Boycott Made in China? | Realistic Solution by Dhruv Rathee
Hello friends,
The standoff between India and China in the Doklam region still continues
This disputed region lies between
China and Bhutan
where neither the
Chinese nor the Indian army is ready to retreat
As I mentioned in my previous video
about this psychological tactic and
ploy of China to suppress her neighbouring countries
and to put pressure on them
In the end of that video I also mentioned
to drastically reduce the use of Chinese products as much as possible and to boycott them
In this video, i will tell you in detail
about how realistically it is possible to
boycott the Chinese products
Let us see
First we have to understand
the export-import situation between India and China
In 2014-15,
India imported $ 60.4 billion worth of Chinese products
and India exported only $ 11.9 billion worth of Indian products to China
You can see how huge is this imbalance
China exports 6 times more to India
than what India exports to China
It is called as 'Trade deficit'
which is certainly not good
Every country aims to reduce the trade deficit
as much as possible
There is a trade deficit of about $ 50 billion between India and China
It used to be low in 2010 but
has steadily increased over the years
Since China is exporting more than what it is importing from India
So it is in a "Trade surplus" situation with India
It is just reverse of 'Trade deficit' situation
It is advantageous to be in a ' Trade surplus' situation
It is because the country to which products are exported
becomes more dependent on you
if you increase the price of products
that country has to pay more
But at the same time if both the countries
go for 50% reduction of total trade between them
then China has to suffer more in terms of loss
as it is exporting $ 60 billion worth of products to India
China will suffer a loss of about $ 30 billion
If Indian exports reduce by 50% from $ 10 billion
then India will suffer a loss of about $ 5 billion
In this case China has to suffer greater loss
India has to focus on
how to reduce import of Chinese products
and possibly replace them
The solution to this problem coming mostly to people's minds
is that why the Indian govt. does not
impose ban on Chinese imports
but imposing a ban
is not a solution in fact it is not possible
According to WTO rules
no country can impose a ban on trade
with any specific country
without any reason
even if there is an ongoing military conflict with that country
So such a step is not possible
Even if we presume it is possible for Indian govt. to ban
all Chinese imports
Imagine what will happen to the imported products worth $ 60 billion in India
India has to suffer a heavy loss because of it
Where will those products come from?
So imposing a ban is not a solution
In fact, to replace the Chinese products is the solution
People will say in order to replace
start using Made in India products
It is pleasant to hear
and should be encouraged to do
but just imagine $ 60 billion worth of products
were coming from China
it is very unlikely that such a number of Made in India products
will fill the markets on a short notice to replace the Chinese products
It is not possible to replace them as large scale manufacturing does'nt happen in India
The realistic solution to this is
to replace the Chinese imports gradually with other countries
The first country to figure here is
Taiwan
If we analyse the breakdown of products India imports from China
I have done in this excel sheet
all the data has been recorded from WTO website
41% of the products that India imports from China comprises of
mechanical and electrical equipments
It includes
cell phones, washing machines and TV
In order to replace them
we have to look around for other countries
The countries making such type of products are Japan
South Korea, Germany and other European countries
India can import products from these countries
and use their products as replacement
India has held better ties with these countries
with good trade relations
Evidently, India should focus on
increasing trade with these countries
consequently replacing trade with China
One country that figures out here especially is
Taiwan
The relations between India and Taiwan
hold a great potential in the current scenario
India has never extended her hand directly to Taiwan
In fact, none of the Indian PMs
have ever visited Taiwan
It is because of the fact that India never wanted to harm her relations with China
China believes and considers Taiwan geographically
as a part of its territory
China believes that Taiwan is not a separate country
But the way China is escalating border conflict with India
and exercising undue psychological pressure on countries
India has a golden chance to extend friendly hand
towards Taiwan
I would say that PM Modi should become the first PM
to visit Taiwan
and start trade talks between India and Taiwan
This will put great psychological pressure on China not only in terms of trade
but on the ongoing Doklam issue also
Finally, I would like to say that this initiative to replace Made in China products with
Made in Taiwan, Made in Korea and Made in Japan products
needs to be taken by companies and traders
Neither the government nor the public as
citizens and consumers can do much in this issue
because in the present scenario
almost 80-90% of the market is flooded with Made in China products
we have no other option except than to buy those products
what will we do?
Hence it is very essential for companies and traders to understand
that we as consumers will not mind paying a little more
for a product made in Taiwan or Japan
instead of Made in China
But we as consumers and citizens
should reject Made in China products as much as possible
We should put pressure on those companies and traders and make them realise that
if they continue to sell Made in China products
we are not going to buy them
I know that
this is possible to a certain extent
There is a limit to it
After all then it depends on our necessity
if we don't buy a product we badly need then
how we will run our homes
I know and understand this issue
but we must try as much as possible
The main decision in this issue needs to be taken by the
company bosses and traders watching this video
I would like to request the company bosses and traders
that if you sell a product at a slightly higher price
which is not Made in China
even then it is certain the people will readily buy them
In fact,I will say that
if you put a signboard in front of your shop
denoting that "Made in China products are not sold here"
then seeing your signboard many more will throng to your shop to buy
You can certainly test it
Government should promote the Indian industry
as much as possible
Made in India products should be promoted
in order to give impetus to manufacturing in India
Hope you have liked this video, friends
Please share and spread the suggestions of this video
among the traders, company bosses and government officials
so that all may play their roles effectively
Please share this video with all of them
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See you in my next video friends
THANK YOU
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