Tag Archives: #china

INDIA’S MASSIVE TRADE DEFICIT WITH CHINA; LOWEST IN FIVE YEARS

India’s trade deficit with China sinks to $48.66 billion in 2019-2020 which is lowest in five years. Now what is the trade deficit? Trade deficit can be defined as an amount of imports of a particular country exceeding the amount of its exports. According to the data, exports to China in the last financial year stood at $16.6 billion, while imports accumulated at $65.26 billion. India and China are two very well-known countries with ancientCivilizations, their partnership in every major field like trades has made an ideal example since over 2000 years. But from the last few weeks the India- China relation has deteriorated. The main cause of the clash was a dispute over the sovereignty of the widely separated Aksai Chin and Arunachal Pradesh border regions. So, it can be assumed that this clash played a vital role along with lower imports and higher exports as the major cause of India’s significant reduction of trade deficit.

The major imports from China cover electronic gadgets (clocks, watches, smart phones, calculator, laptop etc.) plastic materials (toys, plastic containers, bottles), sports goods, musical instruments, furniture, chemicals, irons, mineral source, metals and fertilizers.

Foreign Direct Investment (FDI) from China in India fell to $163.78 billion in 2019-2020 from $229 billion in previous monetary, the data said. 14% India’s imports are recorded by China and the major portion comes from critical pharma ingredients and telecom.

 India was able to captivate FDI worth $2.38 billion from 2000 to March 2020 but in April the government has narrowed the standards for FDI coming from the neighboring countries especially which share a land border with India like China.  As per FDI, any company or individual can steep in any field with the government approval.

Top sectors like metallurgical (USD 199.28 million), services (USD 170.18 million), electrical equipment (USD 185.33 million) which showed maximum FDI from China in the period of April 2000- March 2020.

Around 371 products have been identified for technical regulations. Out of 371, technical regulations have been assigned for 150 products worth $47 billion of imports.

The reduced imports from China also helped the U.S. extend its lead as India’s largest training partner against trade off $88.8 billion with US India straight with China was just $82 billion. 2019-2020 year’s trade deficit of India is almost similar to 2014-15, when the Narendra Modi took first post, but it was 34% higher than 2013-14, stimulating the government to suggest that the further steps taken in recent months have yielded results.

In that definite time when entire world has been put off financially due Corona virus pandemic accompaniedby India-China war; in the standing of that point taking such steps like restricting the imports from China would be a great decision for India.

The Country and countrymen both are hopeful, at the same, of time what lies ahead in future.

“A large chunk of these originate from China. We will pursue import substitution,” a senior official said.

BIGGEST MANUFACTURER OF WORLD: CHINA

Whenever we go to the market and if we observe more than 50% of products have label and tags on which it is written: “MADE IN CHINA”. Due to which many buyer and seller might wonder ‘though china is a communist country’ still it is the world’s biggest manufacturer. Many of the product of china is similar to the US and other countries still most of the people buy Chinese product because of its lower price.

During the time famine which was faced by the Chinese in 1958-1961, they lost their economy and crisis took place at that time but as the time passes they rebuild themselves and today they are Biggest Manufacturer of the world

China is known to be “the world’s factory” because of the following reasons:

  • Low wages

During late 20 century, people were divided into 2 category urban and rural but as time changes they started internal migration many rural people came to the urban city for the work as we all know China is the most populated country in the world that’s why the supply of worker is more for working on low wages then the demand of worker this help china in production of goods as if the wages will be low then price of the product will be low.

Also, they don’t believe in the law of child labour but this law seems to be changing and also they have increased their minimum wages.

According to 2020 report, minimum hours cost in shanghai is 22 Yuan which is $3.16 her and if we consider of the month then it is 2480 Yuan which is around $355 and on the other hand in Shenzhen, the monthly wages is 2200 Yuan which is $315 and hourly it is considered as 20.3 Yuan ($2.91). Since the wages are low therefore the price of product decrease

And if we talk about the western country their main focus is on minimum wage value and child labour. This makes a difference in the price of the same kind of product.

  • LOWER COMPLIANCE

In certain countries mainly western are very strict and concern about their rules and guidelines regarding child labour, minimum wage rates, labour laws etc. but at the same time if we talk about china they don’t have any such strict rule regarding child labour or worker’s laws most of the industries don’t follow any such rules.

Child labour in industries of china has long shifted and also they are not provided with any compensation insurance not only this many companies follow the policy to pay wages once a year to the workers. This is the way to keep the workers form quitting before the year ends.

Nowadays workers are standing for their rights and government are now quite concerned about workers rights however, slowly and gradually these laws are taking place in industries regarding child labour, environmental protection and minimum wages.

  • BUSINESS ENVIRONMENT

China is involved in trading from many years during AD 1371-1433 china exchange goods; culture and religion with other countries like South Asia and the Middle East through the silk route

After that, as time passes on of the most famous person from Ming Dynasty called captain Zheng took 7 trips to establish trading contact with countries like- Africa, India, Arabia and South East Asia through the Sea route. So, it is quite clear from this that China has a large history of trading with other countries and for this, they need network supplier, customer, component manufacturer, distributor, government agencies. This is good for the business and china has all such link which helps them to grow their work worldwide.

  • TAX AND DUTIES

In 1985 china came up the policy to rebate the export tax and also they abolish the system of double tax on export goods which means zero% of VAT (value-added tax) which means they enjoyed the rebate policy and VAT exemption also this help to lower down the price of their goods this policy also attract the investor and companies produce low-cost goods.

  • CURRENCY

Most of the time China is a summons for artificially depreciating the value of Yuan which provide them to export similar kinds of goods produced by their competitor country U.S.

China always takes care of rising in Yuan they buy the dollar and sell Yuan.

In late 2005 according to one report, the value of Yuan was 30% against the dollar after that in 2017 the value raises to 8% against the dollar

Although in 2018 trend got to change and Yuan got depreciate against Dollar, in the beginning, the US adds the tariffs to china goods but then on 8th August 2019 central bank of china lower the Yuan to 7.0205 per Dollar this allow china to export their good with a lower price of the product but also this results in Trade war between China and US.

  • CONCLUSION

With the help of cheap labour and less compliance and business environment help china to become “largest manufacturer of the world” but also at the same time artificially depreciating the value of Yuan result in a trade war between both US and China because of the lower price we able to see most of the product in the market with the label ‘Made In China.’

Battle of Tibet for a sense of identity


Tibet is one of the biggest victims of Human Right Violation to date. It was once an independent state headed by Dalai Lama (Spiritual and political Head of Tibet) but was forcefully annexed into China by then ruling of the People’s Republic of China. Since 1959, people of Tibet have been struggling for their rights such as Freedom of Expression, Freedom of religion, freedom of speech and freedom of Identity.
“These 50 years have brought untold suffering and destruction to the land and people of Tibet. Today, the religion, culture, language and identity … are nearing extinction; in short, the Tibetan people are regarded like criminals deserving to be put to death … However, the fact that the Tibet issue is alive and the international community is taking a growing interest in it is indeed an achievement. I have no doubt that the justice of Tibet’s cause will prevail, if we continue to tread the path of truth and nonviolence.” – The 14th Dalai Lama, 2009.
Tibet is a region on Tibetan Plateau in Asia, covering 2.4 million square kilometres, about ¼ of Total Chinese territory. It is the highest region on earth with a mean elevation of 4900 meters. Tibet holds strategic importance due to its proximity with India, the type of terrain it holds and It also is a centre of Buddhist Religion.
Tibetan dispute dates back a century, Tibet declared independence after falling of Qing Dynasty and kept function as Independent protectorate till 1959.
Tibetans signed a seventeen point agreement, handing over their sovereignty to the People’s Republic of China. Now China uses this very document as their validation over Tibet.
HISTORY OF TIBETAN UPRISE:- Timeline
1959- In Lhasa full-scale uprising broke out, tens of thousands die in brutal suppression by Chinese. Tibet was invaded by some 30000 Chinese troops who tortured, molested and raped an estimated 1.2 Lakh Tibetans. Dalai Lama’s government was exiled.
Dalai Lama was offered refuge by India. About 1 lakh people followed Dalai Lama to India and took refuge here, they were made to lose their homeland, to preserve their cultural and religious identity.
1965- Chinese authorities recognized Tibet as T.A.R. (Tibetan Autonomous Region). China retaliated the Indian move of providing Dalai Lama refuge by waging war against India.
1987- Dalai Lama asks to establish Tibet as a zone of peace and reinitiate dialogue for betterment of Tibet and it’s people.
1988- China imposed martial law in Tibet after a serious of riots as the initiations of Dalai Lama failed considerably.
1989- Dalai Lama was awarded the Nobel Peace Prize as the International community recognized his contribution and selfless efforts to establish peace.
• Present Scenario
This region is administered by China as T.A.R..Tibetans accuse China of carrying large scale Human Rights Violation and changing the outlook of the region by promoting large scale migration of Han people.
Chinese authority always responds to demonstrations by Tibetan people by further restricting already strict norms and snatching basic rights such as freedom of assembly, freedom of association and freedom of religion. Journalists and Reporters are not allowed to report matters of Tibetan people, their grievances often fall on deaf ears.
It is a famous saying that to destroy any society one needs to destroy their faith, this very plan was appointed by China and about 6000 monasteries were destroyed.
In recent turns of events, United States planned to recognize Tibet as Independent as a way out to pressurize China, this move is purely political but still, it serves its purpose of concentrating Global Attention on Plight of Tibetan People for Independence.
By Shubham Yadav

India -china on going relation.

India and China are going in locked in an eye ball to eye ball face off in Laddakh with each other.Since 5 May,2020 chinese and indian troops have engaged in face-offs and skirmishes at location along the Sino Indian Border, including near the disputed Hanging lake in Ladakh.In May, chinese objected the construction of Indian road in Galwan river valley.On 15 of June 20 Indian personnel including a colonel,were killed in a clash with Chinese troops in Galwan valley.The clash resulted in biggest confrontation between the two militaries.Indian goverment has taken a decision in order to respond to the border dispute with China.Prime minister Naredra Modi said, has taken a decision of boycotting Chinese application in India ie,zoom ,tik-tok,shareit along with that bycooting chinese goods and this teach “China a lesson”. However various types of action are taken on the economic front including cancellation of certain contacts with Chinese firm.

The Galwan Valley Faceoff


The Galwan valley faceoff between India and China was a major incident, it shook not only the two nations but the whole dia and China are the top two most populous countries, while China is already an established superpower, India is emerging as a frontrunner to be one soon.
The 20 Martyrs who laid the supreme sacrifice, Initiated a nationwide wave of Nationalism. Indians started boycotting Chinese products and services and Both the nations will suffer a great deal by the aftermath of the Faceoff.
For understanding is further we first need to know what exactly is the issue between The two nations.
• The policy:-
Well, all are very well aware of the Chinese policy to expand and dominate, this policy has victimized many, examples being Chinese Taipei, Hong Kong, Pakistan, Sri Lanka, and lastly In the dia.
The Cause:-
This incident took place amid de-escalation process, India is constructing a Road to connect Northern command of Indian Army to Daulat-Beg-Oldie which is part of Aksai Chin still under Indian Control, This road has major strategic importance as it can serve as a supply road to stop any Chinese Aggression if required, it will also allow India a better and efficient Coverage of the complete Area. China is of the view that this is an inappropriate move and hence Peoples Liberation Army which is the Defense force of China increased its deployment in this region and constructed a new temporary base that is equipped with Artillery Guns and Mechanized Infantry Battalion support. Chinese transgressed to a place near patrol point 14 which is high ground and offers a bird’s eye view of the Indian developments India replied to this Deployment by making mirror deployment, which in general term means putting up an equal number of men and equipment behind our defense lines. The situation kept escalating to that point of pushing and pulling which is sort of a regular exercise on the Line of Actual Control. Watching the fight brew beyond control it was decided to come to a table and discuss matters. A Commander Level Bilateral talk was organized and de-escalation started.
• The incident:-
the talks Chinese Commander promised de-escalation. There is no certified source of information regarding the incident itself, there are many theories floating but the most convincing is that on the due date when the promised mobilization of Chinese troops didn’t occur, Colonel Santosh Babu ( Cobirdspoint accompanied by a patrolling party went to check the matter. The Chinese Troops were prepared and ambushed Indian Soldiers.
The Indian troops called for backup and reinforcements were sent. A Street type Brawl occurred and a high no of casualties was reported. India lost twenty of its guardians but china is yet to confirm the numbers.
No bullets were fired in the clash because of the agreement between the two nations signed in 1996 as Confidence Building Measures; instead, stones and clubs were used. According to reports, the Army men died due to injuries sustained from stone-pelting by the Chinese.
The Resolution
Although high-level efforts (Joint secretary level) are on to defuse the situation, a quick resolution of this standoff at Galway doesn’t seem likely now. Chances are that it could be prolonged impasse, with India unlikely to budge even as China appears unwilling to pull back. China’s state-run newspaper Global Times has already made a false claim that “clashes were triggered by Indian troops as they crossed over to the Chinese side and carried out attacks on Chinese soldiers.”
• The Impacts
It will impact both the nation as economies of both are interdependent to such extent that it is very unlikely that India or China Will thrive without mutual Support. India is now working on improving trade deficit and an increase in import tariffs of Chinese Goods is on cards.
We can just hope the situation reverts back to normal very soon because India already is suffering a great deal from the COVID19 pandemic. But if the question will be raised against Indian integrity, India is well equipped and completely capable of answering.

PM Modi commits sacrifies of our soldier will not go in Vain

Satellite images of Galwan Valley, Ladakh

Addressing the nation on June 17, 2020, after the Ladakh’s Galwan Valley face-off between India and China at border PM Modi says that the deaths of our brave Soldiers will not waste.

PM Modi also warns China and said that India would not “compromise with its integrity and sovereignty” and will firmly defend its self-respect and every inch of land.

PM Modi pays tribute to the Martyrs 

On Monday night clash between India and China in Ladakh’s Galwan valley, which was the biggest confrontation over five decades, three personnel- an officer and 2 soldiers- died.

“During the de-escalation process underway in the Galwan Valley, a violent face-off took place on Monday night with casualties. The loss of lives on the Indian side includes an officer and two soldiers,” the Indian Army said in a brief statement.

Late on Tuesday evening, another statement from the army said: “17 Indian troops who were critically injured in the line of duty at the stand-off location and exposed to sub-zero temperatures in the high altitude terrain have succumbed to their injuries, taking the total of those killed in action to 20.”

Paying the tribute to Indian soldiers Prime Minister Narendra Modi said on Wednesday that India is proud of the valour of our armed forces. They have always shown remarkable courage and steadfastly protected India’s sovereignty.

Asserting that the sacrifice of the army men will not go in vain, the Prime Minister said, “India is culturally a peace-loving country…We have always worked closely with our neighbors in a cooperative and friendly manner…We never provoke anyone…Whenever the time has come, we have demonstrated our power, proving our capabilities in protecting the integrity and sovereignty of the country.”

China tries to blame on India

In a telephonic conversation between the External Affair Minister Jaishankar and his Chinese counterpart Wang Wi, Jaishankar said that the Chinese side should reassess its actions and take corrective steps, the Ministry of External Affairs said.

“While this became a source of dispute, the Chinese side took premeditated and planned action that was directly responsible for the resulting violence and casualties,” the MEA said, giving details of the conversation.

After the conversation between the two Chinese foreign ministries issued a statement and said that ” India should conduct a thorough investigation, hold the violators accountable, strictly discipline the frontline troops and immediately stop all provocative acts to ensure such incidents will not occur again”.

The Chinese statement also said the two sides agreed to “cool down the situation on the ground as soon as possible” and maintain peace and tranquillity in the border area in accordance with the agreement reached so far between the two countries.

All the three forces on Alert

Meanwhile, Defence Minister Rajnath Singh held a high-level meeting with Chief of Defence Staff and three service chiefs following which all the frontline bases of the Indian army and Indian airforce were put on high alert in view of the clash, military sources said.

The Indian Navy has also been asked to raise its alert-level in the Indian Ocean Region where the Chinese Navy has been making regular forays.

The sources said the army has rushed in additional troops to all sensitive areas along the Line of Actual Control (LAC) in Arunachal Pradesh, Uttarakhand, Himachal Pradesh, and Ladakh, and directed all the frontline bases to deal with any aggressive behavior by Chinese Army with a “firm” hand.

LAC- India v/s China

Amid the going tensions of the world crisis, Indian and Chinese armies are again and again clashing at various points along the Line of Actual Control (LAC). Although, there were many times in the past when the two armies clashed with each other since there has not been a proper demarcation of the border lines between the two large economies. Also, incidents as these are uncommon along the LAC as both sides have differing perceptions of the alignment of boundaries. But what has caused a sudden attack on the Line of Actual Control?

Reasons for the current standoff-

Recently the standoff at LAC occurred at four places- Pangong Tso, Galwan Nalah, Demchock in Ladakh and Naku La in Sikkim, though the specific reasons for these clashes remain unclear. However, co-ordinated nature of Chinese intrusions at different points along LAC have raised concerns about Beijing’s intentions. At times it’s been noted that China’s reaction to Indian efforts over the last few years to build border infrastructure has been ultrasensitive and it fears that activities such as-
  • Construction of a feeder road near Galwan river connecting with the DS-DBO road.
  • Building a road in Pangong lake area.
Although both the new roads lie on the Indian side of LAC, their purpose is to strengthen further the Indian position along the LAC which might have irritated China which feared it and might have threatened it’s occupation of Aksai Chin and Lhasa-Kashgar highway. Also, China remains much more concerned about the newly constructed Dharchula to Lipulekh and believes that this newly inaugurated road has affected China’s border security in Tibet. While India decided to split Ladakh from Jammu and Kashmir last year, a that unsettled Pakistan. Many experts believe India’s aggressive position on the issue of Ladakh and PoK is the real reason behind current standoff.

What is China trying to signal?

This time, the scope, scale and posture of China’s moves were unprecedented. Against the backdrop of dramatically slowing economy, criticism for the handling of the outbreak of the Coronavirus and worsening ties with many countries, Chinese leaders may have felt the need to show strength, especially over questions of national sovereignty. This can be seen, not only regarding the border with India, but also regarding Taiwan, Hong Kong and the South China Sea. Considering the United States as it’s main “rival”, and not India, it generally seeks to maintain stability in the border dispute with India.

Current status-

After a tough tug and war between the two countries along their security lines, both the sides are currently engaged in the dialogue process at an appropriate level to avoid every kind of tensions between the two.Senior military commanders of India and China were scheduled to meet on 6th June to find a solution, and as a result, both sides have slightly retreated from their current positions. While Chinese Army had reportedly retreated by 2kms, the Indian Army has stepped back by one kilometres.

History of LAC-

In 1993, after years of territorial standoffs and negotiations, China and India finally signed an agreement which attempted to mark out a long stretch of border between the two countries. This came to be known as the Line of Actual Control, but it’s precise location can be blurry, and there is still dispute between both of the world’s leading powers.
So far, this LAC has served as the de facto border between these two countries. Since, India is close to complete a major upgrade of border roads, including a strategic military-use road that connects an airfield at Dalut Beg Oldie in northern tip of the Western section with the villages of Shyok and Darbuk towards the South, also India reactivated and rebuilt airfields along the border. It has also raised two mountain divisions and is creating a mountain strike corps to conduct offensive operations against China along the border.
Thus, the increased frequency of standoffs between the two are major cause of worry. If these standoffs drags on, nationalistic fervour is bound to kick in. The resultant public groundswell would restrict the options available to political leaders of both sides to resolve the issue.

The Chinese Invasion

The Covid-19 virus, the Ladakh standoff and the Indian Prime Minister’s stress on self-reliance have led to multiple calls for the boycotting of Chinese products and the Asian country in its entirety. With the government announcing a 20 lakh crore package and Sonam Wangchuk detailing the various reasons to boycott Chinese products, the call for self-reliance has only gotten stronger.

The Make in India campaign has so far been unsuccessful in fulfilling the vision that the BJP led Indian government had set out to accomplish. However, it was a step in the right direction as the much-needed impetus for the Indian economy. Yet a total boycott of a country and it’s products is not feasible for a country like India and will take time. The superior quality Chinese products at affordable pricing are what led to the invasion of Chinese products in almost all countries including India. The “Atmanirbhar Campaign” will act as a catalyst to the dwindling “Make in India Campaign” that has underperformed.

However, a total like to like replacement of the Chinese hardware and software will take a lot of time. The current Indian hardware and software fail to match up to the Chinese standards. Yet the Indian industries will fail to develop and mould itself quickly unless there is a surge in demand and a dire need to do so. Thus the exclusion of Chinese products is a necessity for the Indian industries to develop which in turn will lead to a creation of jobs that will serve the economy and aid in much faster growth.

Indian citizens have been quick to attack Chinese products and softwares from its creation of the, “Remove China Apps” app that removes Chinese applications installed in your phone. TikTok, a Chinese app that has 467 million Indian users has contributed substantially to the revenue generated by the Chinese application. Initially, Indian netizens had first attacked the Chinese application over a feud between a TikToker and a Youtuber which led to the app being downgraded to a 1.3 rating from its initial 4.9 ratings. However, Google was quick to remove all the recent one-star ratings from the application. With Google pulling down the recent 1-star ratings, Indians have started uninstalling TikTok along with other Chinese applications like UC Browser, CamScanner etc over the Ladakh feud and with Sonam Wangchuk leading the campaign to remove Chinese apps within a week and Chinese hardware in a year. India imports goods worth more than 50 billion dollars from China in contrast to a miserly 2.5 billion dollars in exports to China.

If India proceeds with putting a halt to the Chinese invasion in its market, India would suffer from a paucity with regard to capital goods, machinery, electricals, chemicals to go along with intermediate and consumer goods. India’s heavy reliance on China makes it difficult to put an end to imports cold turkey. India should focus on a gradual decline in imports while developing a sustainable infrastructure for the production of goods in their own country. A sound infrastructure and production in India will give a major boost that India is in desperate need of. India can then finally be independent and their over-reliance on FDI can diminish.