Indian Export to China Sharply Increases; Trade Gap Halves

[S10]

China is buying 8 times as many iron and steel from India as last year. That suggests massive infrastructure spending. Export to India is down by over a quarter, due to restrictions from Indian side.

India’s robust double-digit exports growth to China, coupled with sharp contraction in imports, nearly halved the trade gap between the two trading partners in the first five months of the current fiscal year (2020-21, or FY21) over the same period of 2019-20 (FY20).
The restriction on imports from China, along with the Atmanirbhar Bharat campaign, has shrunk India’s trade deficit with the neighbouring country to $12.6 billion between April and August of FY21, from $22.6 billion in the year-ago period.

India’s trade deficit with China stood at $23.5 billion in the corresponding period of 2018-19 and at $26.33 billion in 2017-18. Exports to China saw sustained double-digit growth for the fourth straight month in August, led by eightfold rise in iron and steel shipments. In the April-August period, outbound shipments to Beijing expanded 27 per cent, compared to 9.5-per cent expansion in the same period last year.

Imports contracted 27 per cent in the first five months to $21.5 billion and shrunk 21 per cent in August alone.

Double-digit rise in exports helps India nearly halve trade gap with China

Exports to China saw sustained double-digit growth for the fourth straight month in August, led by eightfold rise in iron and steel shipments

www.business-standard.com

 

[Figaro]

China is buying 8 times as many iron and steel from India as last year. That suggests massive infrastructure spending. Export to India is down by over a quarter, due to restrictions from Indian side.

Double-digit rise in exports helps India nearly halve trade gap with China

Exports to China saw sustained double-digit growth for the fourth straight month in August, led by eightfold rise in iron and steel shipments

www.business-standard.com

So China retaliates against the US due to restrictions but somehow does nothing against the Indians? Funny how the Chinese government wages a trade war against the most powerful economy and country in the world but somehow doesn't do anything and even increases imports from a country it could squash like a bug economically. I have to say the Chinese government has not been thinking straight at all in 2020. This is like picking a fight with someone who is 1 foot taller than you and 100 pounds heavier versus surrendering to a small 5 year old kid .

 

[S10]

So China retaliates against the US due to restrictions but somehow does nothing against the Indians? Funny how the Chinese government wages a trade war against the most powerful economy and country in the world but somehow doesn't do anything and even increases imports from a country it could squash like a bug economically. I have to say the Chinese government has not been thinking straight at all in 2020.

Trade war doesn't benefit anybody. China needs iron and steel for its infrastructure projects to grow its economy further. It can either buy them from India or Australia. Both aren't too friendly.

 

[Figaro]

Trade war doesn't benefit anybody. China needs iron and steel for its infrastructure projects to grow its economy further. It can either buy them from India or Australia. Both aren't too friendly.

Still does not make any sense. The US slaps a tariffs on China, China retaliates tit for tat. But when India does it, China just accepts it and even buys more? Please tell me where this makes any sense.

 

[S10]

Still does not make any sense. The US slaps a tariffs on China, China retaliates tit for tat. But when India does it, China just accepts it and even buys more? Please tell me where this makes any sense.

China did not retaliate tit for tat. China's retaliation against US is focused on Trump supporting states, mostly on agricultural goods. It took a very calculated and surgical approach to hurt his supporters, and on a much smaller scale.

With India, there aren't many Indian products in China to begin with. Since tariffs are a tax on the consumer, Chinese buyers would actually shoulder the burden. Besides, there is no need to retaliate. China needs those steel and iron. Why slap taxes on its own companies?

Economics and nationalism don't mix. If we need it, then we buy it.

 

[beijingwalker]

Buying up their natural resources is ok.

 

[HostileInsurgent]

Still does not make any sense. The US slaps a tariffs on China, China retaliates tit for tat. But when India does it, China just accepts it and even buys more? Please tell me where this makes any sense.

Because they have no option for it, India and China maybe hostile but god gifted resources are limited to boundaries, they export rare earth metals and we export Iron and Steel.

 

[FuturePAF]

China buying raw materials in the midst of a major downturn in the Indian economy is building up a bargaining chip in a country that could be swayed by such purchases. In a few months or years, China could turn around and threaten to cut off purchases if the LAC standoff heats up again.

China is smart to maintain some leverage, just in case it is needed. The Indian business community will be china’s greatest allies should another round of tensions develop.

 

[CHN Bamboo]

Due to the decline in demand for iron and steel in India, the price of iron and steel products has fallen sharply.
That is why China has increased iron and steel imports from India.

据了解，当前进口钢材市场价格比国产资源低10~20元/吨。截至8月21日，广州市场印度JSW的冷轧板卷基价4690元/吨，相同牌号的柳钢资源价格在4710~4720元/吨。根据贸易商提供的数据，进口钢材资源的成本价比国产资源低200~300元/吨。据分析师介绍，7月份中国进口的板材和坯料占比较高，主要在广州、上海、山东的日照和博兴等市场销售，主要来源是印度卡塔尔钢铁、印度JSW、韩国浦项、韩国现代、日本JFE、越南中钢、俄罗斯新钢等。

中国钢材进口持续增长

中国钢材进口持续增长

finance.sina.com.cn

 

[AViet]

Vietnam's export of iron and steel ingot to China has also increased sharply this year. Before that, Vietnam only import from China, not export, as far as I know.

 

[KurtisBrian]

if the danger of war was real and present then wouldn't products usable for the war effort not be sold?

More likely it is all a show in order get the public to accept the huge wealth transfer to "we can't sell this crap to anybody except live on credit gov'ts" arms dealers and the military.

 

[FairAndUnbiased]

Vietnam's export of iron and steel ingot to China has also increased sharply this year. Before that, Vietnam only import from China, not export, as far as I know.

Vietnam produces carbon steel, not stainless or other advanced alloys. It is worthwhile for China to buy lower cost steels from foreign suppliers while keeping high value advanced alloy production internal.

 

[TheTruth]

Still does not make any sense. The US slaps a tariffs on China, China retaliates tit for tat. But when India does it, China just accepts it and even buys more? Please tell me where this makes any sense.

India doesn't have anything to boycott, really.

I.e. China doesn't have any leverage or influence over India and they might want some in the future.

 

[Place Of Space]

Trade war doesn't benefit anybody. China needs iron and steel for its infrastructure projects to grow its economy further. It can either buy them from India or Australia. Both aren't too friendly.

China has large amount of iron resource reserves. The steel factory need to change the refining facility.

 

[8888888888888]

It's because India is in the SCO, so China is bound by treaty to buy stuff from India. But if India is influence by a non SCO member like USA to do things against the group......