India China Economic Rivalry

India and China are the two emerging global powers, having potential to be the most prestigious nations of the 21st century. But both the countries have different systems and economies with vacillating relations.


China’s expansionary aims and policies have adversely affected its border countries including India. Today, China has border conflicts with each of its neighbour. Every citizen of India recognizes the point that China is the biggest threat to India’s economy, sovereignty, peace and development. The result of this is a big movement being executed by Indians for relinquishing Chinese goods and services at a mass scale. Boycotting Chinese products will not weaken China to a large extent but it will surely send a big message that Indians are united in the rivalry of India and China.


Even today, The Balance of Trade is clearly in favour of China with a surplus of $46.83 Bn in last fiscal year. Boycotting Chinese products will definitely help us in winning this game in the long run and that is least which a citizen can perform. But at national level, decisions of government will be crucial in redefining our national security and economic policies towards China. Indian government took a bold step by banning 59 Chinese applications in India and Indian government has cancelled many agreements and deals with Chinese companies like Indian railways cancelled Rs.471 crores deal with a Beijing firm, orders to BSNL for not using Chinese equipment in its process for network upgrade etc.


But what India really needs is a big, bold and long- lasting policy of national security and integrity. According to ex Union Home and Commerce secretary GK Pillai, “Trade is like warfare. Play it right to your advantage.” Hence, the Government of India needs to impose more non-tariff barriers on Chinese goods, like restriction on import quantities and a long process of custom, quality and health check of products etc. China has always betrayed India even after showing friendly relations with India through president Xi Jinping meets with PM Modi. And now, India should stop creating traps for itself and accept the reality of China and change its entire policy and regulations with it. China organised a secret meeting in UNSC for India’s decision to abort Article 370 from Jammu and Kashmir. China constantly use its veto power in UNSC to avoid any strategic advantage to India and it opposes India at many international platforms like permanent membership in UNSC, Membership in Nuclear Suppliers Group etc. China has always snubbed India’s sovereignty and considering the current situation at Eastern Ladakh, China has clearly broken many provisions of past treaties and agreement between India and China like the agreement of 1996. Hence, the Government of India should change its course with china which includes trade, border issues, international issues like Tibet and South China sea etc.


Undoubtedly, India like the rest of the world is hugely dependent on China for imports and supply chains. China’s share in global GDP has risen from 3% in 2003 to 17% in 2020. India is heavily dependent on china for everything from computers, equipment to a small pin and toys. Sectors like Pharmaceutical, electronics and auto components are entirely dependent on Chinese imports. Even after huge campaigns like ‘Make In India’ and ‘Atmanirbhar Bharat’, India has failed to boost domestic production and setting up industriesin India. But, India has achieved many things through such campaign like becoming second biggest manufacturer of mobile phones attributed to a well laid-out, stable and long-term manufacturing policy. Such policies and targets should be there for other industries and the localisation of manufacturing should be focused as addressed by PM Modi.


China has been the biggest threat to India since independence. China’s economic policies, cheap labour, vast land area and expansionary unethical goals has deprived many countries including India. China provide great subsidies to their industries and export goods at cheapest rate compared to other countries to rule the global market. Rare Earth elements are available in bounty in China and Korea but not with India and China which drives us to import electronics from China. But now, the entire world is working on plans to exit themselves from China and change the global supply chain. As a result of this, a couple of units of Apple Inc. is being shifted to India from China along with LAVA and few more.


India’s biggest political lose against China in history was surely the capture of Tibet by China which created all the border problems for India. To redeem those mistakes of past, India needs a restart with policies aimed at China which includes trade. India is a growing power of the world and China is the biggest threat to its development considering the mal intentions of Chinese for India and the entire World. India should oppose China more like the BRO and win the confidence of the world for making India a manufacturing hub. India’s biggest asset is the cultural unity of its people and the same needs to be proved now.


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