China’s state-sponsored media outlet: Global Times has issued a warning to India over its Make In India mission. In fact, the article published actually threatens India with ‘trade war’, if Indian Govt. continues its ‘protectionism’ policy towards local mobile manufacturers.
This is second such anti-India article published on Global Times, on the issue of Make in India and India’s rising power in manufacturing. Last year in September, Global Times had ‘warned’ their own manufacturers against going to India for manufacturing phones and other appliances.
Clearly, China is rattled by the popularity which India’s Make in India mission is attracting, all over the world. Their threat of ‘trade war’ clearly showcases China’s fear.
China Says Protectionism Will Harm India
In a very hard hitting and direct tone, China has accused India of ‘protectionism’, and have warned that such behaviour will only harm India’s own goodwill and reputation.
The article says, “India should resist the temptation of resorting to protectionism..”
They have quoted a statement from Narendra Bansal, founder of Indian phone brand Intex, where he says that Indian Govt. should be more supportive of Indian manufacturers.
Giving some advice to India, the article says, “Although protecting local brands from the intense international competition can buy some time for the expansion of homegrown industries, such moves will reduce local companies’ competitiveness in the long run and build an inefficient industrial system. “
India Should Learn From China?
It seems that a lot of assumptions have been made by the writer who wrote this article.
For instance, in one of the sections, the article tells us that India wants to become like China; and even shares some strategies to become a ‘manufacturing powerhouse.’
Quote from the article: “If India wants to replicate China’s success as a world factory, the most valuable experience that China has gained in the last 40 years is its opening-up policy, which opened the domestic market to foreign investors.”
Warning of Trade War?
After mentioning the disadvantages of protectionism, the article finally, very subtly, mentions trade war.
The article says: “Beijing and New Delhi should avoid a potential trade war and enhance economic cooperation in order to strengthen bilateral ties between the two countries.”
In a clearly concealed manner, and skillfully, the warning of ‘trade war’ has been thrown in at the end of the article.
Interestingly, the article also mentions Huawei Technologies Co, which will soon start their own manufacturing unit in India. As per the article, ‘supplementary levies against products from Chinese companies’ can hurt Indian employee. We couldn’t understand the logic of this statement.
Our Opinion: This article by Global China is more about the threat of Indian dominance in Asia, vis-a-vis manufacturing, rather than the issue of ‘protectionism’. In fact, there is no link between protectionism and Make in India, because rather than stopping International manufacturers from coming to India, our Govt. is actually inviting them and asking them to set up their base in India.
China is clearly feeling the heat, as they are about to be dislodged from their numero uno position of being the manufacturing hub of the world. And articles like these are just another attempt to instil fear and doubts among those, who are looking forward to doing business in India.