Our correspondent in India,, Hu Bofeng
Under the title “China-US trade war, India can benefit” – India’s “Economic Times” and other media reported on the 28th that a study by the Indian business sector showed that after the US launched a trade war against China, US exports to China had been curtailed by China. The impact on competitiveness caused by the high tariffs is an excellent time for India to strengthen its exports to China and seize the US position in the Chinese market. The report also said that if India can successfully seize this opportunity, the trade deficit of 63 billion US dollars between India and China can be expected to quickly equalize.
The report analyzed in detail at least 100 Indian commodities with export potential to China, such as cotton, corn, almonds, wheat, sorghum and so on. “Economic Times” quoted the report as averring that “fresh grapes, cotton, flue-cured tobacco, lubricating oil, and chemical products such as benzene were important varieties of US exports to China , whose total export value could exceed 100 billion US dollars.” Exporting these goods to China is expected to expand the scale of exports.
A person familiar with the report contacted the local media and said, “After the US launched the trade war, the trade confrontation between China and the United States has intensified. US exports of Chinese goods have a huge tax component compared with other countries’ exports to China. However, China’s huge market demand has not changed, which is a major business opportunity for India and market space for it to strengthen its exports to China. India’s Financial Express said that after the United States launched a trade war with China, China imposed a high tariff of 15% to 25% on goods from the United States, but only 5% to 10% on goods exported to other countries. Normal tariffs. The report specifically pointed out that under the framework of the revised Asia-Pacific Trade Agreement of 2005, India’s exports to China enjoy an additional 6% to 35% tax rebate, making them more competitive.
Bloomberg of the United States also paid attention to this news on the 28th. The report quoted sources as saying that the Indian Ministry of Commerce and Industry had instructed the Embassy in China as a promoter to arrange relevant meetings for Indian exporters in China. Amarendra Pali, a senior researcher at the South Asian Institute, said that the US trade war against China will largely reshape the global supply chain, which is important for India, which urgently needs to increase its export s to China. While this was good, it was still too early to say whether India would benefit from the Sino-US trade war.
“Interestingly, the Indian Minister of Commerce and Industry, Prabhu, recently convened a meeting to discuss the strategy for increasing India’s manufacturing exports by 2025.” India’s “Business Today” website said on the 28th that this report will provide a blueprint for that goal. According to data released by the Ministry of Commerce of China in April this year, the volume of bilateral trade between China and India increased by 20.3% in 2017 to US$84.4 billion. China is India’s largest trading partner, and India is expected to rank among the top 10 trading partners of China.