Chinese Economics Thread


Petrolicious88

Junior Member
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How serious is this Boycott China movement in India. India is serving as a testing bed to what could happen to Chinese goods in other countries. How serious is this?
 

mglcz

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China should encourage both 'traditional based architecture' and green architecture. The combination would make Chinese cities unique and livable. I'm glad we are seeing an end to the horrendous copycat buildings.
 

Chish

Junior Member
Registered Member
How serious is this Boycott China movement in India. India is serving as a testing bed to what could happen to Chinese goods in other countries. How serious is this?
On the surface, very serious, very emotional,very impulsive. Reality is very much different. Situations in every country are so varied. Most of the people in the West calling for boycotting of 'Made in China' goods refused to accept some reality check, calling them cheap, poor quality imitations.
Chinese manufactured goods according to their customers needs and affordability. As the saying goes, The customers are always right. If Chinese products are that bad, boycotts are not necessary. Capitalism will take its course. Most importantly, the best selling 'Made in China' products are actually Western owned brands, designed, developed and marketed in the West but made in China due to China manufacturing efficiency. This this boycott call is really a political and personal opinion going against economic logic. Sure it will cause some losses to China, but who loss more? The boycotting nations who are in economic chaos now are effectively locking themselves out of the world biggest trading market and the chance of a quick recovery. China on the other hand has a bonus, a vibrant domestic market for support.
 
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Tam

Major
Registered Member
How serious is this Boycott China movement in India. India is serving as a testing bed to what could happen to Chinese goods in other countries. How serious is this?
Experts are saying its not going to get very deep, since India cannot manufacture many of its stuffs and still has to source them from China. For example India is known for manufacturing generic medicines. What you don't know is that they have to obtain the chemicals for such from China.
 

10thman

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How serious is this Boycott China movement in India. India is serving as a testing bed to what could happen to Chinese goods in other countries. How serious is this?
I don't know whether India can serve as a testing bed.
I feel that different countries react differently to a similar situation.
For example the COVID-19 situation.

I didn't fact check the news but electronic components from China needed for India manufacturers are stuck in India clearance.
It's that bad until India-based US firms have to ask the Indian government for help.
It seems that there is a government level "boycott" which creates a lose-lose situation.
I think or hope that not many countries would do this.

On a side note, a ban which is on a higher level than boycott is more serious, the effect is more immediate and certain.
For example the China app ban in India.

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India is reportedly putting some containers from China on hold during clearance for all-round inspection and scrutiny amid the recent stand-off between the two nations, following a fatal border clash. It is a stupid choice which will backfire and hurt global industrial chains, a Chinese expert said.

Boycott campaigns of some Indian residents may still be understandable to express anger, while it is a foolish move for the country to play such tricks to obstruct cross-border logistics, as they will hinder the operations of India-based firms and their investment environment, Long Xingchun, president of the Chengdu Institute of World Affairs, told the Global Times on Thursday.

Reuters reported that Apple, Dell and Cisco products were also in the containers and have been held up in ports, as well as pharmaceutical consignments, which rely heavily on Chinese supplies.

Indian officials claimed that the move was not related to the recent border tensions, media reported.

Hard hit by the coronavirus, the Indian economy is having a hard time trying to recover from months of lockdowns, and a prolonged shipment of Chinese raw materials and parts is self-destruction, Long noted.

India-based US firms have already felt the impact of the availability of components usually shipped from their facilities in China, and have reached out to the Indian government for help, Indian Express reported on Thursday.

Chinese firms are only part of global value chains. The containers facing prolonged scrutiny broke an industrial chain which may include Japanese or US suppliers in the upstream and India-based manufacturers in the downstream, Long said.

For instance, Apple’s factory in India depends on components and parts from China, Long noted.

The latest commander-level bilateral talks have eased tensions between the two countries, and India, after a deadly provocation, realized it was not wise for the country, Long said. He thinks the scenario will not last long due to India’s huge economic costs.
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Chinese app service providers hamstrung by India's ban could begin closing their offices and shedding local jobs in the country in a month's time, an industry insider told the Global Times Thursday.

The comment came after the Indian Army reportedly ordered to ban 89 mobile apps starting July 15. The ban is a further step taken on Chinese apps after the Indian government made a decision to shut down 59 Chinese apps.

Apps developed by Chinese companies such as messaging app WeChat and the hugely popular short video app TikTok, and US apps such as Facebook and Instagram are affected.

Chinese tech unicorn ByteDance, owner of TikTok, said last week that it is anticipating a loss of $6 billion after three of its apps were banned in India. TikTok, with 611 million downloads in the first quarter this year, is already a behemoth in the industry.

Chinese companies running other apps will also incur a loss from the outright ban, and a large number of companies may opt to close their offices in India and terminate local jobs because of the ban, in one to three months, an industry expert said.

Game apps with developers based in China will see a loss of advertising revenue, but the hit for apps focusing on content production, which hired local jobs for localized production, will be higher. These companies were burning money in exchange for fast market expansion.

"Many of the small companies that were developing apps in India will face an abrupt cut-off of revenue," said Richard Ma, an industry insider.

"Many Chinese start-ups, in their early financing rounds, are hurt hard as they had never thought of a backup plan for the sudden Indian ban," Ma told the Global Times.

"The third quarter will be a watershed. If there are no signs the ban will be lifted in one month, in a couple of months we will see an exodus of the app service providers," Ma said.

Experts expect a wave of job layoffs from India's ban on Chinese apps, which is deemed part of a broader crackdown on Chinese businesses following a recent border clash in the Galwan Valley.

Sha Jun, executive partner at the India Investment Services Center of the Yingke Law Firm, told the Global Times Thursday that apps banned by India would suffer at least $10 million in loss on average, and for large operators like TikTok which has a high user base in India, the loss would be too high to calculate.

"Losses include fixed expenses, defaults and missed business opportunities as well as a plunge in market value," Sha said.

How long Chinese companies will last in the market with the ban in place will be closely watched, experts say.
 

Chish

Junior Member
Registered Member
India made one fatal mistake. That is: India strategy to increase foreighn direct investment is based on an anti-China intention. India trying to lure companies out of China (because of the virus) to set up in India. Modi government is setting up better conditions for foreign firms to sweeten the moves. But foreign firms moved or are planing to move to Vietnam, Thailand, Malaysia and even Bangladesh and Africa even before the covid-19 pandemic due to various economic factors. India was not and still is not the country of choice. Apart from India own very poor infrastructure, the other countries are more successful because they operate with China supply chain infrastructure. Because of the India anti-China mentality, the supply chain is broken or hardly existed. Not many companies are welling to accept the shortcomings and take the risks. Foreign firms operate on economic values, not political favoritism.
 

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