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Whatever happened to the boycott of goods made in China?
Indian households are buying up China-made gadgets and appliances as they work from home and cook more often. While imports from China did contract 17.2 percent compared during the April-November 2020 period, this was relatively lower than the 32.6 percent contraction in the country’s overall import bill.
TINA EDWIN
JANUARY 01, 2021 / 03:18 PM IST
Anti-China sentiment was high following the border tensions early last summer and a call went out across the country to boycott China-made products. The Union government, too, acted to restrict imports of several items such as colour televisions, air-conditioners and tyres, purportedly to promote domestic production of these items, and announced production-linked incentive schemes for select industries to achieve that goal.
True enough, imports from China contracted, but not as much as some sections such as nationalist trade lobbies desired. Imports had also been hit by the country-wide lockdown to contain the COVID-19 pandemic, which led to demand contraction. A bar on the opening of stores selling non-essentials and a restriction on delivery of non-essentials by e-commerce platforms also impacted demand for imported consumer goods, of which China is the largest source.
Yet, imports from China contracted a relatively lower 17.2 percent compared with the 32.6 percent contraction in the country’s import bill during the April-November 2020 period, over the year-ago period, according to data by the department of commerce. It can be argued that the sharper contraction in the nation’s total import bill was due to a decline in oil and gold imports, but the shrinkage was still higher, at 25.6 percent, when these commodities were excluded.
That China is the only or the dominant supplier for many commodities, machinery, electronics, and consumer products, helped that nation’s exports to India despite the border hostilities. People’s need to DIY (do it yourself) also helped drive demand for many goods, including items for personal grooming. That said, policy measures and anti-China sentiment did hurt some Chinese exports to India, among them televisions.
TVs shut out
The restrictions on television imports imposed at the end of July had the desired effect. Imports collapsed as the country headed into the festive season — the contraction in the number of Made in China TV sets reaching the country stood at 51.9 percent in August, 88.5 percent in September, and 99.4 percent in October.
Disaggregated data based on the Harmonised System of Nomenclature (HSN) classification for November is yet to be uploaded by the Department of Commerce. Overall, the number of television sets imported from China contracted 61.6 percent in the April-October period from the corresponding year-ago period, with the value of imports declining by 57.3 percent.
However, it was Vietnam that took a harder hit than China due to the ban, with the number of TV sets imported from that nation contracting 74.9 percent in April-October from the year-ago period, as it is a major supplier of LCD TVs. India imported 1.032 million TV sets in April-October 2020, down 69.9 percent from 3.429 million in the same period a year earlier.
WFH boost for PCs
In contrast to televisions, imports of personal computers, laptops, and tablets from China did relatively well, helped by a surge in demand for upgraded machines, as people continued to work from home and students attended classes online. September and October were good months for PC and laptop imports from China, which rose 27.8 percent and 72.2 percent, respectively, from a year earlier.
A late surge notwithstanding, imports from China contracted 14.9 percent in April-October from a year earlier. This was possibly due to diversion through Hong Kong to avoid regulatory and policy obstacles that Chinese goods faced, something that government officials too suspected. Imports of PCs and laptops from Hong Kong shot up 153.5 percent during the period, and the rise was especially large during the months when imports from China contracted.
As a result, the share of Hong Kong in India’s imports of PCs and laptops soared to 23.4 percent from 9.8 percent, while that of China declined to 65.1 percent from 80.8 percent in the period under review. The combined share of China and Hong Kong saw only a minor change during this period, declining to 88.5 percent from 90.6 percent.
It was also seen that while the volume of imports of computers from China and Hong Kong climbed only 3.3 percent, the value of these imports was up 24.7 percent, an indicator that superior configurations were in demand for work from home and online classes.
After the border conflict with China, traders in India made belligerent calls to boycott Chinese goods. Chinese imports at ports faced delays. The Indian government banned a raft of Chinese apps, including the popular TikTok.
China is India’s largest trading partner, with the trade deficit skewed in Beijing’s favour. China and India had trade worth $52.46 billion in the April-November period. India imported goods worth $38.82 billion and exported $13.64 billion in this period, according to the department of commerce.
Premium on looking groomed
But the anti-China backlash did little to dent the enthusiasm of Indian buyers for some Chinese goods.
The volume of imports of small-value gadgets such as shavers, hair clippers and hair-removing appliances saw a big spurt during the April-October period, as services of salons and beauty parlours were restricted and many people avoided visiting them when they opened for business for fear of contracting Covid-19.
Thus the need for DIY grooming gadgets, necessitated by the need to look good on video calls, rose, and that provided another small boost for Chinese imports. Over 96 percent of electric shavers, 90 percent of hair-removing appliances and 75 percent of hair clippers are sourced from China. The April-October period saw demand for China-made shavers leap 94.1 percent, for hair clippers soar 81.8 percent and hair-removing appliances or epilators rise 23.3 percent from a year ago. Indonesia was the source for about 20 percent of hair clippers, which were more premium compared to those from China.
Masterchef, anyone?
Domestic appliances was another category that provided support for the import of Chinese goods. As people stayed at home without the option of going to restaurants, images and videos shared on social media helped many discover their cooking and baking talents. And that led to investment in gadgets and appliances needed to automate various tasks or to obtain better results.
Thus, from July onwards a strong demand emerged for various electro-mechanical domestic appliances, including whiskers, blenders and choppers. About 90 percent of these imports were sourced from China. Demand for ovens, grillers, roasters and cooking plates also picked up as the festive season began. Imports of these appliances staged a smart recovery, perhaps helped by sales organised by online platforms such as Amazon and Flipkart. Over 99 percent of these appliances were sourced from China.
That was not all. With domestic help kept away due to the pandemic, many better-off households started investing in appliances such as dishwashing machines or upgraded their washing machines. China was a winner in the dishwasher segment too, but second to Turkey, where many European appliance makers have their factories. Imports of dishwashers from China jumped beginning July and look set to narrow the gap with Turkey.
With the economic recovery gathering pace, imports will pick up too. As China is a large source of imports for India, imports are bound to amplify again.
www.moneycontrol.com
Indian households are buying up China-made gadgets and appliances as they work from home and cook more often. While imports from China did contract 17.2 percent compared during the April-November 2020 period, this was relatively lower than the 32.6 percent contraction in the country’s overall import bill.
TINA EDWIN
JANUARY 01, 2021 / 03:18 PM IST
Anti-China sentiment was high following the border tensions early last summer and a call went out across the country to boycott China-made products. The Union government, too, acted to restrict imports of several items such as colour televisions, air-conditioners and tyres, purportedly to promote domestic production of these items, and announced production-linked incentive schemes for select industries to achieve that goal.
True enough, imports from China contracted, but not as much as some sections such as nationalist trade lobbies desired. Imports had also been hit by the country-wide lockdown to contain the COVID-19 pandemic, which led to demand contraction. A bar on the opening of stores selling non-essentials and a restriction on delivery of non-essentials by e-commerce platforms also impacted demand for imported consumer goods, of which China is the largest source.
Yet, imports from China contracted a relatively lower 17.2 percent compared with the 32.6 percent contraction in the country’s import bill during the April-November 2020 period, over the year-ago period, according to data by the department of commerce. It can be argued that the sharper contraction in the nation’s total import bill was due to a decline in oil and gold imports, but the shrinkage was still higher, at 25.6 percent, when these commodities were excluded.
That China is the only or the dominant supplier for many commodities, machinery, electronics, and consumer products, helped that nation’s exports to India despite the border hostilities. People’s need to DIY (do it yourself) also helped drive demand for many goods, including items for personal grooming. That said, policy measures and anti-China sentiment did hurt some Chinese exports to India, among them televisions.
TVs shut out
The restrictions on television imports imposed at the end of July had the desired effect. Imports collapsed as the country headed into the festive season — the contraction in the number of Made in China TV sets reaching the country stood at 51.9 percent in August, 88.5 percent in September, and 99.4 percent in October.
Disaggregated data based on the Harmonised System of Nomenclature (HSN) classification for November is yet to be uploaded by the Department of Commerce. Overall, the number of television sets imported from China contracted 61.6 percent in the April-October period from the corresponding year-ago period, with the value of imports declining by 57.3 percent.
However, it was Vietnam that took a harder hit than China due to the ban, with the number of TV sets imported from that nation contracting 74.9 percent in April-October from the year-ago period, as it is a major supplier of LCD TVs. India imported 1.032 million TV sets in April-October 2020, down 69.9 percent from 3.429 million in the same period a year earlier.
WFH boost for PCs
In contrast to televisions, imports of personal computers, laptops, and tablets from China did relatively well, helped by a surge in demand for upgraded machines, as people continued to work from home and students attended classes online. September and October were good months for PC and laptop imports from China, which rose 27.8 percent and 72.2 percent, respectively, from a year earlier.
A late surge notwithstanding, imports from China contracted 14.9 percent in April-October from a year earlier. This was possibly due to diversion through Hong Kong to avoid regulatory and policy obstacles that Chinese goods faced, something that government officials too suspected. Imports of PCs and laptops from Hong Kong shot up 153.5 percent during the period, and the rise was especially large during the months when imports from China contracted.
As a result, the share of Hong Kong in India’s imports of PCs and laptops soared to 23.4 percent from 9.8 percent, while that of China declined to 65.1 percent from 80.8 percent in the period under review. The combined share of China and Hong Kong saw only a minor change during this period, declining to 88.5 percent from 90.6 percent.
It was also seen that while the volume of imports of computers from China and Hong Kong climbed only 3.3 percent, the value of these imports was up 24.7 percent, an indicator that superior configurations were in demand for work from home and online classes.
After the border conflict with China, traders in India made belligerent calls to boycott Chinese goods. Chinese imports at ports faced delays. The Indian government banned a raft of Chinese apps, including the popular TikTok.
China is India’s largest trading partner, with the trade deficit skewed in Beijing’s favour. China and India had trade worth $52.46 billion in the April-November period. India imported goods worth $38.82 billion and exported $13.64 billion in this period, according to the department of commerce.
Premium on looking groomed
But the anti-China backlash did little to dent the enthusiasm of Indian buyers for some Chinese goods.
The volume of imports of small-value gadgets such as shavers, hair clippers and hair-removing appliances saw a big spurt during the April-October period, as services of salons and beauty parlours were restricted and many people avoided visiting them when they opened for business for fear of contracting Covid-19.
Thus the need for DIY grooming gadgets, necessitated by the need to look good on video calls, rose, and that provided another small boost for Chinese imports. Over 96 percent of electric shavers, 90 percent of hair-removing appliances and 75 percent of hair clippers are sourced from China. The April-October period saw demand for China-made shavers leap 94.1 percent, for hair clippers soar 81.8 percent and hair-removing appliances or epilators rise 23.3 percent from a year ago. Indonesia was the source for about 20 percent of hair clippers, which were more premium compared to those from China.
Masterchef, anyone?
Domestic appliances was another category that provided support for the import of Chinese goods. As people stayed at home without the option of going to restaurants, images and videos shared on social media helped many discover their cooking and baking talents. And that led to investment in gadgets and appliances needed to automate various tasks or to obtain better results.
Thus, from July onwards a strong demand emerged for various electro-mechanical domestic appliances, including whiskers, blenders and choppers. About 90 percent of these imports were sourced from China. Demand for ovens, grillers, roasters and cooking plates also picked up as the festive season began. Imports of these appliances staged a smart recovery, perhaps helped by sales organised by online platforms such as Amazon and Flipkart. Over 99 percent of these appliances were sourced from China.
That was not all. With domestic help kept away due to the pandemic, many better-off households started investing in appliances such as dishwashing machines or upgraded their washing machines. China was a winner in the dishwasher segment too, but second to Turkey, where many European appliance makers have their factories. Imports of dishwashers from China jumped beginning July and look set to narrow the gap with Turkey.
With the economic recovery gathering pace, imports will pick up too. As China is a large source of imports for India, imports are bound to amplify again.
Whatever happened to the boycott of goods made in China?
Indian households are buying up China-made gadgets and appliances as they work from home and cook more often. While imports from China did contract 17.2 percent compared during the April-November 2020 period, this was relatively lower than the 32.6 percent contraction in the country’s overall...
