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AUGUST 2020

Amid Reports Of Reciprocal Troop Pullback, India Rues Technological Dependence On China

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Amid Reports Of Reciprocal Troop Pullback, India Rues Technological Dependence On China

The location of the deadly clashes between Indian and Chinese troops in June

Amid reports that India and China may be pulling troops back from the Line of Actual Control in order to defuse tensions and reduce the likelihood of more fatal clashes, a report in the Hindustan Times notes that while calls for a boycott of Chinese goods are emotionally satisfying they are not feasible. The analysis by Biswajit Dhar reviews the economic and technological dependence of India on Chinese goods and technology in several key sectors such as electrical and pharmaceutical goods, and concludes that a boycott is not a realistic option until and unless India elaborates a ‘carefully calibrated industrial policy’ to achieve economic and technological independence.

Media reports suggest that India and China have begun pulling back from several areas along their remote Himalayan boundary, a move aimed at defusing a nine-week standoff between the two nuclear-armed neighbours that resulted in the loss of lives on both sides. LINK

Xinhua news has reported that a Foreign Ministry spokesperson said during a press briefing on Thursday that the overall situation at the China-India boundary is stable and ameliorating, expressing the hope that both sides will work towards the same goal to implement consensus that have been reached with concrete actions and de-escalate tensions in the border region.

Spokesperson Zhao Lijian said the Chinese and India border troops have been taking effective measures to disengage at Galwan Valley and other areas in the western sector, following the consensus reached at the corps commander-level talks.

“The overall situation at the China-India boundary is stable and ameliorating,” Zhao said. LINK

The spokesperson added that the two sides will continue to maintain dialogue and communication through military and diplomatic channels, including holding a new round of corps commander-level talks and the meeting of the Working Mechanism for Consultation and Coordination on China-India Border Affairs.

However, the situation clearly remains tense amidst ongoing allegations that China is installing permanent structures in the disputed area not far from where the clashes occurred last month.

In particular, satellite images from June show a series of bunkers, tents and storage units for military hardware in an area where there were no visible structures the month before.

Amid Reports Of Reciprocal Troop Pullback, India Rues Technological Dependence On China

Satelllite image apparently showing reecent Chinese constructions in the Galwan Valley

The fresh satellite images, dated 22 June, are from space technology company Maxar. The structures which appear to have been built by China overlooking the Galwan River were not visible in aerial photographs earlier in June. LINK

Meanwhile, pundits in India are pondering the extent of India’s economic and technological dependence on its northern neighbour as many Indians call for a boycott of Chinese-made goods. The calls for the boycott of Chinese products have persisted for several weeks now, but is raises the inconvenient question – to what extent can the Indian economy cut itself off from China? Would it even be possible to boycott Chinese-made products in the foreseeable future?

One important point is that China had established itself as India’s largest source of imports since around 2004-2005. Between 2003-04 and 2007-08, a period of rapid expansion of the Indian economy before the “Great Recession” struck, the nation’s imports from China expanded from about $4 billion to over $27 billion, or at a compound growth of nearly 61%. Consequently, China’s share in India’s total imports more than doubled, from 5% to 11%. Over the next decade, China’s expansion in the Indian market continued and by 2017-18, China’s total share of India’s imports had expanded to 16.4%. In the two financial years since, this share dropped slightly to 14%. However, the strategic significance of Chinese imports for the Indian economy remains undiminished.

The raw numbers do not give the true picture of India’s dependence on China; imports at the product level do. There are two major sectors in which India’s dependence on China is particularly important: electronic products, including telecommunication equipment, and active pharmaceutical ingredients (APIs), the intermediate ingredients for manufacturing pharmaceutical formulations. Both these sectors are immensely significant for India. While the former is critical for the government’s Digital India programme, the latter supports India’s pharmaceutical industry that is responsible for supplying affordable medicines, both for the domestic market as well as for export.

It is no surprise that a large proportion of the mobile phones that India imports are from China. In 2017-18, more than 90% of India’s imports of mobile phones and components were sourced from China. Data shows that in the following two financial years, imports from China came down significantly, but the reality is that Hong Kong is acting as a conduit for China’s exports to India. In 2017-18, India’s imports from Hong Kong were nearly $11 billion; the following year it increased to over $18 billion. As the British did before it, China has long used Hong Kong strategically to distribute its products and disguise the origin of international financial flows. Thus, when sentiments in India were against China following the Doklam dispute, Hong Kong began to be used to tranship products manufactured in China. Therefore, in effect, there was no real reduction in imports of mobile phones from China.

Other imports of electronic and telecommunications equipment from China were equally significant. Although there is a common perception that large volumes of consumer electronic products are sourced from China, the fact that 82% of colour TV sets imported into the country in 2018-19 were from this country will come as a surprise to many. Further, 80% of optical fibres and 92% of personal computers were imported from China in 2018-19.

The dependence on China is even worse in the case of APIs. Among the medicines whose APIs are imported is paracetamol, an essential medicine in the first aid kit of every household. In 2018-19, the entire stock of imports of this medicine came from China. The same was the case with streptomycin, an antibiotic used for treating several bacterial infections, including tuberculosis. Besides these medicines, China was the source of 95% of imports of APIs for penicillin and 98% for ibuprofen, a common medicine used for treating pain, fever and inflammation of various kinds, including arthritis. The APIs of many other critical medicines are also sourced from China.

The list of industries which depend on China for their essential supplies is fairly long, but there are two that are important. The first is the motorcycle industry, which, in 2018-19, sourced 85% of its imports of parts and components from China. While most motorcycle components are obtained locally, the industry imports critical parts such as wheel rims from China. India is also heavily dependent on China for solar photovoltaic cells, which are expected to be the lifeline of the energy sector as the country seeks greener options.

If Indians are serious about reducing their dependence on Chinese products, it will require the government and businesses to make concerted efforts and elaborate a carefully considered strategic industrial policy. While its oligarchs have proven themselves capable of building immense fortunes in captive markets, their capacity to act strategically in the national interest remains unproven. In some sectors, especially in the production of APIs, the government will have to play a more proactive role by using public sector units, as three decades of the growth of the Indian pharmaceutical industry has shown that the private sector is not willing to invest in a segment that involves considerable risk-taking. In other words, only a carefully-crafted industrial policy can reduce India’s dependence on China.

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  • <>

    The world and especially the U.S have turned China to what it is today – an economic monster that uses their money and influence to confront other countries in order to win territorial disputes. India is the only country that is capable of facing China in a conventional war, and India must be independent from Chinese goods. Japanese or Korean products are better in quality, the world needs to wake up and stop funding China. I hope Trump starts putting sanctions on China, the more the better.

    • bla

      Hello Israeli jew brainwashed soldier

      Isn’t your cause the fake European colony named Israel and Iran’s destruction ?

      About this: an economic monster that uses their money and influence to confront other countries in order to win territorial disputes

      How about mentioning the thousands of deaths of civilian people by the USA military and heir proxy head choppers to steal oil and minerals from other countries ? Unilateral economic sanctions , threads , associating with known terrorists.. and the list goes on ..

      But that’s ok right ? because the USA can do what they want , also Israel ?

      When your fake European Rothschild colony gets their so desired war, you think your ZioNazi politicians will stay with you and the people until the end ? They will just migrate to US or UK or Argentina (where you scum Zionazis plan to migrate once Israel is destroyed ) and YOU the useful idiot will stay there and DIE for them..

      Think about it a little , by the way, before you start calling me anti semite and all that crap, please note I am not anti Jewish I just don’t like ZioNAZI scum, that you defend so much..

      What a fucking stupid comment: ” I hope Trump starts putting sanctions on China, the more the better ”
      USA depends on China you moron !! Almost any product in the US and the world says Made in China..
      Take your head out of your ass my friend…

      • <>

        It has nothing to do with our politicians, Israel as a land belongs to the all the Jewish people not one politician or another. If a war comes and they escape for their lives so be it, I don’t fight for them I fight to defend my fellow countrymen, men women and children from Isalmic terrorists. So you see, you can call me in names but it doesn’t change my loyalty to my family, country and God. Unlike the politicians, you don’t buy us with money or property and we will teach our enemies a proper lesson once we get the greenlight to start any operation. Dying for Israel is something that we respect, rather die on my legs than live on my knees to any of you Israeli haters. Now let’s start the war, me and another hundreds of thousands of IDF troops are ready.

        • bla

          My friend, take your head out of your ass for a moment, you are just a useful idiot, you are not fighting for your people, at the end you are fighting for an ELITE that follows their own interests, they don’t care for you or your fellow country men, just their money and their own selfish ZIONAZI hatred interests of ruling the world and enslave all the “GOY”. You could have all lived in peace (arabs, jews, persians, , christians, etc) but your ELITES decided long ago, that no one deserves to live, be happy or be free ONLY YOU the Israelis deserve the land, resources and happiness, just because you say so according to your religion (give me a break man)
          At the end, think about it, NUMBERS do not lie, you are 8 million Israelis against 130+ million arabs and persians all pointing out at you surrounding you 24/7. Is that living ? IS that quality of living ? that is what you are fighting for ? You steal and lie and kill 24/7 unarmed women, children and elderly what do you think decent people would think of that it is OK ? Because it is you the Israelis ? Again I say, take your head out of your ass for a moment.. have a great day sir.

          • Zionism = EVIL

            He is a teenage punk and just posts bullshit to get attention.

          • <>

            We don’t kill unarmed civilians like it shows on your media, we kill Islamic terrorists that hide among the civilians that’s why in a war they have many dead, hiding in schools, hospitals and U.N facilities. We have been fighting the arabs for over 70 years, with some we have peace with some we still have war, but our Israeli mentality is never surrender and protect our country against any enemy. I only obey orders as an IDF soldier, I don’t decide which land to take or not. Every country has0 their own strong men in power who call the shots and the rest follow, Israel is no exception. Good day to you aswell bla.

          • Zionism = EVIL

            Ask your mom first LOL

          • Ronald

            bla has some very good points Iron Zion, even if put harshly.

            If you were to ‘take your mind out of the box’ and took a break, go to neutral Kathmandu and there asked yourself if ‘obeying orders’ and “being an IDF soldier” is really to your advantage, or the advantage of that “strong man in power”, who might not even live in Israel, and who might not really care if Israel gets wiped off he map.

            This “We” is the doublethink.
            This “We” is “You obey and I take what you win for Me”.

      • Zionism = EVIL

        He is no “soldier” , but a paid teenage hasbara PUNK and posts garbage for effect. Most just downvote this moron.

    • Ivan Freely

      No. Wall Street. And we all know who runs it.

      As for conventional war, China would come up on top. It’s the cold hard truth.

      • d’Artagnan

        China would win a war against anyone. It is just too well armed and powerful now, thanks to short sighted greedy Bilderberg policies of turning it into a technological and industrial giant. Chinese people are educated and industrious while Indians are uneducated and lazy caste ridden scammers. US and UK tried to exploit the inherent Indian inferiority complex.This is the sad reality.

        • Ivan Freely

          Win in a defensive war and in their backyard. However, China doesn’t have any meaningful power projection so they won’t be able to win in a conventional war outside of their Spheres of Influence. They lack two key ingredients which is military bases and their currency isn’t considered a World Reserve Currency. But, if things continue the way I see in their modernization of their military, 2040-50 is when we see the Chinese military fully developed like the US during it’s peak.

          • NatureTruth

            Chinese are not known to be expansionist, as all their ancient strategists had consistently advised their rulers that invading wars lead only to collapse of empire.

            But they are forced to build up projection force after USNato invaded Iraq and Libya to plunder all China investment and projects, also in Africa, along BRI esp CPEC(India-US targeting Arsai Chin border to cutoff), etc.

            As Chinese increase their global investment, they need projection power to safeguard them.

            Hence we are seeing a rapid Navy built up, a/carrier strike groups. By 2030 it will regain its military might like Tang and Ming Dynasty under Hans.

          • Ivan Freely

            By 2030? IMO, that’s a little too soon. Here’s the problem for the Chinese military; they lack foreign bases. They only have Djibouti. They’re going to need a heck a lot more if they want to project power beyond their Sphere of Influence.

    • d’Artagnan

      Interesting how the hasbara trolls on all media have turned on China. The Zionists tried to befriend China even by selling stolen US technology like the F-16 clone “Lavi” blueprints, but Chinese being smart people quickly understood the insidious nature of global Zionism. Now the CIA and Mossad are running a full-time Sinophobic malicious propaganda war, second only to Iranophobia. India even with the CIA installed extremist Modi did not fall into the trap of a suicidal conflict with China, thanks to Russian diplomatic initiatives. India needs to improve relations and trade with China and benefit from the One Belt prosperity zone.

    • M.A. Lamett

      I don’t think India can face China. I know Modi is best friend with you PM Mr. Netanyahu, but unfortunately the dumb and fanatical Modi won’t be enough against China I’m afraid. India most likely will be divided into 3 or 4 regions, if Hindu madman Modi does any stupidity.

    • Saubhik Ghosh, frnd of israel

      ya mate…japs and taiwan is investing in our country and global supply chian from china will be distributed among India , vietnam, bangladesh….japan and us is also providing incentives to call back their companies

  • Tommy Jensen

    India is one of the 6 eyes for her Majesty. India is friend with UK, US, EU and Israel, the richest countries in the world as India also speaks British and is British but an Independent nation.

    China do not speaking English. China always enemy with other nations. China to eat dogs and do the Corona thing. Therefore China cant be rich as India, as India can issue sanctions against China because India is in a close friendship with US/UK/Nato/Israel, plus China is not friends with those who Matters, the Black Lives!

    Right now India invite all her Western and British friends to invest in India, but not China. China cant have any more pudding from India, before they respect India’s friendships.

  • Zionism = EVIL

    It is good to see Southfront conducting an excellent objective analysis of the situation. China is a world power that produces 60% of all global manufactured consumer and electronic goods and everyone including slum dwelling dirt poor Indians want them. Only the Jew cunts and the dumbass Americunt losers want a conflict that wiould destroy India. Luckily, as I stated many times the Indians are not that dumb and backed off pronto. In any case, the racist Americunt thugs are not doing the Indians by canceling their student visas, threatening sanctions for buying Russian weaponry and locking out the H1 Visa workers. India has huge problems with mishandling the Pimpeovirus and a war with China is the last thing they need. Even the queer cunt Modi understands that.

    • NatureTruth

      Endia under jews Zionists control (came from Iraq during Brits Raj era to trade Opium) are such fools they will bide US-Israel Zionists order to fight China, just like Oz.

      India has invaded every neighbors since 1947 independent, its still invading Pak, Nepal and China borders

      But knowing its completely out gun by China in both military & economy now, it has to pull back.

      • Fleecing Rabbi

        Hindu is also filthy creature and defecate in the streets. Not kosher!

    • Liberal guy

      What u have said is 100 %truth I live here I know u are saying just the truth

  • NatureTruth

    Expansionism Endia are part of evil axis of US & Israel Zionists. That’s why US declared their future are with Endia & Izreal(Nationalinterest).

    Endia has invaded every neighbors and 50 princely states since gaining independent 1947, conducting terrorism like LTTE in Sri Lanka. History is good insight to a nation nature.
    https://www.quora.com/Did-Indians-invade-or-rule-any-country-in-the-past/answer/Thomas-Edward-71

    To fan off Endia army aggressive pushing on big scale invading of China, Pak & Nepal borders simultaneously, Endia PM Modi was forced to admit its Endia army invasion into China border.

    Modi:”No one enter India territory or taken its post.”
    https://m.timesofindia.com/india/neither-has-anyone-intruded-into-indian-territory-nor-has-anyone-taken-over-any-post-pm-modi/amp_articleshow/76470868.cms

    Now both Pak and Nepal army are still resisting Endia incursion at border.

  • NatureTruth

    There is no slightest hope Endia can ever replace China products. Jp and West price are beyond 95% poor Endians reach.

    Without any industrialization, backward Endia is already facing severe water & power shortage, while its broken infrastructure still rely on 1960’s Brits Raj railway. UN projecting Endia will have critical drinking water crisis within a decade.

    So how is it possible for Endia to produce anything domestically or compete without clean water?

    740Mils(60%) Endians still defecating outdoor, with 90% cities & all industries have no sewage system. Hence Endia altho has world 4% water, most are heavily polluted.

    As China is a matured mfg hub for the world with most complete supply chain for economy of scale, yet facing excess capacity now, there is no demand for another mfg hub size like Endia.

    Moreover China & world industrial4.0 will AI automate all production & services to eliminate aging and labour cost issues. These will vaporize at least 800Mils global job within a decade. Hence backward poor Endia has missed the industrialization cycle completely. It can’t even match Vietnam in competitiveness.

    Endia uneducated(45% illiteracy) billions population of ave IQ=75 with explosive growth at over 20Mils p.a., coupled by a broken education and healthcare system, are not population bonus but a world nuclear time bomb. Endia best are ranked World Bottom Last in 2009 PISA Test.

    Every year 20Mils newly enter labour will find no jobs. Endia already facing 40yrs highest jobless rate in its best growth year of 2019(Congress leak).

    With a out of control COVID crisis and collapsing economy now, Endia is facing hundreds millions of jobless depending on gov food aid. Yet Endia can’t print money out of crisis like US. This will worsen as Endia COVID spread exponentially, while global economy crisis will hit Endia further.

    India may implode under 1.6Bil jobless population by 2030 even without COVID.
    https://www.quora.com/Will-India-be-the-number-1-superpower-as-US-India-propagate-or-implode-with-1-6B-unemployable-poorly-educated-population-by-2030/answer/Thomas-Edward-71

    China will achieve 50% global mfg GDP no later than 2030 with complete AI automation, and a GDP of $50T(PWC projection). It will emerge as even bigger winner after COVID crisis due to its successful containment.

    Endia will on the other hand a total human disaster, what’s more facing a COVID crisis now with war mongering leaders, dumping its only little resources in weapons buying sprees.

  • M.A. Lamett

    Go China. India is conducting one of the most moronic foreign policies I’ve ever witnessed.

  • cechas vodobenikov

    utter nonsense—India has improved conditions dramatically during the past 20 years—China more. all peoples possess different values and govern themselves differently. cooperation and trade occurs; India has a positive balance of trade with China. I believe they will cooperate…2 ancient cultures that have produced great art, literature, architecture

    • Liberal guy

      What u r saying is completely false actually its the opposite i live here I know better than u

      • Saubhik Ghosh, frnd of israel

        hey abdul…wats up…wen did ur shitiest holy book ordered u to be liberal u ISIS headchopper

        • Liberal guy

          Am Indian anti isis u bastard

        • Liberal guy

          U son of zio bastard u r a Indian traitor if u really are an Indian. Stay in tel Aviv u extremist asshole

    • Saubhik Ghosh, frnd of israel

      yes my friend….we have come a long way since our independence….we r not yet there but we r rising….