India-China border dispute: how difficult it is for India to buy Chinese goods
Protests took place in different states of India on Wednesday against the death of Indian soldiers in a clash with Chinese soldiers in the Galvan Valley of Ladakh.
• Local businessmen in Siliguri, a major industrial city of West Bengal, also decided to rename the famous Hong Kong Market.
• The same was true of Ahmedabad city of Gujarat. A video is becoming increasingly viral on social media, in which the public is seen breaking the TV of the Chinese company.
• In Delhi, the Confederation of All India Traders launched a new campaign called ‘Indian goods our pride’. Along with this, it has been appealed to film stars not to advertise Chinese goods.
• According to news agency Reuters, Chinese mobile company OPPO on Wednesday canceled the online launching program in India.
How much is it possible to call Chinese goods bye-bye
To know and understand this, it is important to know what China sells to India. And what does China buy from India.
The things China sells to India are:
• Telecom Equipment
• Electrical Equipment
• Organic Chemicals
China exists somewhere, in some form or another, in India’s kitchens, bedrooms, in the form of air conditioning machines, mobile phones and digital valets.
“Get something new, get something cheap and get something very beautiful” When every customer demands it, the merchant has no option but to buy Chinese goods.
So whether it is Sadar Bazaar in Delhi or Hong Kong Market of Siliguri in West Bengal, all the Chinese goods are packed.
There is also a truth that Chinese smartphone brands like Oppo, Xiaomi are eight out of every ten selling smartphones in India.
In such a situation when the news of quoting central government sources in Indian media that BSNL and MTNL have been ordered to stop using Chinese devices for 4G, then a question arises as to how feasible this is . Therefore, know how much China’s investment in India is.
China has invested more than six billion foreign direct investment in India while its investment in Pakistan is more than 30 billion dollars.
The Gateway House, a Mumbai-based foreign affairs think tank, has identified 75 companies in India that invest in services such as e-commerce, fintech, media / social media, aggregation services and logistics, and China.
Its recent report has revealed that China has a major stake in 18 out of 30 unicorns of India. Unicorn is called a private startup company which is worth a billion dollars.
The report says that due to the nature of investment in the technology sector, China has taken control of India.
ByteDance, for example, is the parent company of Tikok, which is from China and is very popular in India as compared to YouTube.
The Indian government was a little cautious on strategic Chinese investment. Recently, it postponed its new Foreign Direct Investment (FDI) policy, saying that all investments in landlocked countries with India would need approval before investment.
China has more advantages in business
How the business has increased between India and China can be gauged from the fact that in the beginning of this century, in 2000, the trade between the two countries was only three billion dollars, which increased to $ 51.8 billion in 2008 alone.
In this way, China became India’s largest trading partner in terms of goods replacing America.
In 2018, the trade relations between the two countries reached new heights and the trade between the two countries was $ 95.54 billion.
Business is growing, it does not mean that both are getting equal.
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According to the website of the Indian Ministry of External Affairs, in 2018, India China had a turnover of $ 95.54 billion, but the goods exported by India in it were worth 18.84 billion dollars.
This means that China bought less goods from India and sold more than four times that amount. In such a situation, China has benefited more in this business.
India’s goods imported to China
The main things that India sells to China are:
- Cotton means cotton
- Copper means copper
- Diamond and other natural gemstones
- The medicines
- IT services
- Engineering services
Apart from this, India also sells rice, sugar, many fruits and vegetables, meat products, cotton yarn and cloth.
Another thing that is worth noting here is that for many goods that we sell to other countries, we also buy raw materials from China, such as medicines.
But it is also true that there is a lack of balance in trade between China and India. If India is facing the biggest trade deficit with any country then it is China.
That is, India is buying more goods than China and there is very little selling against it.
In 2018, India had a trade deficit of $ 57.86 billion with China.
It is clear that before buying the Chinese goods, India will have to find other cheap alternatives.