We can boycott China, but at what cost?

[beijingwalker]

We can boycott China, but at what cost?
Atul Thakur

Jun 20, 2020

Atul Thakur
TNN
Jun 20, 2020, 14:54 IST

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Across the country there are calls to boycott goods made in China, but does it really help India?
India is angry after bloody clash on June 15 between Indian and Chinese troops at Galwan. Across the country, there are calls to boycott Chinese products and halt bilateral trade, with people burning Chinese appliances and goods and a Union minister even wanting a ban on restaurants selling Chinese food. WhatsApp forwards are further stoking this sentiment. However, shutting the door on Chinese products now will not benefit India. Here's why.

China is India's second-largest trade partner...

Two years ago, the United States edged past China to become India’s biggest trading partner at 11.3%. However, China still accounts for 10.6% of our trade. Together with Hong Kong, it is actually our largest trading partner by a wide margin.

...but India is one of China’s smaller partners
India accounts for only 2.1% of Chinese trade, and is in 12th place based on figures in 2018 . US tops the list at 13.7%. A trade war will, therefore, hurt India much more than China.

Boycott could hit India’s trade in a big way
According to United Nations Conference on Trade and Development (UNCTAD) data for 2018, 15.3% of India’s imports are from China, and 5.1% of India’s exports go to China, Despite the huge trade imbalance, it is difficult to say whether Chinese imports harm India, since, for instance, Chinese chemicals are used to manufacture drugs, which are exported to other countries.

China won’t feel the pain of Indian boycott

On the other hand, as the world’s ‘factory’, China is among the largest trade partners of almost all countries. India has only a small share in its exports and imports, so its boycott will not hurt China much.

India could lose out on Chinese investments
Chinese investment in India has been increasing steadily over the past two decades. The number of Chinese companies investing in India increased from 21 in 2010 to 48 in 2019, according to a report by fDimarkets.com, which tracks cross-border FDI investments.

Some 225 Chinese companies have invested in India between 2003 and 2020. The Chinese telecom industry, in particular, has a large presence in India. Huawei and Xiaomi currently have the highest number of projects operating in India, at 13 each. ZTE and Vivo each have 5 ongoing projects.

8 lakh Indians visit China every year, just 2.5 lakh Chinese come to India
The skewed trade balance is also reflected in Indians’ visits to China. In 1999, about 80,000 Indians had visited China. This increased tenfold to reach 8 lakh in 2016 — the year for which latest data is available. In 2017, 2.5 lakh Chinese visited India. Although there is a steady increase in their visits, the gap is still vast.

Turning the border dispute into a boycott of Chinese goods is thus unlikely to resolve the situation. Moreover, the Indian economy is already set to contract in fiscal year 2020-2021 due to the coronavirus lockdown halting economic activity, any trade war will only hurt India further.
https://timesofindia.indiatimes.com...ina-but-at-what-cost/articleshow/76477740.cms

 

[Gadkari]

You probably know that I used to be a great supporter of India china relationship.

But after reviewing the direction china is taking, I am of the opinion that it is foolish to court china anmore.

It is better to be distant from china for our own well being. Neither be a friend, nor be a enemy.

Become strong enough so that they never dare to be your enemy and work to build allies in the neighborhood to ensure peace.

I am glad this confrontation took place. It always takes something big to jolt India into action and find alternatives for chinese goods (one of the problems with Democracies ).

I just hope India does not fall asleep and forget this lesson.

 

[beijingwalker]

If India is content to be a tiny player in global trade, be my guest

China Dominates Asian Trade

 

[Leishangthem]

China has a lot more to lose by trading with India in the long run,Indian politicians will use all their resources to stake claim over Aksai china for political points and to oppose china,because Indians has been taught China was the one that provoked and occupied Aksai Chin illegally.So,from Indian perspective, China will remain the hostile occupier of Indian territory for eternal unless fixed from within.

Indians can't be reasoned with and that's not just because of average low IQ .Indians are too thick in head to understand where they stand and the 1.4b people may force the gov to act irrationally under pressure in a suicidal manner.
Making India rich with investment is only gonna create more Galwan incident like situations for china.And after stealing know how they will discard chinese companies.
I

 

[Gadkari]

If India is content to be a tiny player in global trade, be my guest

China Dominates Asian Trade

India being a tiny player has little to do with China. it has more to do with our own lack of economic freedom to pursue entrepreneurship in India.

For all his nationalism, Modi has failed to reform India and boost our economic performance.

Indian business landscape is full of mines and bureaucratic hurdles that make doing business only possible for the strongest mind and the most ruthless.

This combined with lack of liquidity and cost of capital and poor infrastructure that raise cost of doing business makes India a economic basket case.

Modi inherited this, but he did precious little to make it better for the ordinary citizen and businessmen.

In that aspect Xi Jinping has done a stellar job though I am not sure how much of it is due to his own ability and due to the ability of his support team / local govt.

 

[Taimoor Khan]

You probably know that I used to be a great supporter of India china relationship.

But after reviewing the direction china is taking, I am of the opinion that it is foolish to court china anmore.

It is better to be distant from china for our own well being. Neither be a friend, nor be a enemy.

Become strong enough so that they never dare to be your enemy and work to build allies in the neighborhood to ensure peace.

I am glad this confrontation took place. It always takes something big to jolt India into action and find alternatives for chinese goods (one of the problems with Democracies ).

I just hope India does not fall asleep and forget this lesson.

It's all good to act macho on keyboard but who's going to bell the cat. If you include Hongkong, which you should, China is your biggest trade partner in the world.

It's another east India company situation, where they first get hold economically and then comes the military part. Have we just seen the start of that military aspect in Laddakh?

 

[Gadkari]

-

It's all good to act macho on keyboard but who's going to bell the cat. If you include Hongkong, which you should, China is your biggest trade partner in the world.

It's another east India company situation, where they first get hold economically and then comes the military part. Have we just seen the start of that military aspect in Laddakh?

India is taking serious steps to cut down trade with china and that is in our best Interest.

Like disqualifying Chinese Metro to participate in Indian city tenders.

Or Restrict Chinese Firms From Participating In 7,500 MW Ladakh Solar Power Project.

Or disqualifying them from infra projects to build roads, bridges and tunnels.

Which means all these contracts will now go to Indian firms , though at a slightly higher cost.

For example, Chinese used to bid for Metro projects by bidding 5 crores per car, as compared to 8-10 crores which Indian firms quoted. They did that to drive Indian companies out of business using funding by the Chinese govt. that came in various ways like subsidy or low capital cost. I have posted an article about how they drove Nortel into bankruptcy in Canada using the same model.

Indian telcom companies have been advised to avoid chinese equipment makers too.

So on an so forth.

This was a wake up call for us and hopefully Modi govt. has wowken up and will take real steps to put an end to this chinese economic invasion too.

and yes, its only going to make India stronger.

 

[beijingwalker]

-

India is taking serious steps to cut down trade with china and that is in our best Interest.

Like disqualifying Chinese Metro to participate in Indian city tenders.

Or Restrict Chinese Firms From Participating In 7,500 MW Ladakh Solar Power Project.

Or disqualifying them from infra projects to build roads, bridges and tunnels.

Which means all these contracts will now go to Indian firms , though at a slightly higher cost.

For example, Chinese used to bid for Metro projects by bidding 5 crores per car, as compared to 8-10 crores which Indian firms quoted. They did that to drive Indian companies out of business using funding by the Chinese govt. that came in various ways like subsidy or low capital cost. I have posted an article about how they drove Nortel into bankruptcy in Canada using the same model.

Indian telcom companies have been advised to avoid chinese equipment makers too.

So on an so forth.

This was a wake up call for us and hopefully Modi govt. has wowken up and will take real steps to put an end to this chinese economic invasion too.

and yes, its only going to make India stronger.

We'll see if it is a smart move, China's overall trade with India is very small, it won't have any tangible impact on China's trade, we'll see if the same is also true to Indian trade and economy.

 

[Gadkari]

We'll see if it is a smart move, China's overall trade with India is very small, it won't have any tangible impact on China's trade, we'll see if the same is also true to Indian trade and economy.

It has nothing to do with china's trade, it has everything to do with reducing our trade deficit and improving our local supply chain industry and sectors.

China's behavior was a wake up call which was much needed to energize the nation.

 

[beijingwalker]

China's behavior was a wake up call which was much needed to energize the nation.

I have hundreds of contacts on my Weixin and not even one person talked about China India border brawl, it was not even news worthy in China, the incident can not even make the first page in the news, most Chinese don't even know it happened. How come a border brawl can become such a big deal in India, we can never get it.

 

[Gadkari]

I have hundreds of contacts on my Weixin and not even one person talked about China India border brawl, it was not even news worthy in China, the incident can not even make the first page in the news, most Chinese don't even know it happened. How come a border brawl can become such a big deal in India, we can never get it.

It is a big deal in India because 20 of our Men died fighting to defend Indian rights.

Their blood should not flow in vain. It has to mean something.

Its not big in china because your govt. decided to keep your list of casualties hidden.

Now men die in pakistan India border all the time, but we are conditioned to that. Also Indians do not consider pakistan a serious threat. They are more of a nuisance.

China OTOH IS a threat. One that we should be taking very seriously.

 

[ohmrlobalobayeh]

It is a big deal in India because 20 of our Men died fighting to defend Indian rights.

Their blood should not flow in vain. It has to mean something.

Its not big in china because your govt. decided to keep your list of casualties hidden.

Now men die in pakistan India border all the time, but we are conditioned to that. Also Indians do not consider pakistan a serious threat. They are more of a nuisance.

China OTOH IS a threat. One that we should be taking very seriously.

-

India is taking serious steps to cut down trade with china and that is in our best Interest.

Like disqualifying Chinese Metro to participate in Indian city tenders.

Or Restrict Chinese Firms From Participating In 7,500 MW Ladakh Solar Power Project.

Or disqualifying them from infra projects to build roads, bridges and tunnels.

Which means all these contracts will now go to Indian firms , though at a slightly higher cost.

For example, Chinese used to bid for Metro projects by bidding 5 crores per car, as compared to 8-10 crores which Indian firms quoted. They did that to drive Indian companies out of business using funding by the Chinese govt. that came in various ways like subsidy or low capital cost. I have posted an article about how they drove Nortel into bankruptcy in Canada using the same model.

Indian telcom companies have been advised to avoid chinese equipment makers too.

So on an so forth.

This was a wake up call for us and hopefully Modi govt. has wowken up and will take real steps to put an end to this chinese economic invasion too.

and yes, its only going to make India stronger.

 

[Flash_Ninja]

Now men die in pakistan India border all the time, but we are conditioned to that. Also Indians do not consider pakistan a serious threat. They are more of a nuisance.

Hence why Indian media, politics, and society revolve around Pakistan, and why Indians constantly spend every waking minute on some Pakistani forum or website.

 

[Taimoor Khan]

-

India is taking serious steps to cut down trade with china and that is in our best Interest.

Like disqualifying Chinese Metro to participate in Indian city tenders.

Or Restrict Chinese Firms From Participating In 7,500 MW Ladakh Solar Power Project.

Or disqualifying them from infra projects to build roads, bridges and tunnels.

Which means all these contracts will now go to Indian firms , though at a slightly higher cost.

For example, Chinese used to bid for Metro projects by bidding 5 crores per car, as compared to 8-10 crores which Indian firms quoted. They did that to drive Indian companies out of business using funding by the Chinese govt. that came in various ways like subsidy or low capital cost. I have posted an article about how they drove Nortel into bankruptcy in Canada using the same model.

Indian telcom companies have been advised to avoid chinese equipment makers too.

So on an so forth.

This was a wake up call for us and hopefully Modi govt. has wowken up and will take real steps to put an end to this chinese economic invasion too.

and yes, its only going to make India stronger.

LOL


And who you are going to replace the trade with? America?

 

[Gadkari]

Hence why Indian media, politics, and society revolve around Pakistan, and why Indians constantly spend every waking minute on some Pakistani forum or website.

Media does it because it wants to get viewership.

India pakistan fight is like a saas bahu serial. It gets the eyeballs.

Then there is terrorism which is a real thing and which makes every Indian furious.