Can India boycott Chinese manufacturing?

At the very least, China must face up to this latecomer. It is also a giant economy that is currently the world’s top five and will be the world’s top three in the future.

China should have a clear understanding of India.

When Chinese people talk about India, they always think of trains full of Indian passengers and Indians drinking water in the Ganges River where bodies float: one is about poor infrastructure and the other is about hygiene and basic living standards.

Chinese will ask, why are Indians confident to provoke conflict on the Sino-Indian border? Why do many Indian netizens leave messages on the Internet saying “India is no longer India in 1962”? For Indians, India is now much stronger than ever.

The answer to this question is actually quite obvious. The Chinese rarely realize that India, which confronts us on the southwest border of China, is actually the fifth largest economic country in the world.

If we visit India many times, we will find that India has made great progress in manufacturing, Internet and infrastructure. Almost many major industrial products can be manufactured in India, but they are relatively low-end.

Can India boycott Chinese manufacturing?

But this alone has already created a certain degree of competitive pressure on China’s industrial exports to India.

Visitors can find that the tuktuks on the roadside in India also has a payment logo such as PayTM on the car window, which supports mobile payment. This is much like the ubiquitous mobile payment in China.

Of course, foreign tourists have discovered that in hotels, there will still be power outages when it rains, but locals also say that the power situation is much better than it was ten years ago.

If we look at the data, according to BP’s World Energy Statistical Yearbook, India’s power generation in 2018 increased by more than 60% over 2010. In 2019, India’s power generation in the world is second only to China and the United States, ranking third in the world .

In the past two decades, if we exclude China, from the perspective of long-term economic growth, India is one of the most stable and successful countries in the global economic development.

According to the latest data released by the International Monetary Fund (IMF), India’s economic aggregate in 2019 has surpassed the United Kingdom and France, ranking fifth in the world, behind the United States, China, Japan, and Germany.

Let’s take two comparative core industries in the manufacturing industry, electronics and automobile industries as examples:

In the electronics industry, India uses tariff weapons to force major global mobile phone manufacturers and mobile phone component manufacturers to set up factories in India.

From the 2014 India manufacturing plan proposed, in 2019, India’s mobile phone and component manufacturing plants will soar from two to 268.

Xiaomi established the first mobile phone factory in India in 2015, the second mobile phone factory in 2017, and three more in 2018.

So far, Xiaomi has seven mobile phone manufacturing plants in India.

The head of Xiaomi India, Manu Kumar Jain, tweeted on June 11, 2020. He said that 99% of Xiaomi phones and 85% of Xiaomi TVs are made in India.

Compared with Xiaomi, Samsung’s investment in India is larger.

On July 9, 2018, Samsung Electronics built a new factory in India’s Noida Industrial Zone. It was known as the world’s largest mobile phone manufacturing factory at the time, with an annual production capacity of 120 million units.

South Korea and India attach great importance to this project because both Modi and Moon Jae-in attended the completion ceremony on the day of completion.

OPPO and VIVO also set up factories in the Noida Industrial Zone in India, not too far from Samsung’s mobile phone manufacturing plant. Others such as Lenovo’s Motorola and Apple’s mobile phones are also produced in India.

When we pay attention to the relocation of Chinese industries, we generally pay more attention to Vietnam; but in fact, the scale of China’s global industrial chain relocation to India will only be greater than that of Vietnam.

Can India boycott Chinese manufacturing?

In 2019, India is already the world’s second largest mobile phone producer after China. In addition to the electronics manufacturing industry, India’s automobile manufacturing industry is also developing rapidly.

The world’s top four car-producing countries are China, the United States, Japan and Germany, so who is the fifth largest in the world?

According to data released by OICA (Organisation Internationale des Constructeurs d’Automobiles), India’s car production in 2019 was 4.516 million, which is only one step away from the world’s fourth-ranked Germany’s 4.661 million production.

In the field of commercial vehicles, such as buses and trucks, among the top five sales in the Indian market in December 2019, four of them were local brands in India, which together accounted for about 90% of the Indian market.

Can India boycott Chinese manufacturing?

At the same time, local auto manufacturing companies in India are also acquiring world-renowned auto brands to continuously improve their technical capabilities.

For example, there is a company called ForceMotors in India. In addition to trucks, nearly 50% of its revenue in 2019 comes from manufacturing engines for India’s BMW and India’s Mercedes-Benz.

Since Mercedes-Benz established a car factory in India in 1997, Force Motors has manufactured 115,000 engines for the company;

At the same time, ForceMotors has also been supplying BMW India since 2015, and has produced more than 45,000 units (engines).

India’s ambitions for industrial development go far beyond cell phone manufacturing and automobile manufacturing.

For example, at the beginning of 2018, the Ministry of Finance of India announced a “Central Budget for 2018”, which included substantial adjustments to import tariffs.

From this we can see India’s plans for the development of the manufacturing industry. For example, in terms of mobile phone parts, tariffs on lithium batteries, chargers and adapters, headsets and microphones have been increased to varying degrees;

In TV manufacturing, the import tariffs on LCD TVs, OLED TVs, and LED TVs have been raised from 7.5% to 10% to 15%;

Furthermore, for some labor-intensive production products, such as sunglasses, kites, clocks, mattresses and other furniture, as well as shoes, boots, leggings, candles, and jewelry, all import duties have been increased.

The purpose is to increase the proportion of labor-intensive manufacturing in India.

In addition to the above, India is also focusing on motorcycle manufacturing, and import tariffs on some plastics, plastics, and rubber products have also been raised.

It mainly involves the adjustment of tariffs on bus and truck tires, all to encourage foreign manufacturing industries to move to India and make them locally.

So, which country will bear the most impact from these measures? Of course, it is China as the world’s factory.

In addition to manufacturing, India’s technical capabilities are actually stronger than other developing countries.

Can India boycott Chinese manufacturing?

Take the military field as an example. Apart from China and Russia, India is the only developing country in the world that can try to design and build aircraft carriers, nuclear submarines, intercontinental missiles, fighters, nuclear weapons, tanks, domestic launch vehicles, satellites, and Mars probes.

Although its technological level is far from comparable to that of China, Russia and developed countries, it still exceeds that of other developing countries.

If we are to enumerate the wonderful aspects of India, we can undoubtedly list many. Many problems of Indians are actually caused by their poverty and backwardness.

Of course, with the development of time, although slowly, this impression will gradually fade with the development of education and economy.

Some Chinese scholars noticed when watching TV in India that many Indian TV channels are broadcasting mathematics and physics classes to students across the country for learning. It can be seen that ordinary Indians have a desire for learning and improvement.

India’s size has always been there. If it can continue to develop, even if the per capita can only reach one-third or one-half of China’s, the total amount will be a very staggering figure.

How to face India with its huge economy in the future is also a problem China will face.

At the very least, China must face up to this latecomer. It is also a giant economy that is currently the world’s top five and will be the world’s top three in the future.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2020/07/25/can-india-boycott-chinese-manufacturing/.

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