use in the country.

The majority of the more than 120m Indians that have been vaccinated have received the Oxford/AstraZeneca jab manufactured by Serum Institute of India, the world’s largest manufacturer. The Serum Institute has struggled to increase its monthly capacity of more than 60m doses a month due to a fire at its plant earlier in the year and equipment supply shortages from the US.

Additional reporting by John Burn-Murdoch in London





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The limits of China’s taming of tech

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The record fine handed out this month to Alibaba, the Chinese ecommerce giant, was a welcome step toward combating anti-competitive behaviour. The $2.8bn penalty put Alibaba and other tech companies on notice that creating siloed fiefdoms designed to trap customers and merchants within their ecosystems will not be tolerated.

It was addressing a longstanding problem. Many of China’s ecommerce companies operate “walled gardens” that prevent interactions with rival platforms. For example, Alibaba’s Taobao ecommerce app keeps users from paying for goods using the payment app of rival Tencent. Tencent’s social media app, WeChat, prevents clips from being shared directly from ByteDance’s video-sharing app. 

Last week China’s internet and market regulators signalled the seriousness of their intent. They gave tech companies one month to fix anti-competitive practices, telling them to conduct “comprehensive self-inspections” and “completely rectify” problems, following which they would need to publicly promise to abide by the rules. The aim is create a commercially open and competitive internet.

It is tempting to argue that regulators in the west could take a leaf out of China’s book. But to hold China up as an example of competitive best practice would be to ignore the elephant in the room. Although Beijing is giving its monopolistically-minded internet companies — which are almost all private enterprises — a rap on the knuckles, it shows no sign of applying the same standards to vast swaths of the economy that have been dominated by state-owned giants for decades. 

The market dominance of these behemoths of state capitalism is an issue that affects not only domestic competitors but also foreign multinationals that operate in China. A trenchant joint paper last week from the European Council on Foreign Relations, a think-tank, and the Rhodium Group, a consultancy, took aim at the increasingly unfair advantages that this system gives China.

While it is true that China has opened up sectors such as financial services to foreign capital in recent years and allowed foreign brands to win market share in luxury goods and pharmaceuticals, broad sectors of the economy remain fully or partially closed or to overseas investors. 

Often the barriers erected to block or stymie competition are informal. Authorities can deliberately favour domestic companies in public procurement, are more ready to grant approval for licenses, subject foreign firms to arbitrary inspections or require them to re-engineer products to meet idiosyncratic domestic standards.

Such drawbacks are not new. But they are taking on an extra urgency as Chinese companies become leaders in an increasing number of industries and the country’s technological prowess draws level with the US and Europe in a list of industries. The key problem now, says the ECFR/Rhodium report, is that Chinese multinationals are using the advantage of a protected home market to build up resources that they then deploy in competition with western counterparts abroad.

This sets the scene for friction. China should extend its anti-monopolistic scrutiny from its own privately owned internet companies to several state-dominated sectors of its economy, taking care to open to foreign multinationals as much as domestic competitors. If it decides against doing this — as is likely — it will be furnishing Europeans and Americans with ammunition to argue against extending access to Chinese corporations in their own markets.



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