Should India Mull Sanctions on China?

Article Statesman 03.08.17No nation can achieve military hegemony without success on the economic front. Same is the case with China, the world’s largest merchandise exporter, a nation that within a few decades, and on the back of flooding world markets with low-priced goods, has shifted the balance of power so authoritatively that any Chinese belligerence today can only invite wide condemnation and outcry but not direct warning or a full-blown assault.

In part, India has also fueled this domination of China by allowing the neighbor to export goods in such a manner that our local industry suffered unprecedented, irreparable damages. A lot has been talked about why our trade deficit with China is a cause of worry, a ‘matter of concern’ as termed by the Commerce Minister. While bilateral trade stood at USD 71 billion in FY 2016-17, the deficit (owing to fewer exports from India) was at staggering USD 51 billion.

The question is how deficit figures became a persistent trend and discussions in Parliament or assurances from government, in the form of encouraging exports and halting the dumping of Chinese goods did not fetch desired results. It is certain that by the end of the present FY the trade deficit will remain where it is; woes of local industry will remain unresolved and India, yet again, will only supplement the so-called Chinese hegemony.

The initiatives by the Indian government aimed at narrowing the gap between exports and imports – the Merchandise Exports from India Scheme and its services sector counterpart, SEIS, the Niryat Bandhu Scheme exclusively for new export import entrepreneurs, single window clearance for facilitation of trade – have all fallen short of expectations and needs of local producers who have been elbowed out by low-cost imports from China.

What then needs to be done? In his Mann Ki Baat address to the nation, PM Narendra Modi has stressed upon the need to purchase goods produced locally. Had the issue not been so grave, it would not have been explicitly cited in a public address by the Prime Minister. The economy, especially industries like consumer electronics, toys, tyres, leather, solar energy equipment, machine tools, textiles, mobile phones and even cottage industry goods, has been severely damaged, all thanks to the free flow of Chinese goods into India.

Let us move beyond patriotic fervor and examine the possibilities of India preventing any China-made articles of trade from entering the country. Practically this seems unmanageable, for India is not only a signatory to various multilateral and inter-governmental trade pacts but also because India cannot afford to symbolize ultra-protectionism in this era of free trade. When Chinese goods are available to bona fide buyer at cheap rates, any shallow appeal by any authority or politician asking people to refrain from buying Made in China product does not hold promise.

But there’s another angle to this Sino-India story – the recurring border incursions by Chinese troops along the Line of Actual Control and McMahon Line. These border standoffs, which usually occur at key junctures such as a state visit of the Indian PM to the United States or an official visit of Chinese President to India, offer to India a chance to use hitherto unused ammunition – imposing sanctions on a belligerent, unaccommodating party.

A brief look at the past shows that this option has been exercised by China. It used this soft-power deterrent on Mongolia in retaliation for the latter’s invitation to the Dalai Lama in 2016. While China unilaterally went ahead with punishing the already ailing Mongolian economy, there have been numerous other instances such as the recent US sanctions on Russia. The US-Russia on-off rivalry is well-known but the India-China tiff has not achieved the same status because of India’s ever-easy stance on its ever-hostile neighbor.

But it is time the current dispensation, well-known for its reformist stance, its will as well as capability in taking bold decisions like demonetisation, mulls the idea of imposing economic sanctions on China, the country that is yielding high premiums on exports to India and is yet not supportive of its neighbor on key issues like counter-terrorism, her bid to join the Nuclear Supplier Group and become a permanent member of the United Nations Security Council.

By not responding authoritatively to Chinese belligerence, apart from the recent challenge we have thrown in the Doklam Plateau, India has only indirectly supported the downfall of its local manufacturing sector that could not sustain the tsunami of deliberately low-priced Chinese goods flowing unchecked.

It can easily be noted that under the garb of free bilateral trade China has undermined India’s economic, social, even political, growth. The impairment is not caused to industry alone, the unemployed youth and rising non-performing assets (NPAs) of banks also are a direct outcome of ever-rising consumption of Chinese goods by Indians. From LEDs to plastic toys, solar panels to smartphones, China planned and successfully implemented its agenda of usurping the Indian market.

A superpower has recently raised the slogan of ‘buy and hire’ local in the backdrop of the dent that Chinese goods have made on its economy. On the other hand, India has responded with a much softer pitch of ‘Make in India’, which after almost 3 years of its unveiling hasn’t brought any real benefits to local producers, employment seekers or other key participants of  the economy including banks.

China has steered clear of repercussions even when they defied our territorial integrity, not just once in a full-blown war in 1962 but also by intermittently entering the Indian side of the border unlawfully with the intent to change the already settled boundaries. China has done the same in the South China Sea by way of building military installations; but matters are vastly different there because no country in that region can stand upto the might of China.

This, however, does not hold true in the India-China case owing to our possession of nuclear arms, our widely acknowledged stature as a strategic power in the region, our celebrated democratic credentials, our GDP growth rate that has outpaced all others, and above all, our diplomatic weight under Prime Minister Modi.

Enough reasons call for India’s sanctions on China – its support for ‘natural ally’ Pakistan, a safe haven for terrorists, its building the China-Pakistan Economic Corridor that passes through areas India claims exclusive rights over (in itself a single compelling reason to cut off any economic and diplomatic ties with China), its opposing India’s bid to become a member of key inter-governmental agencies, and its employing state-backed media outlets to defame and intimidate Indian polity and armed forces.

It is high time now that the country resorts to exceptional yet necessary actions with a multi-pronged strategy that not only makes the world understand the will and ability of India in safeguarding its territorial integrity but also reverses the trend of downfall of local manufacturing industry. Given that countries across Asia, barring Pakistan and North Korea, are reeling under Chinese belligerence and hostile approach, placing economic sanctions will be much welcomed than denounced, it may alter the balance of power.

(The article published in daily newspaper “The Statesman” on 3rd August 2017)

Should India Mull Sanctions on China?

77 thoughts on “Should India Mull Sanctions on China?

  1. Bharat Singh

    Do not ban Chinese but make our production like them. We have everything from labour to capital then why cant we directly compete with them? Time to re-think working of domestic economy.

    Reply
  2. Rohit Regonayak

    China has increasingly undermined India’s interests and PM Modi should take note of this in a tough manner. Only a determined leader like him can think of trade embargoes and we surely need them.

    Reply
  3. Ankur Govil

    Sanctions on China will mean disputes in WTO and subsequent backtracks by India. Instead, government should strengthen local producers by giving rebates on taxes to small producers at least.

    Reply
  4. Rakshit goyal

    Think about our soldiers. They fight for us on border with these Chinese and Pakistanis but we civilians buy goods produced in these enemy countries.

    Reply
  5. Nitish Marathi

    One thing is sure. China cannot attack India as in that case there is a possibility of an all-out war. All countries need prosperity today so India should not bow to Chinese pressure.

    Reply
  6. Harish Kumar

    Some traders have made huge fortunes by selling China made products especially in big cities and in consumer electronics and mobiles in particular. They should be rejected by customers.

    Reply
  7. Gunjan Bhattacharjee

    What protectionism? Is it unethical to prevent local manufacturers from assault from across the border? Break all economic ties with China and they will learn the lesson.

    Reply
  8. Adarsh Kashyap

    The 1991 crisis was because we had a bad current account deficit. Today it is same when India’s trade with China is taken view of. Better manage the problem now or we will face tough time in future.

    Reply
  9. Pranay singh

    People have become habitual of buying Chinese goods as they are cheap. If the buyers can shift to Indian manufacturers then government action is not even required.

    Reply
  10. Mayur Monani

    China and India is a different story than US and Russia. Why then compare US sanctions on Russia with India considering same on China? India China are neighbours, US and Russia are not.

    Reply
  11. Swapnil Save

    Hi there to every one, it is in fact a fastidious for me to go to see this website, it includes important Information.

    Reply
  12. Mitansh Sanawar

    I am sure this piece of writing has touched all the internet viewers, its really really pleasant article on building up new weblog.

    Reply
  13. Rehaan díaz

    Really.. thanks for starting this up. This web site is one thing that is required on the web, someone with a bit of originality.

    Reply
  14. Amien KAUR

    it is an amazing piece of writing designed for all the online visitors. they will get benefit from it I am sure.

    Reply
  15. Prateek Tripathi

    I wish to say that this article is amazing, nice written and come with approximately all important infos. I would like to see more posts like this .

    Reply
  16. Anit Bhargav

    Thanks for your marvelous posting! I definitely enjoyed reading it, you might be a great author. I will be sure to bookmark your blog and will often come back very soon. I want to encourage you continue your great writing, have a nice evening!

    Reply
  17. Romesh SHARMA

    Woah. ? am reallly enjoying t?e template ?f thi? website. ?t is simple, y?t effective. ? lot of times it is tough to ?et that perfect balance bet?e?n usability ?nd appearance. ? must s?y you have ?one a amazing job ?ith th?s. In addition, t?e blog loads extremely fast f?r me on Chrome. Outstanding Blog.

    Reply
  18. Rakesh Varanasi

    Great article. Keep writing such kind of information on your site. Im really impressed by your blog.

    Reply
  19. Jenni

    Thanks for the marvelous posting. I genuinely enjoyed reading it, you are a great author. I will always bookmark your blog and will come back very soon. I want to encourage that you continue your great work,have a nice day.

    Reply
  20. Ujjawal

    I am not certain the place you are getting your information, however good topic. I must spend some time finding out much more or working out more. Thanks for great info I was searching for this info for my mission.

    Reply
  21. Shishir verma

    I just had to drop you a line to let you know that John and I think that the website is BRILLIANT……………………… Well done.

    Reply
  22. Kuljit Ray

    I visit daily a few web sites and sites to read articles or reviews, however this blog provides feature based articles.

    Reply
  23. Nimish Nadkarni

    So good to find somebody with some unique thoughts on this subject matter. Really.. thanks for starting this up.

    Reply
  24. Sadiq mohhmad

    This excellent website really has all the info I wanted concerning this subject and did not know who to ask.

    Reply
  25. Anand Nataraj

    Hi there everyone, it is my first go to see at this site, and piece of writing is genuinely fruitful in favor of me, keep up posting these types of content.

    Reply
  26. Ritam baroi

    Having read this I thought it was extremely enlightening. I appreciate you finding the time and energy to put this short article together. I once again find myself spending a significant amount of time both reading and leaving comments. But so what, it was still worthwhile!|

    Reply
  27. Bharat singh

    Great blog you have got here.. it is difficult to find high quality writing like yours these days. I truly appreciate people like you. Take care..

    Reply
  28. Sasikumar Nair

    The site looks absolutely fantastic. Well done to all involved. Very professional & the navigation is great too. Cheers.

    Reply
  29. Abhishek jha

    Hi, I do believe this is an excellent web site. I stumbledupon it. Money and freedom is the best way to change, may you be rich and continue to help others.

    Reply
  30. Rohit bansal

    it is hard to come by well-informed people on this subject, but you seem like you know what You are talking about. Thanks

    Reply
  31. Aditi mehta

    The structure of the composition is good,buttry to make sure the word order in your sentences is correct.

    Reply
  32. Shubhojit Mallick

    Hello. I simply want to give you a huge thumbs up for the great info you have right here on this post. I will be coming back to your site for more soon.

    Reply
  33. Surendra Pal

    I recently had a good fortune of reading your article it is really well written with updated information. I will be returning here often now.

    Reply
  34. Pranay Mehta

    Hello, its my first time to commenting any post. But I could not stop myself from commenting on reading through such a sensible piece of writing.

    Reply
  35. Ajay Sinha

    Way cool. Some very valid points. I appreciate you penning this write-up and the rest of the site is also very good.

    Reply
  36. Dheeraj Khurana

    Thank you for some other magnificent post. Where else could anybody get that kind of information in such a perfect manner of writing. I have a presentation subsequent week, and I am on the look for such information.

    Reply
  37. Zafar Khan

    It is always exciting to read through articles from other authors and use a little something from other sites.

    Reply
  38. Pranau sethi

    The website is bright, clean, quick, easily navigable and all the links seem to work well. Moreover, the contents here in blog shape is really wonderful.

    Reply
  39. Mythreya seetharama

    I have learn several just right stuff here. Certainly price bookmarking for revisiting. I wonder how much effort you set to create such a fantastic informative web site.

    Reply
  40. Tripal Mahi

    If some one wishes to be updated with most recent technologies therefore he must be pay a quick visit this site and be up to date all the time.

    Reply
  41. Marise barbosa

    Simply wish to say your article is as amazing. The clearness in your post is simply excellent and i could assume you are an expert on this subject. Well with your permission let me to grab your RSS feed to keep up to date with forthcoming post. Thanks a million and please keep up the rewarding work.

    Reply

Leave a Reply to Shubhojit Mallick Cancel reply

Your email address will not be published. Required fields are marked *