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Seeking solutions for a more sustainable India-China trade – send in your suggestions

July 16, 2010

After telecom  and power equipment manufacturers, cotton traders, toy manufacturers,  soda ash importers  and iron ore exporters, it’s now the turn of electrical equipment manufacturers to raise a hue and cry  about cheap Chinese equipment entering the market.

Recently the Indian Electrical and Electronics Manufacturers Association (IEEMA) appealed to the government of India against cheaper imports from China, which comprise roughly 90 percent of India’s electrical components market. The IEEMA has requested New Delhi to impose an anti-dumping ban on electrical equipment such as  transformers, insulators, AC circuits, motors, electric meters and towers worth Rs 4,000 crore every year.

The problem is rhetoric and exists in every sector, –  India continues to import cheap Chinese equipment until it suits the market. Traders and manufacturers enjoy the huge margins and bask in profits, however once chinese imports hit public, domestic manufacturers the industry sits up in arms. Chinese equipment is criticised for being of poor quality, and Beijing subsidized equipment is touted as being cheap. China isn’t given a proper explanation for why the goods were served an anti-dumping duty and after expiration of the trade tariff term, Chinese imports resume. The industry in both countries, suffers a slight set back during the standoff and as has now become the norm, rides the tide until trade doors are open again.

In keeping with our tradition of seeking collaborative answers from the people of India and China, Inchin Closer asks you, the reader, with enough China-India experience to suggest innovative solutions to block this blow hot, blow cold attitude between our trade. We believe that since we are all stuck in this trade conundrum together, it is only from within us that a solution can arise. As a result, we seek sustainable, practical solutions from you,  that we can suggest to trade bodies and take to government agencies so that trade between China and India doesn’t remain so whimsical.


2 Comments leave one →
  1. gregorylent permalink
    July 16, 2010 2:19 pm

    china dragon boat vs. kerala snake boat competition.

  2. July 22, 2010 11:50 am

    Thanks Gregory!

    In fact, China on a similar vein China has warned both India and the US that any attempt to politicise outbound investments by Chinese firms or “abuse” investment protection tools to protect domestic industries would hurt bilateral ties.

    Frustrated over the hot-cold singnals India sends China, Chinese Commerce Ministry spokesman Yao Jian told the China Daily, “On the one hand, Chinese enterprises are encouraged to actively adjust themselves to the changing environment overseas, but on the other hand, we strongly call for some individual nations and regions not to abuse trade and investment measures against China, citing national security excuses”.

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