Source: India Times
Haiwainet, June 21st. At present, an ethos of "Boycotting China" is now widespreading all over the India. India Times 20th editorial "We can boy/cott China, but what cost?" suggested that it is without even the slightest benefit or even harmful if we boy/cott China after analysed trade statistics and current India financial situation.
All over India, there are calls for boycotting Chinese products and halting bilateral trade, people are burning Chinese home appliances and commodities, and a union minister even wants to ban restaurants from selling Chinese food. However, closing the doors of Chinese products is not good for India. The following is the reason.
Two years ago, the United States slightly overtook China with an 11.3% share and became India’s largest trading partner. However, China still accounts for 10.6% of India's total trade volume. In fact, if Hong Kong's share in China is included, China is still India's largest trading partner.
On the other hand, India only accounts for 2.1% of China's total foreign trade. According to 2018 data, India ranked 12th, while the United States topped the list with 13.7%. Therefore, the trade war is much more harmful to India than China. According to data from the United Nations Conference on Trade and Development (UNCTAD) in 2018, boycotting Chinese manufacturing may have a huge impact on Indian trade which of 15.3% imported products come from China, and only 5.1% of its exports go to China.
Moreover, China, as the world's factory, is the biggest trade partner of most countries in the world, and India is just take a miniture propotion in the total, which makes the China harm less.
Over the past 20 years, Chinese investment in India has been steadily increasing. According to a report from India, Chinese companies investing in India increased from 21 in 2010 to 48 in 2019, especially China's telecommunications industry has a huge influence in India. Huawei and Xiaomi currently have the largest number of projects operating in India, each with 13 projects. ZTE also has several projects in progress.
The huge contrast is also reflected in the number of visits between the two countries. In 1999, about 80,000 Indians visited China, and now has increased tenfold, reaching 800,000 in 2016, but only 250,000 Chinese visited India in 2017. Although the number of Chinese visits is still steadily increasing, the gap between the two is still very large.
Therefore, turning the dispute between the two countries into an act of boycotting Chinese commodities will not resolve the conflict between the two parties. In addition, due to the blockade measures of the COVID, the Indian economy has contracted significantly in the near future, and any trade war will only further harm India. (Haiwainet Wu Qian)
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