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Trade war looming between India-China: Chinese state media

Discussion in 'World Economy' started by lca-fan, Aug 14, 2017.

  1. lca-fan

    lca-fan Major SENIOR MEMBER

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    Trade war looming between India-China: Chinese state media
    PTI| Aug 14, 2017, 04.15 PM IST

    [​IMG]
    The article said that China "could easily retaliate" with restrictions on Indian products, but added that it "doesn't make much economic sense" for the country.


    BEIJING: A trade war seems to be looming between India and China after New Delhi imposed anti-dumping duties on 93 Chinese products amidst a military standoff in Doklam area, two state media reports here said today.

    An article in The Global Times, part of the ruling Communist Party's publication group, urged Chinese firms to "reconsider the risks" of investing in India and warned New Delhi to be "prepared for the possible consequences for its ill-considered action."

    The article said that China "could easily retaliate" with restrictions on Indian products, but added that it "doesn't make much economic sense" for the country.

    It cited figures from the Indian embassy in China to show that Indian exports fell by 12.3 per cent year-on-year to USD 11.75 billion while India's imports from China rose by 2 per cent to USD 59 billion, resulting in a trade deficit of USD 47 billion.

    According to the Indian Commerce Ministry, the trade deficit with China last year mounted to over USD 52 billion when the bilateral trade stood at USD 70 billion.

    "A trade war between China and India seems to be looming after the latter moved last Wednesday to impose anti-dumping duties on 93 products from China," the report said.

    "If India really starts a trade war with China, of course China's economic interests will be hurt, but there will also be consequences for India," it said.

    The report on trade comes as India and China have been locked in a tense military standoff in Doklam in the Sikkim sector.

    India has protested the construction of a road by the Chinese military in the area claimed by its ally Bhutan, fearing it would allow Beijing to cut off India's access to its northeastern states.

    The Global Times report warned that "given the tense bilateral trade ties, China may consider temporarily suspending investment or economic cooperation projects in India to ensure the security of these investments."

    Another article in China Daily said boycotting Chinese goods would harm India.

    Referring to the calls of boycott of Chinese products, it said the ongoing standoff in Doklam seems to have spilled over into bilateral exchanges.

    "Suffice to say, calling for the boycotting of Chinese products and those related to Chinese investors is not just a fool's errand but also risks backfiring," it said.

    "It is the Indian economy that will suffer because of the boycott," it said.

    Any attempt to keep Chinese cellphone companies at bay or shut down Chinese-invested factories will hurt the Indian economy and cost Indian jobs, it said.

    http://economictimes.indiatimes.com...ofinterest&utm_medium=text&utm_campaign=cppst

    @Levina @Abingdonboy @nair@MilSpec @Gessler @Robinhood Pandey @randomradio @vstol jockey @Hellfire @NS52 @BlackOpsIndia @Rain Man @Grevion @Nilgiri @GSLV Mk III @SrNair @dadeechi @Ankit Kumar 001 @kaku1 @Golden_Rule @IndiranChandiran @Lion of Rajputana @thesolar65 @Sathya @Butter Chicken @AbRaj @Agent_47 @bharathp @Aqwoyk @GuardianRED @PeegooFeng41 @Indx TechStyle @Ved Mishra @ni8mare @A_poster @Kalmuahlaunda @zebra7 @Marqueur @PARIKRAMA
     
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  2. lca-fan

    lca-fan Major SENIOR MEMBER

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    Doklam was always about CPEC & OBOR as @vstol jockey mentioned the whole idea of CPEC & OBOR was capturing markets and India is the biggest market which can actually fund CPEC & OBOR. If India doesn't joins it, ti will fail and China will be saddled with losses and their whole economy which is now house of cards will come spiraling down............ That's the reason China is annoyed with India and wants to teach a lesson a-la 1962 but current GOI has given Chinese SHOCK of their life.........
     
  3. Agent_47

    Agent_47 Admin - Blog Staff Member MODERATOR

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    Are we missing something about this nation's culture w.r.t the urge to warn everyone ? Its so cringe worthy these days.
     
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  4. A_poster

    A_poster Captain FULL MEMBER

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    What is China gonna do? Ban import of Iron-Ore from India!:chilli: Guess what! India is trying to cut down on raw material export anyway.

    These slant eye chibots do not understand that by not allowing Indian IT and Pharma to operate in China, they have forgo creation of any leverage on India. India has no qualms in entering a trade war with China because we are not making money off China anyway. This is in contrast to USA, which if threaten Indian with sanctions, could make India yield, unless demand is humiliating.
     
    Last edited: Aug 14, 2017
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  5. lca-fan

    lca-fan Major SENIOR MEMBER

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    US President Donald Trump ponders trade war with China
    Trump has ordered a review of Chinese trade practices that force foreign firms to partner with Chinese firms. This comes shortly after he praised Beijing for its support of harsher UN sanctions on North Korea.

    [​IMG]


    While US President Donald Trump presses China to step up pressure against North Korea, he is considering sparking a trade war with the world's second largest economy.

    On Monday, Trump plans to sign an executive order asking his trade office to investigate China for its alleged theft of American technology and intellectual property.

    could lead to US sanctions against Beijing.

    Still, Trump praised China Friday for supporting the recent UN vote to ratchet up sanctions against North Korea. In a phone call with Chinese President Xi Jinping, the two leaders reaffirmed their shared desire for a nuclear-free Korean peninsula.

    Trump, however, also informed Xi about the pending probe into China's trade practices, according to two US officials with knowledge of the conversation. They spoke on condition of anonymity as they were not authorized to discuss the private call.

    [​IMG]
    The Trump administration suspects China of appropriating US know-how

    Access to China

    In particular, Trump wants an examination of Chinese trade practices that force American companies to share their intellectual property if they want access to the world's second largest economy.

    US businesses are often forced to create joint ventures with a Chinese partner and turn over valuable technology assets, a practice the White House claims stymies US economic growth.The latest review will be conducted by the US trade representative under the Trade Act of 1974.

    Depending on the results, the US could either seek remedies through the World Trade Organization or outside of it.

    All eyes on Xi-Trump summit in Florida

    China under US scrutiny

    "China also funds and facilitates the acquisition of US firms that possess advanced technologies," US officials said.

    They added, "If Americans continue to have their best technologies and intellectual property stolen or forcibly transferred off-shore, the United States will find it difficult to maintain its current technology leadership position."

    Chinese commercial policy aimed to acquire and absorb the intellectual property of the United States and other countries around the world, according to the officials.

    China's foreign and commerce ministries did not immediately respond to requests for comment Sunday.

    The Trump administration is already investigating Chinese commercial practices on several fronts, notably whether steel and aluminum imports were jeopardizing national security.

    On Tuesday, Washington announced preliminary sanctions against imports of Chinese aluminum foil.

    http://www.dw.com/en/us-president-donald-trump-ponders-trade-war-with-china/a-40072810

    Dragon ki Lag Gayi..........

    Are US and India working together to kill Dragon forever..........
     
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  6. lca-fan

    lca-fan Major SENIOR MEMBER

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  7. Ankit Kumar 001

    Ankit Kumar 001 Major Technical Analyst

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    There should be 100% ban on import of anything from pAKISTAN and cHINA ,on all types of food products, all type of textile products and anything which is made in India.

    Even if the production is only 10% of the whole consumption.
     
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  8. lca-fan

    lca-fan Major SENIOR MEMBER

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    Indian Govt. Imposes Anti-Dumping Duty On 93 Chinese Products; Counters China’s Aggression
    Mobile Phones May Become Expensive
    [​IMG]By Mohul Ghosh On Aug 10, 2017
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    [​IMG]

    China’s aggression, at least in business and commerce, has been counter checked by Indian Govt. In a response to a question, Commerce and industry minister Nirmala Sitharaman informed the Rajya Sabha that India has imposed anti-dumping duty across 93 Chinese products.

    Besides, Directorate General of Anti-Dumping and Allied Duties has initiated investigation across 40 cases of dumping by Chinese exporters, and action would be soon taken against them.

    She said, “Anti-dumping duty is in force on 93 products concerning imports from China,”

    She also informed that imports from China during 2016-17 marginally dropped to $61.28 bn, from $61.7 bn a year back.

    As per the reply given by the Minister, the products wherein anti-dumping duty has been imposed are part of these categories: chemicals and petrochemicals, products of steel and other metals, fibres and yarn, machinery items, rubber or plastic products, electric and electronic items and consumer goods.

    Electronic items and consumer goods are also included in the anti-dumping duty list, which means that Chinese mobile phone prices sold in India may go up in coming days.

    What Is Anti-Dumping Duty?
    In the world of economics, Dumping is a predatory pricing, especially in the sectors of imports and exports.

    Dumping happens when a manufacturer or exporter sells a products to another country at a price which is lower than the original manufacturing cost, or lower than the price of the same product in the home country.

    Say Chinese manufacturer called ABC Inc. makes water bottles, which each costs Rs 15 to make. ABC Inc. sells the same water bottles for Rs 20 in China, thereby making a profit of Rs 5.

    However, now they want to sell the same product in Nepal, and aims to grab a market share.

    Read More
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    ABC Inc. enters Nepal, and sells the same water bottle for Rs 10. Now, this selling price is lower than what it is selling for in China, and certainly lower than any water bottle being sold in Nepal.

    In such case, the Govt. of Nepal can impose anti-dumping duty on the water bottles being sold by that Chinese manufacturer in Nepal. When this happens, then an additional charge is imposed on those products where anti-dumping duty is being imposed.

    Hence, naturally, the cost of the product may increase, if the manufacturer doesn’t reduce the price.

    Anti-Dumping Laws in India
    In India, anti-dumping laws are governed by Section 9A and 9B of Customs and Tariffs Act, 1975 (Amended 1995) and The Anti-dumping rules such as (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules of 1995, Section 9A of customs and tariffs Act 1975.

    The law states that “If any article is exported from any country or territory to India at less than its normal value, then, upon the importation of such article into India, the central government may by notification in the official gazette, impose an anti-dumping duty not exceeding the margin of dumping in relation to such article.”

    Directorate General of Anti-Dumping and Allied Duties (DGAD) is the authority which recommends anti-dumping laws, and Govt. imposes them.

    As of November, 2016, DGAD have imposed 353 anti-dumping duties across various products.

    It is not just China against whom anti-dumping duties have been imposed (although the proportion is certainly highest). In January 2017, India imposed anti-dumping duty on colour coated steel products imported from the European Union and China for 6 months.

    Here is a summary of major products, on which anti-dumping duties have been imposed in the past.

    Do you think prices of smartphones sold by Chinese companies can increase after this anti-dumping duty imposition? Do let us know by commenting right here.

    http://trak.in/tags/business/2017/08/10/chinese-products-anti-dumping-duty-india/
     
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  9. lca-fan

    lca-fan Major SENIOR MEMBER

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  10. Scotlander

    Scotlander Lieutenant FULL MEMBER

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    I'm all for Ban on Chinese Products as it will give boost to "Make In India".
     
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  11. Pundrick

    Pundrick Lieutenant FULL MEMBER

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    They should learn that an export based economy can't play trade war with a consumption & service based economy even if they approach WTO or cry like a baby.

    The hegemony which they want to setup/practice in world will never happen as they first have to first setup soft power in world, which lacks in the han communists at the moment.
     
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  12. randomradio

    randomradio Mod Staff Member MODERATOR

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    It worked against small countries, so they thought what worked with the Philippines will work with India. But they got a rude wake up call.
     
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  13. TrueGR!T

    TrueGR!T FULL MEMBER

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    :haha::rofl:
     
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  14. Butter Chicken

    Butter Chicken Lieutenant FULL MEMBER

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    It is difficult to completely ban Chinese imports,they are too much intertwined with the global supply chain.But certain imports can be done from ASEAN
     
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