Newsbytes
  • India
  • Business
  • World
  • Politics
  • Sports
  • Technology
  • Entertainment
  • Auto
  • Lifestyle
  • Inspirational
  • Career
  • Bengaluru
  • Delhi
  • Mumbai
  • Videos
  • Visual Stories
  • Reviews
  • Phone Reviews
  • Fitness Bands Reviews
  • Speakers Reviews
  • Find Cricket Statistics
Hindi
More
In the news
Twitter
Gmail
Reserve Bank Of India (RBI)
Reliance
Sensex
New Labour Laws in India
Newsbytes
Hindi
Newsbytes
User Placeholder

Hi,

Logout


India
Business
World
Politics
Sports
Technology
Entertainment
Auto
Lifestyle
Inspirational
Career
Bengaluru
Delhi
Mumbai
Videos
Visual Stories
Reviews
Phone Reviews
Fitness Bands Reviews
Speakers Reviews
Find Cricket Statistics

More Links
  • Videos

Download Android App

Follow us on
  • Facebook
  • Twitter
  • Linkedin
  • Youtube
 
Home / News / Business News / #NewsBytesExplainer: Why 'boycotting Chinese goods' will not be easy
Business

#NewsBytesExplainer: Why 'boycotting Chinese goods' will not be easy

#NewsBytesExplainer: Why 'boycotting Chinese goods' will not be easy
Written by Shubham Sharma
Jun 21, 2020, 12:49 am 4 min read
#NewsBytesExplainer: Why 'boycotting Chinese goods' will not be easy

A few days ago, soldiers from India and China locked horns in the most gruesome clash along the Line of Actual Control (LAC) in decades. The conflict resulted in the martyrdom of 20 Indian soldiers and has since triggered a wave of calls to "boycott Chinese goods." But, is it really possible across different sectors? Let's find out.

Response
Clashes have angered the public

Ever since the clashes, Indians have aggressively protested against China and its President Xi Jinping. Effigies of Jinping, along with Chinese products, have been set on fire and widespread calls to boycott China-made goods, sever trade relations with the country are being made. Chinese companies in India, including Xiaomi and OnePlus, are also bearing the brunt of Indian consumers in light of the matter.

Response
Government has taken controlled action

Following the clashes, PM Narendra Modi said India wants peace but is capable of giving a "befitting reply" if provoked. Now, the government hasn't suspended trade with China but there have been some repercussions, including the termination of a Rs. 471 crore Indian Railways contract to a Chinese firm and DoT instructing BSNL and MTNL not to use Chinese equipment for their 4G upgrade.

Other steps
Some Chinese apps have also been red-flagged

Among other things, reports have suggested that the DoT is also mulling informing private telcos to reduce dependence on Chinese firms for their network gear. Additionally, Indian intelligence agencies have asked for a ban on as many as 52 'unsafe' Chinese apps - this includes prominent names like TikTok, Mi Store, SHAREit, LIKE, Helo, SHEIN, Weibo, ClubFactory, and WeChat.

Possibility
But, can the trade situation escalate from here?

However, amid calls for boycotting Chinese goods, the possibility of severing trade ties entirely looks bleak, given the economic gap between India and China ($2.7 trillion v/s $13.6 trillion) and the former's dependence on the latter. Over the years, affordable Chinese parts/goods have made their way into every Indian industry, starting from consumer durables to the digital/technology sector.

Data
What does India-China trade look like in numbers?

In FY 2018-19, India exported Rs. 1.17 lakh crore worth goods to China but imported much more (worth Rs. 4.92 lakh crore), making a trade deficit of about Rs. 3.75 lakh crore with the Jinping-led country. Chinese goods made 13.69% of India's total imports.

Reason
Chinese products are cheaper than their counterparts

The reason Chinese products are so widely used across several Indian sectors is their affordability. Specifically, China's cheap labor and raw materials, combined with an extensive network of suppliers, manufacturers, distributors with advanced technologies and trade-supporting laws, have enabled the country to deliver goods at much lower prices than its competitors in other countries. This is why China is often called "the world's factory."

Replacement?
Replacing Chinese goods a daunting task

If we consider replacing Chinese products, things would be really difficult across sectors. In the smartphone market worth Rs. 2 lakh crore, 72% of the products are Chinese. Similarly, Chinese suppliers make up 26% of the Rs. 43.10 lakh crore auto component market, 60% of the Rs. 1.5 lakh crore pharma market, 25% of the telecom equipment market, and 90% of solar power market.

Information
Same goes for other sectors

Among others, Chinese products make about 42-45% of India's smart TV market, 10-12% of the home appliances market, and 18-20% of the steel industry.

Cost
Across sectors, substitution would prove costly

That said, in the broader scheme of things, substituting Chinese products with other alternatives might be difficult in most, if not all, industries. Not to mention, even in cases where substitution might be possible, it will be hard to procure similarly-priced alternatives, be it for telecom equipment or something else. The alternatives will most likely be pricier.

Investments
Finally, several Indian start-ups are backed by Chinese giants

Beyond that, it must also be noted that several Chinese giants have invested in dozens of start-ups, including many unicorns, in India. Since 2015, the Chinese have pumped as much as $7 billion in Indian start-ups and, currently, 118 start-ups have $5.6 billion in un-exited Chinese investments, according to data from Venture Intelligence. This makes blocking out China even more unlikely.

Share this timeline
Facebook
Whatsapp
Twitter
Linkedin
Shubham Sharma
Shubham Sharma
Twitter
Editor with over five years of experience in covering all things science, consumer tech, space tech, AI, infosec, and business. A commerce graduate from University of Lucknow. I have been handling Tech beat at NewsBytes since 2018.
Latest
India
Xiaomi
Narendra Modi
WeChat
Indian Railways
Latest
Arrested Punjab IAS officer Sanjay Popli attends son's funeral
Arrested Punjab IAS officer Sanjay Popli attends son's funeral India
Deepak Hooda becomes fourth Indian to slam a T20I century
Deepak Hooda becomes fourth Indian to slam a T20I century Sports
Delhi government makes PUC certificate mandatory, automatic challans at home
Delhi government makes PUC certificate mandatory, automatic challans at home India
Ireland vs India, 2nd T20I: Hardik Pandya elects to bat
Ireland vs India, 2nd T20I: Hardik Pandya elects to bat Sports
ICC Women's T20I Rankings: Mandhana climbs to fourth spot (batters)
ICC Women's T20I Rankings: Mandhana climbs to fourth spot (batters) Sports
India
Sri Lanka under virtual lockdown over fuel scarcity amid crisis
Sri Lanka under virtual lockdown over fuel scarcity amid crisis World
Man left behind by 'baraat' sues groom for Rs. 50L
Man left behind by 'baraat' sues groom for Rs. 50L Lifestyle
Pallonji Mistry, chairman of Shapoorji Pallonji Group, dies at 93
Pallonji Mistry, chairman of Shapoorji Pallonji Group, dies at 93 Business
Congress reaches out to like-minded parties for 'Bharat Jodo Yatra'
Congress reaches out to like-minded parties for 'Bharat Jodo Yatra' Politics
5 Western dance styles for those who love dancing
5 Western dance styles for those who love dancing Lifestyle
More News
Xiaomi
Xiaomi TV A2 and Mi Band 7 launched: Check prices
Xiaomi TV A2 and Mi Band 7 launched: Check prices Technology
Xiaomi's first-ever 2-in-1 laptop, Book S 12.4-inch, launched: Check price
Xiaomi's first-ever 2-in-1 laptop, Book S 12.4-inch, launched: Check price Technology
New leak reveals price and launch timeline of OnePlus 10T
New leak reveals price and launch timeline of OnePlus 10T Technology
Umidigi Bison 2, Bison 2 Pro go official: Check prices
Umidigi Bison 2, Bison 2 Pro go official: Check prices Technology
First 100 Nothing phone (1) to be auctioned: Details here
First 100 Nothing phone (1) to be auctioned: Details here Technology
More News
Narendra Modi
Gujarat: SIT to probe conspiracy allegations against Teesta, two others
Gujarat: SIT to probe conspiracy allegations against Teesta, two others India
Germany: Energy, climate change top PM Modi's G7 summit agenda
Germany: Energy, climate change top PM Modi's G7 summit agenda World
Gujarat riots: Meet Teesta Setalvad, the co-petitioner against PM Modi
Gujarat riots: Meet Teesta Setalvad, the co-petitioner against PM Modi India
Modiji endured silently for 19 years: Shah on SC decision
Modiji endured silently for 19 years: Shah on SC decision Politics
Draupadi Murmu files presidential poll nomination in presence of Modi
Draupadi Murmu files presidential poll nomination in presence of Modi India
More News
WeChat
China bans Tencent Holdings from updating and releasing new apps
China bans Tencent Holdings from updating and releasing new apps Technology
Biden administration revokes Trump-era orders against TikTok and WeChat
Biden administration revokes Trump-era orders against TikTok and WeChat Business
Biden slams brakes on Trump's TikTok and WeChat bans
Biden slams brakes on Trump's TikTok and WeChat bans Business
Indian Government will continue ban on PUBG and TikTok
Indian Government will continue ban on PUBG and TikTok Technology
Chinese citizen journalist jailed for four years over coronavirus reportage
Chinese citizen journalist jailed for four years over coronavirus reportage World
More News
Indian Railways
IRCTC doubles limit of booking maximum tickets a month
IRCTC doubles limit of booking maximum tickets a month India
Mitali Express: Third India-Bangladesh passenger train flagged off today
Mitali Express: Third India-Bangladesh passenger train flagged off today India
IRCTC Q4 results: Net profit up 106%, final dividend announced
IRCTC Q4 results: Net profit up 106%, final dividend announced Business
5 most scenic rail routes in India
5 most scenic rail routes in India Lifestyle
Power crisis: Home Minister Amit Shah holds high-level meeting
Power crisis: Home Minister Amit Shah holds high-level meeting India
More News
Next News Article
Next News Article

Love Business news?

Subscribe to stay updated.

Business Thumbnail
India News Business News World News Politics News Sports News Technology News Entertainment News Auto News Lifestyle News Inspirational News
Career News Bengaluru News Delhi News Mumbai News Mukesh Ambani Indian Premier League (IPL) Karnataka Samsung Xiaomi West Bengal
Bihar Virat Kohli Rohit Sharma Haryana Narendra Modi Arvind Kejriwal Tamil Nadu Gujarat Yogi Adityanath YouTube
Instagram Hollywood News Uttar Pradesh Kerala Netflix Bollywood News Mamata Banerjee Maruti Suzuki Rahul Gandhi Elon Musk
Shah Rukh Khan Chelsea FC OPPO Akhilesh Yadav Indian Cricket Team Apple Manchester United Salman Khan Cryptocurrency OnePlus
Amitabh Bachchan ICC Women's World Cup Vivo India vs Sri Lanka
About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive IPL 2022 Schedule IPL 2022 Points Table Find Cricket Statistics
Follow us on
Facebook Twitter Linkedin Youtube
All rights reserved © NewsBytes 2022