India-China Buy-Buy

[TechLahore]

I gonna have to research for it! Would you mind waiting or you can as well let us know as we seem to be more informative. I'd appreciate a neutral analysis from you.

I'll give you Reuters data... Deals worth $16B were signed. Hardly anything worth mentioning represents Chinese investment in India; a mere $2B over 5 years. The rest is all Indian companies importing more stuff from China or taking loans from Chinese banks.

$8.3B of further imports from China (generators)
$2B of loans from China by Reliance
$1B financing agreement with ICICI
$1.4B purchase of 2,000MW power plant
$2.5B of power plant equipment purchases by Abhijeet Ind
$2B investment by Huawei over 5 years

UPDATE 1-FACTBOX-China, India deals in focus during Wen's visit | Reuters

 

[LaBong]

Why so dramatic? I don't know of oaths taken in secret, so why comment on such things...

As I tried to point out earlier, much of what India is importing from China are India's own resources (eg. ore) with value-added in China. This is not a very good arrangement for India. China has the upper hand and in fact the trend going forward (200+% growth in India's steel imports from China) actually indicates that the arrangement is getting further skewed in China's favour.

I'm not sure why import of steel is being seen as bad thing, in the end it'll only help us to achieve rapid acceleration in growth. India still is 5th largest steel producer and growing at 7.5% rate. India will have to import from China to sustain it's growing demand as China tops the producer's list and that too by a heavy margin.

 

[TechLahore]

I think China too imported steel in bulk few years back during their Olympics construction spree. Mittal was one of the biggest beneficiary out of it.

Was that an Indian export? ArcelorMittal is not an Indian company, as you know.

 

[SpArK]

Indian ore shipments to China stood at 5.34 million tonnes in November, 2010.

 

[TechLahore]

Indian ore shipments to China stood at 5.34 million tonnes in November, 2010.

Yes. Ore. Not steel.

 

[LaBong]

I'll give you Reuters data... Deals worth $16B were signed. Hardly anything worth mentioning represents Chinese investment in India; a mere $2B over 5 years. The rest is all Indian companies importing more stuff from China or taking loans from Chinese banks.

$8.3B of further imports from China (generators)
$2B of loans from China by Reliance
$1B financing agreement with ICICI
$1.4B purchase of 2,000MW power plant
$2.5B of power plant equipment purchases by Abhijeet Ind
$2B investment by Huawei over 5 years

UPDATE 1-FACTBOX-China, India deals in focus during Wen's visit | Reuters

Generators, power plants all aim to sustain the growing energy demand. Why do you think they are not worth mentioning? It's important to be able to capable of sustaining our energy demand by ourselves but anyway, be it thermo generators from China or nuke reactors for France, we need all resources gathered up to achieve an industrial boom.

 

[SpArK]

India?s steel demands spell less iron ore for China - Economy and Politics - livemint.com

 

[TechLahore]

Generators, power plants all aim to sustain the growing energy demand. Why do you thing they are not worth mentioning? It's important to able to capable of sustaining our energy demand by ourselves but anyway, be it thermo generators from China or nuke reactors for France, we need all resources to achieve an industrial boom.

If you go back and read your own question to me, it was focused on Chinese *INVESTMENTS* in India. For all practical purposes, none were inked save the Huawei deal.

All these other items are loans taken from China by India and imports of Chinese goods by India. How you use these loans or imports etc. is a different issue. The topic of discussion is China-India trade and investment, and specifically the balance of trade.

 

[LaBong]

Was that an Indian export? ArcelorMittal is not an Indian company, as you know.

Because Mittal is investing heavily in India. If they become rich we are also profitable in a way.

 

[TechLahore]

India?s steel demands spell less iron ore for China - Economy and Politics - livemint.com

Iron ore exports to China: India loses to newer markets -- The Hindu
The Hindu : Business : Iron ore exports to China: India loses to newer markets

 

[jayron]

Was that an Indian export? ArcelorMittal is not an Indian company, as you know.

I am not talking about Indian export but just justifying what India is doing. ie., importing steel during a construction boom .

Mittal's plant in Karnataka and proposed Posco plant in Orissa will hopefully lessen steel imports.

 

[TechLahore]

Because Mittal is investing heavily in India. If they become rich we are also profitable in a way.

Ah! But wouldn't you say that's a different topic altogether. Mittal's sales are not India's exports. That is what we were talking about.

Bestway UK is a giant retailer owned by Sir Anwar Parvaiz, who hails from Pakistan. I wouldn't count the billions of pounds of Bestway revenue as Pakistan's exports.

 

[LaBong]

If you go back and read your own question to me, it was focused on Chinese *INVESTMENTS* in India. For all practical purposes, none were inked save the Huawei deal.

All these other items are loans taken from China by India and imports of Chinese goods by India. How you use these loans or imports etc. is a different issue. The topic of discussion is China-India trade and investment, and specifically the balance of trade.

By investment do you mean FDI? I don't think China is yet at a position where she can afford making extensive investment in India competing with first world countries. Also there is some needless precaution against Chinese companies in GoI's part.

Anyway, Huawei is a good deal, more deals will be coming for certain as I trillion will be spend on infra, it's a win-win game for both India and China and so far both the parties refrained from the border dispute to affect the trade relation.

 

[TechLahore]

By investment do you mean FDI? I don't think China is yet at a position where she can afford making extensive investment in India competing with first world countries. Also there is some needless precaution against Chinese companies in GoI's part.

Come now! You can do better than that. If "China is not in a position to make extensive investments", what was Premier Wen doing in Pakistan?

And by the way, Chinese foreign investment in 2010 alone exceeded $50B!

China investment overseas to top 50 billion dollars in 2010 - LANKA BUSINESS ONLINE

Anyway, Huawei is a good deal, more deals will be coming for certain as I trillion will be spend on infra, it's a win-win game for both India and China and so far both the parties refrained from the border dispute to affect the trade relation.

Trade between India and China as it stands is NOT a win-win game. Please read the first post again - that is what the article alludes to.

 

[LaBong]

Ah! But wouldn't you say that's a different topic altogether. Mittal's sales are not India's exports. That is what we were talking about.

Bestway UK is a giant retailer owned by Sir Anwar Parvaiz, who hails from Pakistan. I wouldn't count the billions of pounds of Bestway revenue as Pakistan's exports.

If we are discussing the trade inequality between India and China then it's a different ball game altogether. I think China have an upper hand on all the countries when it comes to trade. We however trying to contribute more to the trade relation between India and China and as Premier Wen suggested, China will also act with benevolence as she is e the elder in trade relation.