This Diwali, there have been a lot of talks about boycotting Chinese goods; obviously, why buy their goods, when our artisans are so creative? Why let them earn profits? Instead we could buy them from Indian artists and give them a chance to earn money, isn’t it? But wait, China is not going to take it casually! It has WARNED India and said that if their goods would be boycotted, it will negatively impact India in terms of investments…
Yes, China said that if their goods are boycotted, they would stop investing in India. There are many Chinese firms that invest in India, but if their business is affected, why would they let India earn profits.
They stated that exports won’t be impacted much but the major effect would be seen on Indian traders and consumers. A statement was issued, in which it was clearly mentioned that when it comes to goods, China is the largest trading nation in the world. In the year 2015, the exports amounted to a whopping $2276.5 billion.
Since the exports to India account to just 2 percent of the total exports of China, there wouldn’t be a considerable impact on it. The only thing which India has to worry about is that Chinese enterprises would avoid investments in India and the bilateral cooperation between 2 countries would weaken.
Why this boycott?
Owing to tensions between India and Pakistan, social media is filled with boycott messages for China. Why? Because China is supporting Pakistan and Indians want to protest against it. Confederation of All India Traders i.e. CAIT stated that there would be a 30 percent decline of Chinese products in India.
Cheap Chinese products!
India is undoubtedly the biggest market for all sorts of Chinese products like electric fittings, lighting, fabrics, office stationery, kitchen equipment, watches, gift items and what not.
Now, if Chinese products are boycotted in India, the consumers would definitely be at loss because those products have always been low priced.
Secondly CAIT said;
“The boycott effect will not limit to Diwali related products, but extended to other Chinese products that are not related to the festival. In the long-run, boycott will not only hurt Chinese goods sale, but also cause negative effects to consumers in India”
It added;
“China-India trade cooperation has deepened over the years and the bilateral trade has grown 24 times in 15 years, from $2.9 billion in 2000 to $71.6 billion in 2015. China has become India’s largest trading partner, source of imports and fourth largest export market. Moreover, India is the China’s largest trading partner in South Asia and ninth largest export market in the world”
So if Indians boycott Chinese goods, they are going to pose a threat for us, isn’t it? What do you think about this? Do share your views in our comments section below.