#Boycott China: economic measures aimed at Chinese firms
Part of: GS Mains II – India and its neighbours; International Relations
In news:
India to consider a range of economic measures aimed at Chinese firms amid the border tensions.
59 Chinese apps were banned and Union Power Minister said India would not import power equipment from China.
The State power distribution companies would not place orders with Pakistan and Chinese firms for equipment as the sector is strategic and essential, and was vulnerable to cyberattacks.
Minister for Road Transport and Highways said Chinese companies would not be allowed to take part in road projects.
The government is also considering trade and procurement curbs targeting China.
The government is also increasing scrutiny of Chinese investments in many sectors, and weighing a decision to keep out Chinese companies from 5G trials.
Do you know?
The above moves could potentially cost Chinese companies billions of dollars.
It is a clear message from India that it cannot continue trade and investment relations as normal, if China does not agree to return to the status quo of April before its incursions along the LAC began.
However, China is far less dependent on India’s market than India is on Chinese imports.
India relies on China for crucial imports for many of its industries, from auto components to active pharmaceutical ingredients (APIs). Between 70% to 90% of APIs come from China.
India should focus on self-reliance in many of the above sectors.
