The standoff between India and China in the Doklam region still continues This disputed region lies between China and Bhutan where neither the Chinese nor the Indian army is ready to retreat As I mentioned psychological tactic and ploy of China to suppress her neighbouring countries and to put pressure on them I also mentioned to drastically reduce the use of Chinese products as much as possible and to boycott them i will tell you in detail about how real it is possible to boycott the Chinese products Let us see
First, we have to understand the export-import situation between India and China In 2014-15, India imported $ 60.4 billion worth of Chinese products and India exported only $ 11.9 billion worth of Indian products to China You can see how huge is this imbalance China exports 6 times more to India than what India exports to China It is called as ‘Trade deficit’ which is certainly not good Every country aims to reduce the trade deficit as much as possible There is a trade deficit of about $ 50 billion between India and China It used to be low in 2010 but has steadily increased over the years Since China is exporting more than what it is importing from India So it is in a
“Trade surplus” situation with India It is just reverse of ‘Trade deficit’ situation It is advantageous to be in a ‘ Trade surplus’ situation It is because the country to which products are exported becomes more dependent on you if you increase the price of products that country has to pay more But at the same time if both the countries go for 50% reduction of total trade between them then China has to suffer more in terms of loss as it is exporting $ 60 billion worth of products to India China will suffer a loss of about $ 30 billion If Indian exports reduce by 50% from $ 10 billion then India will suffer a loss of about $ 5 billion In this case China has to suffer greater loss India has to focus on how to reduce import of Chinese products and possibly replace them The solution to this problem coming mostly to people’s minds.
Why Not Ban Chinese Imports?
That why the Indian govt. does not impose a ban on Chinese imports but imposing a ban is not a solution, in fact, it is not possible According to WTO rules no country can impose a ban on trade with any specific country without any reason even if there is an ongoing military conflict with that country So such a step is not possible Even if we presume it is possible for Indian govt. to ban all Chinese imports Imagine what will happen to the imported products worth $ 60 billion in India India has to suffer a heavy loss because of it Where will those products come from?
Replace with Made in India?
So imposing a ban is not a solution, In fact, to replace the Chinese products is the solution People will say in order to replace start using Made in India products It is pleasant to hear and should be encouraged to do but just imagine $ 60 billion worth of products were coming from China it is very unlikely that such a number of Made in India products will fill the markets on short notice to replace the Chinese products It is not possible to replace them as large scale manufacturing doesn’t happen in India
Replace with Other Countries
The realistic solution to this is to replace the Chinese imports gradually with other countries The first country to figure here is Taiwan If we analyze the breakdown of products India imports from China I have done in this excel sheet all the data has been recorded from WTO website 41% of the products that India imports from China comprise of mechanical and electrical equipment It includes cell phones, washing machines and TV In order to replace them we have to look around for other countries The countries making such type of products are Japan South Korea, Germany and other European countries India can import products from these countries and use their products as replacement India has held better ties with these countries with good trade relations.
Evidently, India should focus on increasing trade with these countries consequently replacing trade with China One country that figures out here especially is Taiwan The relations between India and Taiwan hold great potential in the current scenario India has never extended her hand directly to Taiwan In fact, none of the Indian PMs have ever visited Taiwan It is because of the fact that India never wanted to harm her relations with China China believes and considers Taiwan geographically as a part of its territory China believes that Taiwan is not a separate country.
But the way China is escalating border conflict with India and exercising undue psychological pressure on countries India has a golden chance to extend a friendly hand towards Taiwan I would say that PM Modi should become the first PM to visit Taiwan and start trade talks between India and Taiwan This will put great psychological pressure on China not only in terms of trade but on the ongoing Doklam
How Can all of us Contribute
I would like to say that this initiative to replace Made in China products with Made in Taiwan, Made in Korea and Made in Japan products needs to be taken by companies and traders Neither the government nor the public as citizens and consumers can do much in this issue because in the present scenario almost 80-90% of the market is flooded with Made in China products we have no other option except than to buy those products what will we do? Hence it is very essential for companies and traders to understand that we as consumers will not mind paying a little more for a product made in Taiwan or Japan instead of Made in China But we as consumers and citizens should reject Made in China products as much as possible
Reject Made in China!
We should put pressure on those companies and traders and make them realize that if they continue to sell Made in China products we are not going to buy them I know that this is possible to a certain extent There is a limit to it After all then it depends on our necessity if we don’t buy a product we badly need then how we will run our homes I know and understand this issue but we must try as much as possible The main decision in this issue needs to be taken by the company bosses and traders. Sell a product at a slightly higher price which is not Made in China even then it is certain the people will readily buy them In fact, I will say that if you put a signboard in front of your shop denoting that “Made in China products are not sold here