These Companies Will Suffer Huge Lose, If India Boycott Chinese Goods
More than a month have passed since the standoff between India and China started on June 16 over the illegal construction of a road by China in Dokalam area near the Bhutan tri-junction. Social media is now buzzing up with the demand of boycotting Chinese products in Indian market. Several big Chinese companies like Coolpad, Gionee, Haier, Oneplus, Oppo, Vivo, Xiaomi, TCL, Sinosteel etc has its widespread roots across India. These Companies Will Suffer Huge Loss, If India Boycott Chinese Goods. While India is busy importing China products, China, on the other hand, is using that money to buy weapons against India. Is this a good deal??? Of course not!!!
Various organizations have called for boycott of Chinese products to teach China a lesson for creating troublesome situation on the border and assisting Pakistan. If we check the import-export graphs, India exports less to China and imports more. India can influence China economically by boycotting its goods. And this report is not erroneous at all as the latest financial year depicts that the last year imported Chinese goods worth over USD 60 billion.
Companies That Will Suffer Huge Loss If India Boycott Chinese Products
|Baoshan Iron & Steel Ltd.||Huawei|
|Sany Heavy Industry Ltd.||Konka|
|Chongqing Lifan Industry Ltd.||Lenovo|
|China Dongfang International||Letv|
|Sino Hydro Corporation||Meizu|
|Beijing Automotive Industry Corporation (BAIC)||Zopo Mobile|
|ZTE KangunTelecon Company (I) P. Ltd.||ZTE|
|ESSEL Ahmedabad Godhra Toll Roads Ltd.||ZUK Mobile|
|Shanghai Electric India Pvt. Ltd.||Alcatel|
|TBEA Energy India Pvt. Ltd.||G’five|
|Chenguang Bio-Tech India Pvt. Ltd.||Gionee|
|Ecolutions Green Energy India Pvt. Ltd.||Haier|
|YAPP India Automotives Systems Pvt. Ltd.||Huawei|
|XINDIA Steels Ltd.||Konka|
|Nippon Paint (India) Pvt. Ltd.||Lenovo|
|Cheetah Multitrade P. Ltd.||Letv|
|Jushi India FRP Accessories Pvt. Ltd. magazine||Meizu|
|WISCO (I) P. Ltd.||OnePlus|
This is not the first time that the social media call for banning Chinese goods. Last time the issue came to light when India was gazing for China’s assistance to reach United Nations designated terrorist Jaish-e-Mohammed chief Masood Azhar residing in Pakistan. China refused to believe Azhar as terrorist as it was not proved on technical point by India’s argument.
However, it is a matter of great concern that our imports from China are nearly ten times our exports to that country. More shocking is the truth that our exports of products have been continuously experiencing reduction in the 18 months to May 2016.
Condition Of India’s Small Businessmen
India is earning less from the exports but spending more on the imports of electronics, Washington apples and Swiss chocolates form China. The infrastructure in India is dilapidated; businessmen have to pay bribes to the inspectors from the industries, labour, electricity, GST, and weights and measures departments to hide their loopholes.
Well we can’t underestimate the fact that the cost of production is high in India and we are being priced out of the world markets. On the other hand, we are continuously importing large quantity of goods due to which we are running a huge trade deficit. Our economic system is completely ruined because of so called “Corruption” in the country.
The government has made the survival of millions of small businessmen difficult by push India towards digitalized world and imposing GST. Now, small businessmen in India have to spend more money and time in complying with the new rules and regulations. Our farmers and businessmen are not efficient enough to stand up to global competition due to lack of good infrastructure, latest technologies and complex regulations.
Is The Boycott A Totally Useless Idea?
India is earning great money from foreign direct investors who are buying big piece of land and setting up their factories. On the other side, China’s income from exports is more and expenditure for imports is dropping at a great speed. They use the earnings for buying up properties in the United States. Chinese companies have purchased large plots in Africa to raise their industries. The Chinese government has successfully purchased large amounts of bonds issued by the United States government.
India’s bazaar roads are chock full of stationery, attire emblazoned with cartoon characters, toy stores plastic bags, pencil boxes and lot more attractive colored Chinese stuff. Chinese products reach the Indian market in various forms & they are also inexpensive. Even if the Indian shopkeepers do advertise the Indian branded ones to the customers, they do not go for it.
Products like Rakhi, Diwali crackers, Kites, Kite strings, Holi colours, rice, eggs, vegetables etc all are imported from China and people buy these products as its cost attracts them. But if reports are to be believed, Chinese products are made up of toxic chemical and consuming these chemical may result in sever health hazards. May be due to increase rate of intake of harmful Chinese eatables the rate of life threatening diseases in India like cancer is increasing.
If the country Boycott Chinese Goods, the Indian small businesses will be able to raise their production and as the profit will increase, better means of production will establish and this in turn leads to low production cost. The people of India will then be able to enjoy reliable and cheap goods formed within their own territories.
More Chinese Companies Investing In India
The stat indicates that China is continuously growing its sources of Foreign Direct Investment (FDI) into India. According to India’s official ranking of FDI inflows, in 2016, China was the 17th largest, up from the 28th rank in 2014.
According to Santosh Pai, partner at Gurgaon-based Link Legal India Law Services, “Actual Chinese investment in India is at least three times higher than the official Indian figure,’’
60% of Chinese FDI is concentrated in the automobile industry. Several regional offices of Chinese companies are situated in Ahmedabad. However, these companies are gradually moving towards Andhra Pradesh, Maharashtra, Tamil Nadu and Haryana.
According to the report by FICCI, the Chinese have invested in the Indian sectors as described below:
- Automobile Industry (40%)
- Metallurgical Industry (17%)
- Power (7%)
- Construction (5%)
- Services (4%)
Our trade deficit with China is because of high cost of production. We must take measures to lower the cost of production for our farmers and businessmen. Boycotting Chinese good will really prove productive for our businessmen, but this will be counterproductive if fail to manage our bureaucracy first. At present, China has a GDP rate of $17.6 trillion, exhibiting growth of 7.4%. Making it one of the most economically strong countries but if India bans Chinese products, its economy will smash down terribly.
So, this is all about the latest news concerning the expected future move of India against China, for more interesting topics on the go, stay connected with us only at coolexample.in