How Will India Restrict The Influx Of Chinese Goods?

"You see, my clothes, my shoes and my backpack are all Chinese products! They are very cheap and suitable for our taste. They are much more comfortable to use than those produced in India". In particular, I turned over the collar of Tang GA and wrote four characters: Shenzhen fashion. And his Nike shoes are obviously fake from China.

Although Chinese textiles are India The government refused to shut the door, such as the recent India government's ban on cotton exports. The reason behind that is that India's textile industry has increased its competitiveness with Chinese competitors in order to reduce costs. However, because of the connection between Burma and Burma, it is more closely related to China, so the clothes sold on the market are almost all Chinese goods imported from the Burma border. Tang said that in his hometown, there was basically no market for goods in India.

In the commercial streets of Mumbai and Delhi, prominent stores are international brands and traditional costumes in India. However, like the top nine walking streets in Guangzhou, many places can be seen for a long time to see a lot of small shops, which display cheap clothes that Chinese people are familiar with. India friends who are familiar with quotations tell sina finance that almost all of them come from Thailand, and businessmen familiar with Thailand know that Thailand is a transit station for Yiwu and Guangzhou commodities in China.

In addition to clothing, other kinds of Chinese goods transferred through third parties are also seen everywhere in the India market. Chinese goods are irresistible.

　　 China India trade transfer station

Because of the border dispute, Sino Indian relations can not be particularly smooth. Gimic, who is familiar with the India government's decision-making strategy, told Sina Finance: "if the government now liberate Chinese goods into India, then all India will be Chinese products. Therefore, the India government is just using the border issue of the two countries as an excuse to boycott Chinese goods, which is the essence of the relationship between the two countries.

Gimic is right, according to media reports. Among WTO members, India is the most heavily sanctioned country in China. The delegation of the India government will arrive in Beijing shortly to discuss how to solve the 149 anti-dumping cases initiated by India. However, the so-called "on the policy, there are countermeasures", profit driven market driving force, driven many Chinese goods through third countries to India.

In January this year, Thailand's prime minister yingluck was invited to participate in the parade of India independence day. She said that Thailand and India are strengthening trade links, and plan to 2014. bilateral trade The amount is doubled to 14 billion dollars. Industry insiders joked that this is not an indirect increase in imports of Chinese goods. India and Thailand also said they would work together to develop the port of Burma as a trade transfer station. Recently, Aung San Suu Kyi, a political star in Burma who has been reforming the wind and waves, has made it more clear that Burma's opening will make it a pearl in the Sino Indian trade hub.

Of course, the most important transit point belongs to Hongkong. When Hongkong returned to China 14 years later, it was the first time that Hongkong chief executive visited India in 2010. India's "business front" commented that this is also out of line with Hongkong's position as a springboard between the two giants of China and India. At the end of March this year, Hongkong and India began consultations on the avoidance of double taxation agreement, which is intended to avoid double taxation arising from the transfer of Chinese goods to Hongkong. The agreement is expected to be signed within 2-3 months to promote the entry of Chinese goods into the India market. In 2011, the total volume of Hong Kong India trade was about 25 billion US dollars. Printing media said the agreement could contribute 10-15 percentage points to the growth of Hong Kong India trade.

　　 The "China model" is irresistible.

Despite the rapid development of transit trade, the direct trade between China and India is still small. Although Sino Indian bilateral trade is hindered, it is also on the rise. From 2002 to 20 thousand and 110, the total volume of trade between the two countries increased to less than 5 billion US dollars to 73 billion US dollars, which has already increased 14 times. At present, China has become India's largest trading partner, and the total volume of bilateral trade is expected to break through 100 billion US dollars by 2015.

The growth of bilateral trade benefits from the "China model". China has always advocated putting aside political issues and developing bilateral trade. This economic strategy is called the "China model" by the India media. To put it plainly, the key is to finish the business first. Despite the slow progress of the border issue between China and India, bilateral relations have become increasingly normal and perfect, and bilateral trade surge has played a key role. {page_break}

This "China mode" strategy is now "exported" to India Pakistan Relations. India and Pakistan, the two long-standing South Asian neighbors, are expected to learn from the "China model" to break through the stalemate between the two countries.

In April 8th, after the private visit to India by President Zardari of Pakistan, bilateral economic and trade movements accelerated significantly. After the visit of Pakistan's trade minister Makhdum Amin Fahim (Makhdoom Amin Fahim) to India on Friday, the Sino Indian border immediately opened a trade route. The visit is Maher Doom's third visit to India in seven months, indicating that both sides are determined to open up economic exchanges. Indian media analysis shows that if Pakistan is closely related to China, if it can improve relations with India, it will also be welcomed by the governments of China and India, and will also play a catalytic role in Promoting Sino Indian relations.

　　 Chinese equipment poured into India

Whether direct or indirect, the links between China and India will become increasingly close. However, with the neighboring Asian powers, the trade volume between China and India is far from the level of the US $350 billion, which is far from the level of the US $200 billion. The question is, where is the huge space?

Unlike India and Japan and South Korea, as an economic reform started slower than China's labor force, India is now in a critical period of development of the industry, so many Indians pursue the goal of catching up with China. Under such circumstances, China cheap The influx of manufactured goods has harmed India's local manufacturing industry, which is why India boycotted China's imports.

However, these commodities, which are mainly imported through third parties to India, account for only a minority of China India trade after all. The bulk of Sino Indian trade is infrastructure facilities. Print media reported that in 2010, India's total imports of goods from China accounted for 60% of total production.

Since 2007, India has been building a large scale civil engineering to develop transportation, ports, power plants and other infrastructure. However, because its domestic production capacity is far from meeting the demand for production materials, it has to rely on imports. The price of Chinese equipment, which is 30% cheaper than that in Europe and America, is favored by India. At present, half of India's new power equipment comes from China. The two daily necessities of toys and knitted fabrics account for only 1% of India's total imports from China.

India is facing a severe trade deficit. The latest India Reserve Bank report shows that the fourth quarter trade deficit of India accounted for 4% of GDP in the fourth quarter of last year, returning to the level before the economic reform in 1991, far exceeding the government's 3% safety line. However, India's trade deficit with China accounts for less than 20% of its total trade deficit. India's main trade deficit comes from imports of other countries' oil, natural gas and coal.

In fact, China has not only expanded the total trade deficit of India, but is helping to reduce its trade deficit. In 2010 alone, the $8 billion 300 million electrical equipment ordered by the Reliance Industries to Shanghai electric would save us $2 billion 500 million in deficit for India, because the same equipment in Europe was 30% more expensive than Chinese equipment.

China's cheap commodities will continue to flow into India through transit stations. But at the same time, if the India government can successfully achieve the huge infrastructure plan, the unique Chinese equipment will pour into the India market faster. In order to prevent the inflow of cheap Chinese commodities, India's infrastructure will be in a backward stage. The next big step will be China's factories and equipment in India. In order to develop manufacturing industry and develop a large number of cheap labor advantages, India needs cheap Chinese factory equipment and "made in China" experience.

Perhaps one day, the India government will put an advertisement saying: welcome Chinese people to build factories in India. This is the best way to resist cheap Chinese made goods.