Monday, September 19, 2011

The growing China threat

China has become a top exporter, accounting for roughly 10 per cent of global merchandise exports. This manufacturing giant presents both an opportunity as well as a challenge. It is a cheap and critical source for procuring inputs such as power equipment, auto-components, electronics & computer hardware, pharmaceutical ingredients and coking coal, besides being an important export market for India.

It is also a challenge, as Indian businesses feel threatened by cheap import of manufactured goods from China.

It is, therefore feared that sectoral negotiation in WTO, which aims at deeper tariff reductions in 14 sectors (including chemicals and allied sectors, electrical/electronics, industrial machineries, textiles & clothing) will further open up India's domestic market for imports from China. Besides, a free trade pact with China is also being considered. more