25 trade relief cases launched throughout the year

According to China Trade Relief Information Network, India launched 25 trade relief cases against China in 2020, including 24 anti-dumping and 1 anti-subsidy, ranking first in the world. When doing business with India, terminal connectors, female header and truck reflectors field should be noted.

   4 Chinese APP banned throughout the year

 On the evening of 29 June 2020, The Indian government abruptly banned the use of 59″ Chinese APP”.” in India, including TikTok, WeChat, Weibo, QQ mailboxes, UC browsers, etc 25 July, WeChat formally limits its users in India to send and receive messages. In 2020, for four times in a row, disable mobile applications with Chinese background.

 Beginning in 2021, india continues to “demonize “: according to indian media report on january 25, the indian department of electronics and information technology has issued a new notice, making the executive order issued last june banning 59 chinese applications, such as TikTok、WeChat、UC browsers, a permanent ban.

Furthermore, at the end of 2020, India was not included when the cumulative 15 countries of China, Japan, the Republic of Korea, Australia, New Zealand and ASEAN signed the Regional Comprehensive Economic Partnership Agreement (RCEP), which was signed by the 10 countries.

As an important Asian country, India finally chose not to join the RCEP. After years of negotiations India does not join RCEP although there are economic, institutional, strategic, mentality and other specific reasons, but the “re-game” mentality is very obvious. An objective analysis of the specific reasons why India did not join the RCEP included the following:
India’s economy has made great achievements in recent years, but its industrial structure is extremely unreasonable, has been dominated by services, industry, especially manufacturing has been a low proportion of the total economy. Combined with Prime Minister Modi’s 2014 push for “made in India” did not achieve the expected results, import dependence and long-term trade deficit. At present, India has a trade deficit with 11 of the 15 member countries of the RECP, due to India’s weak manufacturing industry, small and decentralized production, high product prices and lack of international competitiveness.
Mechanical and electrical products account for only 10 per cent of total Indian exports, while primary products account for one third. Many industrial products, such as cement and steel, cost more than 20% or more than 30% of the international market. But India believes it has a huge domestic market and its products can meet the domestic market.

India’s agriculture mainly depends on government subsidies, low degree of modernization, can not be compared with Australia, New Zealand, Japan and so on. If RCEP, tariffs are reduced or eliminated, weak industries such as manufacturing, agriculture, dairy products will be hit, some enterprises will be closed and workers will be unemployed.

As a country with long-standing tariff and non-tariff protection measures, India had the highest tariffs among its RCEP members and had previously signed a free trade agreement with India, which had demanded greater concessions from other countries. For example, India’s CEPA( Comprehensive Economic Partnership Agreement with Japan), India’s tariffs on Japanese products were reduced to 7.5 percent, while Japan’s tariffs on Indian products were reduced to 3.3 percent.

This time, because of the large number of member countries, some countries are lower than India’s economic development level. It is more difficult to make greater concessions to India alone. India’s trade deficit has widened because of fears of being taken advantage of by countries such as China, Japan and South Korea, while it has repeatedly negotiated basic tariff rates, rules of origin, trade in services, markets and investment rules.

Worried about the impact of joining the RCEP on related industries and the consequent unemployment of millions, which is not in line with its vision of revitalizing manufacturing, India chose not to join RCEP.
2. Worried about China-led RCEP

India has been very worried about the rise of China, its foreign cooperation policy is always dominated by itself, actively promoting the BIMSTEC( Bay of Bengal multi-domain economic and technical cooperation organization),” monsoon plan “,” Indian Ocean Regional Cooperation Alliance “,” Indian Ocean Naval Forum “and so on.

Among the RCEP members, China is the largest economy and one of the five permanent members of the United Nations Security Council. Western media and indian sources agree that RCEP will be dominated by china or that china will lend RCEP to further expand regional influence. The former Indian Foreign Minister, Kanwar Sibal (Kanwal Sibal), said the “Indo-Pacific Strategy” countries demanded “against China “, while RCEP strengthened economic ties with China and diluted the role of the Indo-Pacific Alliance.

As a result, India is reluctant to join a RCEP dominated by China

3. Opposition by domestic forces

India is the politics of election and interest game, and its foreign policy is influenced by many factors. At present, India not only has serious political division, but also the economy has not formed a unified market. His country had always had a different voice on whether to join RCEP. The main opposition comes from weak competitive small and medium-sized enterprises and farmers, as well as some domestic political forces. The former belongs to the bottom, low income, unable to bear the competitive pressure and risk brought by the RCEP, and the latter opposes joining the RCEP mainly for political purposes.

At great pressure, Modi’s government had to give up joining the RCEP, to maintain its domestic ruling base.

4. Decline in economic growth

In recent years, in order to promote economic growth, Modi’s government has issued a large-scale investment plan and actively improved the business environment in order to attract foreign investment, develop the manufacturing industry and industrial chain, but the effect is unsatisfactory. At present, India’s economic decline is serious, domestic protectionism is high. In 2020, India’s economic growth rate hit a new low in decades, affected by the epidemic. As economic growth fell, reforms stalled, debt rose, unemployment rose, and people were struggling, opposition parties and less competitive farmers, businessmen and businessmen began to frequently attack Modi’s government. If the government signs RCEP, opposition pressure is greater.

5 Leave room to follow the Indo-Pacific Strategy

For a long time, India has pursued a pragmatic foreign policy. At present, in the framework of regional cooperation, in addition to RCEP, the United States and other countries actively attract India to join the “Indo-Pacific Strategy “, Brexit Britain also hopes to sign a free trade agreement with India. India believes that the current period of development opportunities, all parties have to India, they can be put to the price.

Because of the overestimation of its influence, the United States, and the retreat of the “India-Pacific strategy “, India is either” overpriced “or” haggling “on RCEP issues, which makes negotiations more difficult.

How to Consider Sino-Indian Trade Relations

Under the circumstances of great changes in the international pattern and difficulties in Sino-Indian relations, India’s choice needs to be viewed objectively, calmly and rationally. In the future, China and India, as well as other relevant countries, should strive to eliminate mutual misunderstandings, bridge differences, jointly promote the process of regional economic integration, and create a better future.

Post time: Feb-01-2021