Amid the Doklam standoff, a trade war appears to be looming between India and China after New Delhi last week imposed anti-dumping duties on 93 Chinese products, according to Chinese newspaper The Global Times. Urging the Chinese companies to think twice about the risks involved before making investments in India, the news report warned India to be prepared to face the consequences for its ‘ill-considered action’.
The report also said that China could easily retaliate by putting restrictions on imports from India, but it doesn’t make much economic sense for the country. It 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.”
Quoting statistics from China’s Ministry of Commerce, the article said that in the first half of 2017, India has initiated 12 probes into Chinese products.
The Global Times also cited figures from the Indian embassy in China to show that Indian exports fell by 12.3 per cent year-on-year to $11.75 billion, while India’s imports from China rose by 2 per cent to $59 billion, resulting in a trade deficit of $ 47 billion.
However, according to the Indian Commerce Ministry, the trade deficit with China mounted to over $52 billion in 2016 when the bilateral trade stood at $70 billion.
At least 350 Indian army personnel positioned at the India-China-Bhutan tri-junction in Doklam since June 16, when they stopped Chinese troops from constructing a road near the disputed region. Both Bhutan and China have competing claims over the region.
Another China Daily reported that boycotting Chinese goods would be harmful for India. The article said, “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.”
Warning India, the report also said that any attempt by India to shut down Chinese cellphones companies or other factories will badly affect economy of India and will cost Indian jobs as well.
(With inputs from PTI)