April 18, 2021

Why India Must Boycott China ? Reallity of China.

India china

The Big news is trending that we must Boycott China products but Why India Must Boycott China?

The border tensions between India and China are the worst than they have been in several decades More than 20 Indian soldiers have lost their lives.

Because of this, the sentiment of “boycott China” has started trending again in India.

To express this emotion some people are even throwing their Chinese TVs out of their homes While some are breaking Chinese toys.

To make this Boycott china movement successful then it is not going to happen by breaking TVs and toys.

We need to understand the root causes first of how the Chinese Communist Party wants to dominate the world

and what dirty tactics they resort to for achieving this- Economically, Politically, and Geographically.

Don’t harbor the misconception that only India is facing such a problem.

The border intrusions that China is doing in India, China is doing a similar thing with Taiwan simultaneously.

So, China is not just a threat to India but poses a danger to all the democratic countries across the world

When I say” China” here, I am only referring to the Communist Party of China.

A party that has established its complete dictatorship over the people. The Chinese people are not at fault here.

I would like to begin with the basics of trade Why would any country trade with other countries?

There could be three main reasons.

  • The non-availability of a certain product in your country while it is available in another country.

For example, bananas were not available in Britain, in the UK, prior to 1633 because their climate was not suitable for growing bananas

So, they would want to trade to import bananas

  • The second reason could be the availability of a product or service in another country, at a cheaper price as compared to your own country.

A good example of this would be the call centers in India

US companies have set up their call centers In India because it is cheaper for them to do so here as compared to the US.

  • The third reason could be the availability of a product or service of better quality in another country That is why you would want to trade with them.

So the advantages of trading are very clear Consumers will have more choices and have access to cheaper goods.

Every country will be able to specialize in its own indigenous areas and be able to build better products and this could benefit all the countries internationally.

So economically it’s good for every country.

In fact, trading is so beneficial that research indicated that for every 1% increase in the trade, there is a 0.47% increase in the GDP to per capita ratio of that country.

So, there is a clear cut relation here- trading increases the GDP of a country

# Let us now see how the Chinese Communist Party misuses trade and tariffs against the other countries

# First weapon is Chinese Dictatorship.

Chinese Dictatorship
Chinese Dictatorship

China joined the World Trade Organization in 2001.

China while joining the WTO  promised to liberalize and open up its economy further, so that trade could be easily conducted between China and the other countries

But today, 20 years later, China has opened up its economy to some extent But speaking broadly, China has aggressively misused the WTO for its own benefit.

So, what is the situation today?

You can find made in China products in almost every country across the world

But the largest social media networks in the world- YouTube, Facebook, Google, Amazon are nowhere to be found within China.

China has not allowed them to enter its region.

This is a one-sided trade, in this away China allows the export of made in China products very easily but restricts the entry of other countries within their own region Instead.

It has copied these companies and pilfered their technology and created copycat clones of these companies within their country Today.

Youtube is replaced by Youku, Amazon by Alibaba, Google by Baidu and Facebook by Weibo

These are all copy cat companies that stole the entire concept and ideas and have created their clones to prevent the other companies from reaping benefits.

No matter which country a new technology is introduced in, clones will be developed in China.

Normally it would not have been possible in a democratic country.

For instance, if a company of the UK wishes to clone the product of a US company,

then the US company can file a case in the courts in the UK But there’s no question of court cases in China.

The dictator government there promotes these cloning companies and keeps them protected from these things

In fact, the rules have been twisted in China to ensure benefits to these companies.

# The second weapon of China is what is called “Dumping” in economics.

Dumping Strategy
Dumping Strategy

 

Dumping refers to the export of a locally made product at such ridiculously low prices

so that it would drive the local industries of that country out of business.

Your market share would increase and you would gain a monopoly in that industry and you would then take control of that particular industry in that country.

For instance, take the example of the toy manufacturers of India who manufacture toys at a certain cost.

But Chinese companies come in and sell these toys at much lower prices

So the consumers would prefer to buy the less expensive Chinese alternatives

And if this continued for a couple of years- If nobody wishes to buy the Indian toys

the Indian toy makers would be driven out of business and the Chinese would gain a monopoly over the Indian toy industry

You might wonder how China is able to manufacture goods at such low prices that enable it to indulge in dumping

There is a simple answer to this- The Chinese government supports dumping.

The Chinese government provides export subsidies to companies.

They are provided with money and subsidies to export and dump in other countries

USB sticks,calculators, Vitamin C and E, nylon cords, measuring tapes, CFL lamps caustic soda, kitchenware, tableware, solar cells

This is a list of items that China is believed to be dumping in India.

A news report yesterday stated that China has begun dumping of very important medicine in India and the Indian government is considering a tax hike on it to stop the dumping.

And India is not the sole country (that is facing this problem) Investigations are currently ongoing in Australia over how China is dumping steel and aluminum in Australia

So, due to these  reasons and the dumping tactic, China is able to export so much more than what it imports today

Its trade remains in surplus when compared to most other countries.

The local industries of the rest of the countries are destroyed by being driven out of business and makes the other countries dependent on itself

These are the methods used by it.

So the lesson is that the Indian government should keep its eyes open and remain alert and keep a tab of all the things that China is currently dumping

in India to raise taxes on them accordingly and stay vigilant regarding these things.

# The third tactic is Currency Manipulation.

Currency Manipulation
Currency Manipulation

 

China is accused of deliberating undervaluing its currency in comparison to the US dollar in order to maintain its cost advantage.

So that the cost-benefit of 30-40% is maintained whenever someone wishes to buy a made in China product

The low value of the currency that it maintains would not remain so if viewed in the free market

So this is another accusation that is leveled against China

As a result of these reasons- the unfair trade practices, dumping, pilferage, and the currency manipulation done by China

These are the reasons due to which Donald Trump had declared a trade war against China

Donald Trump had hiked the import tariffs to prevent China from harvesting these benefits and the trade war would have caused both the countries to incur losses.

Politically, the Chinese Communist Party is trying to exert its influence in the internal affairs of the other countries through nefarious means

A great example of this is Australia China is trying to manipulate the people in the internal politics of Australia

It has been alleged that China made several thousand Wechat accounts to defame and poke fun at the Australian Prime Minister

# The fourth tactic is the” Debt Trap.”

Debt Trap
Debt Trap

 

I have only spoken about the Western countries and India until now but even the African has not been spared by China

Taking advantage of the poverty of the African countries

China constructs highways, dams and large infrastructure projects at the expense of crores that is loaned out to them

and China is well aware that these African countries would not be able to repay it back and when these countries are unable to repay their loans, China buys strategic locations in these countries

It assimilates them by physically occupying them If there is an important port, China takes over it by sending its military and then puts it to its own use

This is called the “debt trap” of African countries by China” Search and read up on it

A lot of material is available regarding it. It destroys a country completely by trapping it in debt

There are several examples of this.

  • Take the example of Zambia- a country in Africa.

2018 report revealed that the Zambian government was selling off the entire control of its National Electricity Company to China because it did not have money to repay China.

  • The biggest and the most important port in Kenya– the port of Mombasa was forfeited to China because Kenya did not have money to repay China.
  • Nigeria is set to become the next country to fall into the debt trap of China
  • An island in the Maldives has been sold off to China completely.
  • Hambantota is a very important, strategic port in Sri Lanka.

Sri Lanka first got China to construct it And when Sri Lanka was unable to repay China.

China took up the entire port of 15,000 acres on lease for 99 years

This port has a very strategic location which is extremely close to India China can use it for anything- for its military warships, its navy or even its army

# Some Facts.

Furthermore, there is no free media or opposition in the country

due to the dictatorship in China which could hold the ruling party accountable in the wake of corruption or wrongdoing.

This is the reason why, when the diseases like COVID 19 spread outside from their country nobody knew anything about

what they had done or whether all information had been disclosed or not.

There is no free media to report that So these are the ways in which the Chinese Communist Party is exerting its influence on the rest of the world

You can see that saying “boycott China” and breaking TVs and toys would not have much of an impact China.

It is playing the game on the next level by trapping the countries in debt traps and by resorting to dumping

These small steps will make no difference India would have to begin thinking on the next level to counter China.

The good news is that China is against all- Australia, Europe, USA, and even Africa

So, if all of these countries come together and unite against China then there is some hope.

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