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Boycott of Chinese goods: China warns of impact on India-bound investments

[Bregs]

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NEW DELHI: Amid calls from some quarters for boycott of Chinese goods in ongoing Diwali season, China on Thursday said any such move will negatively impact the India-bound investments from its enterprises and also the bilateral cooperation between the two countries.




China also asserted that any such boycott would not have much impact on its exports, but "without proper substitutes, the biggest losers of the boycott of Chinese goods will be Indian traders and consumers".

In a statement issued here, the Chinese embassy said China is the world's largest trading nation in goods, with its exports in 2015 amounted to $2276.5 billion.

"The exports to India accounted for only 2 per cent of China's total exports and India's boycott of Chinese goods will not have much impact on China's exports.

"China is more concerned that the boycott will negatively affect Chinese enterprises to invest in India and the bilateral cooperation, which both Chinese and Indian people are not willing to see."

Amid rising tension in India-Pak ties, there have been calls from some fringe entities, including through social media platforms, about boycott of Chinese goods to protest against China's support to Pakistan.

Apex traders body CAIT (Confederation of All India Traders) recently said the sale of Chinese products may decline by 30 per cent this Diwali.

India is a big market for Chinese products and over the years import of toys, furniture, building hardware, crackers, lighting and electric fittings, furnishing fabric, office stationary, electronic appliances, consumer electronics, kitchen equipment and appliances, gift items, watches etc from China has increased to a great extent.

Chinese products are generally low-priced which is the root cause of infiltration of Chinese goods in the Indian market, CAIT had said.

In its statement, Chinese embassy referred to reports that local sellers in Sadar Bazaar, the largest wholesale market of household items in India, have complained about their Chinese goods sale dropping by at least 20 per cent.

"The boycott effect will not limit to Diwali related products, but extended to other Chinese products that are not related to the festival. In the long-run, boycott will not only hurt Chinese goods sale, but also cause negative effects to consumers in India," it said.

The embassy further said China-India trade cooperation has deepened over the years and the bilateral trade has grown 24 times in 15 years, from $2.9 billion in 2000 to $71.6 billion in 2015.

"China has become India's largest trading partner, source of imports and fourth largest export market. Moreover, India is the China's largest trading partner in South Asia and ninth largest export market in the world," it said.

According to the statement, the distinct features of China-India trade are mutual benefits and growing inter- dependence, which contributes to the full use of factors of production and maximization of the benefits to all the people.

"In 2015, China has imported 2 billion dollars worth of cotton and more than 100 million dollars worth of black tea from India, bring benefits to 1.2 million cotton growers and 50000 tea farmers and sellers in India.

"Moreover, 60-70 per cent of Indian APIs for its pharmaceutical industry are from China. China has played an important role in Indian pharmaceutical industry's march to EU and America market.

"China also exported a lot of electronic and household products which are attractive both in price and quality. Chinese products not only lowered India's inflation rate, but also fulfilled Indian ordinary people, especially the low- income people's daily needs, greatly improved their life quality."


http://timesofindia.indiatimes.com/...ia-bound-investments/articleshow/55096140.cms
 
China needs to understand that its not Indian govt which is putting these banners but shopkeepers and wholesalers. Indian Govt. is helpless when people decide to boycott products from certain country.


Chinese investments in India have been dismal year after year around 1 b$ a year and two way trade is heavily biased in favor of China so India is least concerned if the trade decreases in future
 
Ok .Even if it hurts , Indian consumers why should the Chinese concern about it?.

Chinese still couldnt get it .
This is a democracy , in here Govt cant force anything against the people unlike that in China .
Indian Citizens can see what Chinese are doing in this region.
You chose a wrong way mr Chinese.


And noone in here beg the Chinese for investment .We have Western nations,Japan,Russia etc for investing in there .World fastest growing economy dont have to bother about investment .

This is going to be a long term development .
@beijingwalker .Now you can understand .That is what I am talking about it .
 
China understands this very well they are facing the original power of people, not their pathetic version of "People's power" sh!t.

And I think it is just Diwali specific, once the Diwali is over, everything will be back to normal.
 
China understands this very well they are facing the original power of people, not their pathetic version of "People's power" sh!t.

And I think it is just Diwali specific, once the Diwali is over, everything will be back to normal.

I dont think so .Democratic tools are working here .

In here I would give a thumbs up to Indian media.They are the one that spwarheading this campaign
 
It is more loss for China. There is the trade that favors China. Any decrease in exports will hurt China more. Yes, overall the effect on Chinese export will be negligible as Chinese exports to India are just 2% of overall Chinese exports.
 
China needs to understand that its not Indian govt which is putting these banners but shopkeepers and wholesalers. Indian Govt. is helpless when people decide to boycott products from certain country.


Chinese investments in India have been dismal year after year around 1 b$ a year and two way trade is heavily biased in favor of China so India is least concerned if the trade decreases in future
China is more concerned that the boycott will negatively affect Chinese enterprises to invest in India.
which means chinese govt won't do anything negative. it would be investors volunteerily doing it.
it had increased to 2.5 Billion in last 3 months.
 
It is more loss for China. There is the trade that favors China. Any decrease in exports will hurt China more. Yes, overall the effect on Chinese export will be negligible as Chinese exports to India are just 2% of overall Chinese exports.

Only the financial loss do not matter here for a country like china which wish to be on par with US globally, The boycott if it reached to the level which it will in due time, it will hurt overall Chinese reputation when world's biggest market starts boycotting there goods for reasons which all are aware about
 
China is more concerned that the boycott will negatively affect Chinese enterprises to invest in India.
which means chinese govt won't do anything negative. it would be investors volunteerily doing it.
it had increased to 2.5 Billion in last 3 months.

China needs India more than India needs China. Chinese economy is slowing down and the Chinese investors are looking to invest abroad, and India is a hot market right now. If Chinese don't invest it is their loss. Some other country will invest.
 
It is more loss for China. There is the trade that favors China. Any decrease in exports will hurt China more. Yes, overall the effect on Chinese export will be negligible as Chinese exports to India are just 2% of overall Chinese exports.
It is not the numbers Chinese should be worried about, but they know that their growth numbers are at stake and Indian market is ready to absorb a huge amount of their products. Japan and other western countries are saturated now.

China if in next decade doesn't review its India-Pakistan policy then it will hurt their own growth, if they prefer defense market of Pakistan over huge market of 1.25 billion in India then best of luck to them.

They can export electronics but they will not get the strategic exposure to India market which I think the South Korean and Japanese are getting at the moment. Within a decade once India starts manufacturing electronics in its own territory then China will have to look for some thing else to sustain its development and if they think they should keep pro-Pakistan policy then keep hitting your foot, you might be strong but one day it will hit yourself badly.
 
Only the financial loss do not matter here for a country like china which wish to be on par with US globally, The boycott if it reached to the level which it will in due time, it will hurt overall Chinese reputation when world's biggest market starts boycotting there goods for reasons which all are aware about

It is not the present financial losses, but future losses that China is more bothered about. India is going to grow to be as big market as China. Any space that China cedes to western investments now is going to bite it in future.
 

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