Two Chinese state media reports said on Tuesday that after New Delhi imposed anti-dumping duties on 93 Chinese products amidst a military standoff in Doklam area, a trade war seems to be looming between India and China.
New Delhi was warned New Delhi to be “prepared for the possible consequences for its ill-considered action” and Chinese firms were urged to “reconsider the risks” of investing in India in an article in The Global Times, part of the ruling Communist Partys publication group.
The article said that it “doesnt make much economic sense” for the country and added that China “could easily retaliate” with restrictions on Indian products.
Resulting in a trade deficit of USD 47 billion, while India’s imports from China rose by 2 per cent to USD 59 billion, Indian exports fell by 12.3 per cent year-on-year to USD 11.75 billion, the article cited figures from the Indian embassy in China.
Last year, when the bilateral trade stood at USD 70 billion, the trade deficit with China had mounted to over USD 52 billion, according to the Indian Commerce Ministry.
“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 Chinas economic interests will be hurt, but there will also be consequences for India,” it said.
India and China have been locked in a tense military standoff in Doklam in the Sikkim sector and the news report on trade comes amidst such an environment.
Fearing it would allow Beijing to cut off India’s access to its northeastern states, India has protested the construction of a road by the Chinese military in the area claimed by its ally Bhutan.
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.”
Boycotting Chinese goods would harm India, another article in China Daily said.
It said the ongoing standoff in Doklam seems to have spilled over into bilateral exchanges while referring to the calls of boycott of Chinese products.
“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.
It said that the Indian economy would be hurt and Indian jobs would be lost by any attempt to keep Chinese cellphone companies at bay or shut down Chinese-invested factories.
(Adapted from India Today)