China is engaged in a fierce inimical hostilities with Bharat. Yet, we have been bolstering the Chinese economy by purchasing Chinese products, worth more than 4-5 lakh crores a year, leading to industrial closures, large scale unemployment and wide trade deficit for the country, ranging between $45 to $52 billion a year in last 3 years. In the bilateral trade of $71 billion last year, China exported goods worth of $58.33 billion to us, and imported goods worth mere $11.76 billion. Consequently, due to wide trade gap, the value of rupee has sharply declined by 30% in 6 years, from Rs 50 in 2011 to Rs 65 per dollar now. Besides more than 300 industry verticals, 200 industry clusters and 3 lakh small and medium scale units are facing imminent closure, whereby more than a crore persons may be rendered jobless either directly or indirectly. All types of large and small scale industries ranging from cycle, cycle parts, furniture, stationary, toys, glass, plastics, LED bulbs to electricals, electronics, computer hardware, solar panels, telecom, radical tyres, machine tools, steel, textile, leather wears, pharma, agrochemicals and so on have been turning sick, one after the other, as a result of trade war being waged by China, which is also aimed at deindustrialization of one sector after the other and one industry cluster after the other.
China first targets a sector to lead closures of units in it by cheap dumping and then raises price to exploit us. For instance, after causing closure of several bulk drug and ative pharma ingredient units, now China is exploiting India in several industry verticals. It has doubled the price of Amoxicillin in a year and raised the price of Folic Acid 11 times from Rs. 4,500 per kg to Rs. 50,000 per kg in 2016. India has been adding value to Chinese brands, for instance more than 50% smart phones being sold in India are Chinese and several Chinese brands have gained international repute solely due to patronage of Indian buyers. In March 2017, Indian buyers contributed 73% of total international sale of Vivo brand of Chinese smart phone, 67% for Xiomi, 48% for Oppo, 42% for Lenovo, 25% for Gionee and so on. In the computers, the largest selling PC is the Chinese Lenovo, and its cheap dumping in the last 5 years has led to closure of, both, the computer hardware manufacturing units of India viz. the Zenith and Wipro. Today, more than 80 per cent of the solar panels and allied equipments being imported are Chinese, almost rendering the domestic equipment manufacturers sick. The import surge from cheap dumping by China has been causing severe industrial sickness and closures, leading to huge non-performing assets (NPAs) for banks. The cost-of-production of solar panels in China is $0.51 per kw, while they are dumping them at a price of $0.40 per kw, solely to cause closure of Indian units. The US had to impose 238% anti-dumping duty on Chinese panels to save its industry. India too may impose all three types of protective duties on cheap Chinese dumpings. The three kinds of duties are the safeguard duty (to save and safeguard domestic industry), the countervailing duty (to offset the Chinese subsidies) and antidumping duty (to prevent dumping at below the domestic costs and prices).
China has acquired 22% share in Taming the Dragon India has been unwittingly supporting the Chinese economy at the cost of indigenous industrial units. While the industry in Bharat has slumped, that of China has flourished SWADESHI CAMPAIGN 23 July_2017_ Org_Organiser Dummy.qxd 7/13/2017 8:14 PM Page 14 July 23, 2017 n Organiser OPINION 15 world manufacturing, even pushing the US at number 2 with mere 17.6% share in world manufacturing, where as India has only 2.1% share in world manufacturing. By importing Chinese goods worth Rs. 4 lac crores on record and a little less than this of the record or by under-invoicing. So, we are empowering a formidable enemy like China, by adding Rs. 6-7 lac crores per annum into their GDP or manufacturing, by importing and buying their goods. Chinese hostilities are perpetuating ever since the installation of communist regime in 1949 and it has attacked in 1962 and forcibly grabbed 38,000 square kms area of in India Aksai China, approximately equivalent to the area of Switzerland, having an area of 41,000 square kilometer. Now, it has been relentlessly committing boarder violations ranging between 150-400 in a year, atrociously terrorizing our citizens residing in the border areas, obstructing entry into prestigious international fora like the Nuclear Suppliers Group and the United Nations Security Council (UNSC) and vetoeing our anti-terror proposals in the UNSC.
China has seven times vetoed against India’s proposal to get Maulana Masood Azhar declared as an international terrorist, the most dreaded LeT terrorist released after Kandhar plane hijack and who had established Jaish-EMohammed, another terrorist outfit. It has also vetoed India’s proposal in the UNSC brought against Jammatud dava on 3 occasions, once in case Al- Akhatar Trust once each in cases of Abdur Rahman Makki, Azam Chima, Hisbul Mujahuddin and Salauddin. In these one dozen vetoes no Chinese interest was involved, except to inflict insult and humiliation on India. Recently this June, China started constructing a road from Doklam in Bhutan (inspite of fierce Bhutani resistance and India’s opposition), to illegally pass through Sikkim and and create threat at the chicken’s neck, connecting the North-East with the rest of India. It has even, forcibly dismantled two bunkers of the Indian army in Sikkim by bulldozers, and our army had to forcibly evict the Chinese security forces, last month. The Chinese had even diverted water from a tributary of Brahmputra in retaliation against our surgical strike in Pakistan, expressing solidarity with Pakistan. China has also been developing the “China-Pak Economic Corridor (CPEC)” and the “One Belt One Road (OBOR)” through Pak-occupied Indian Territory of Jammu & Kashmir, defying our objection. Once the OBOR, connecting 65 countries through rail, road and maritime routes with Chinese domain over this new silk route, China would emerge as a more formidable neo colonial super power for the world.
It is worth mentioning here that the Chinese economy at present is in doldrums, after 25 years of relentless growth, wherein the China has itself estimated lowest ever economic growth rate for 2017, almost after 25 years. The International Rating Agency Moody has also downgraded Chinese Credit rating, first time in 28 years. Chinese corporate debt has shot up to $18 trillion, almost equal to 170% of their GDP and the total debt of the Chinese economy is at $28 trillion, almost equal to 250% of its GDP. At a time, when the US is already going to eliminate, its huge trade deficit of $350 billion with China and on this occasion, if in India, we would also boycott Chinese goods, then the Chinese economy is bound to falter. But, if we would continue to bolster the Chinese economy by purchasing Chinese Products and brands, then this formidable enemy of India and of the global mankind, would be difficult to handle and tame. People, worldwide must be encouraged to boycott Chinese goods, through calls on social media, as China is the largest polluting country in the world, causing worse ever human rights violations not only in the China, Tibet and Hong Kong but, into several other countries across the Asia and Africa. So, India can now well pull the trigger to give a decisive blow for precipitate a crisis in the Chinese economy, by boycott of Chinese goods and inspiring people around the world, to curb the hegemony of this neo colonialising Chinese regime, grabbing vast resources in Africa and elsewhere, and for posing serious threat to the environment, global peace, tranquility and human rights violations across the world.