India and China Border Standoffs are not new. Back in 2017, there was a standoff between India and China on the issue of Doklam – A territory which is claimed by both China and India’s Ally Bhutan.
On 16 June 2017 Chinese army – PLA ( The People’s Liberation Army of China) began extending an existing road southward in Doklam ( A disputed Territory). This lead to a military standoff between India and China as India supported Bhutan’s Claim on Doklam.
This Military standoff between India and China lasted from June 2017 – 28 August 2017 (2 months, 1 week and 5 days). Standoff got over when both Indian and Chinese army deiced to withdraw their troops from Doklam.
But now there is again a standoff going on between India and China at ladakh. The standoff took place when PLA brought more than 5000 Troops in the eastern Ladakh Sector. This intrusion was stopped by the Indian Army immediately.
This growing aggression and adventurism from China has lead to a narrative in India which is Boycotting of Chinese Products.
Would India Really Benefit by Boycotting Chinese Products?
Would India Really Benefit by Boycotting Chinese Products? To answer this questions, lets first understand the trade relations between India and China.
Both India and China are super powers in Asia, China being the 2nd Largest Economy and India being the 5th Largest Economy in the world.
In recent years, there has been a rapid increase in the trade and economic relations between India and China.
China currently is India’s second largest trading partner in goods. United States of America is India’s largest trading partner.
This is not the same for China. The United States of America is also China’s largest trading partner in goods. But if you look at the top 5 Trading partners for china, India does not even makes the list.
Top 5 Countries Where China Exports the Most
1. United States: $481 billion
2. Hong Kong: $304 billion
3. Japan: $148 billion
4. South Korea: $110 billion
5. Vietnam: $84 billion.
India is the not the largest trading partner of China nor does it even comes in the top 5 countries where china exports the most.
India is the 7th largest Trading partner of China.
Now lets see the top 5 countries from where China Imports the most?
Top 5 Countries Where China Imports the Most
1. South Korea: $203 billion
2. Japan: $180 billion
3. Taiwan: $177 billion
4. United States: $156 billion
5. Germany: $106 billion
Now let’s talk about India’s Trade Deficit to China!
Before we talk about Trade Deficit, let’s understand what trade deficit actually means.
A trade deficit means a country is buying more goods and services than it is selling.
India’s trade deficit to China in 2018 reached US $57.86 billion. This data shows that India is buying more goods and services from China than it is selling to China.
How Much does India Import from China?
How much does India exports to China?
For more information on import and export with regards to other countries – Click here.
Now that we have understood the trade relations of India with China, its very clear that China is the one who is benefiting from this trade relation.
So Would India Really Benefit by Boycotting Chinese Products?
The narrative of boycotting Chinese products arises whenever there is India China Border Standoff.
But would India really benefit by boycotting Chinese products? Will it stop the PLA from doing misadventures along the LAC?
The answer is a big NO!!
The reason being is that Chinese exports to India accounts only to 3% of its total export. So even if India boycotts Chinese products, it won’t really affect China’s exports or its economy, but this would definitely affect India’s economy as India’s export to china is more than 5% which is higher than Chinese Export to India.
So instead of boycotting Chinese products, India should try to benefit from this trade relations.
India should increase its manufacturing units and start exporting more products to China. This will help India achieve trade surplus. It is always better for any country to have a trade surplus rather than having a trade deficit.
To conclude, it is practically not possible to boycott Chinese Goods as long as India does not develop the manufacturing infrastructure and environment that would be needed to suffice the needs of its people.
Boycotting Chinese products will only hamper the trade relations between India and China and in the end it would hamper India’s economy the most.
China on the other hand should respect the status quo to maintain peace and tranquility in the region.
China should be aware of the fact that India is not the same that it used to be in 1962. India is not just powerful in terms of military but it also has good bilateral relations with other powerful countries in the world.
I hope India China border Standoff comes to and end as it affects the stability in the region.
