China-India Trade Tensions Seem To Be Continuing In 2024, However, Beijing Doesn’t Want To Disturb The Status Quo
India’s punitive charges on Chinese industrial laser machinery seem to be adding fire to the anti-dumping investigations on made-in-China products. Though Chinese responses were measured, New Delhi has raised concerns about the growing international trade deficit with Beijing. According to analysts, India’s harder line on Chinese imports is not going to develop an all-out trade war. At the beginning of this month, New Delhi announced levying anti-dumping charges of 147.2% on Chinese industrial laser machinery for 5 years. The bilateral relationship between the countries has already been overshadowed by the border dispute in the Himalayas and India is getting more significant in the world for the containment strategy used by the USA against China.
For India’s anti-dumping investigations on Made-In-China products, Beijing has conducted 2 inquiries on a pigment and pesticide and an insecticide ingredient from India. Beijing also declared in February that an Indian phthalocyanine pigment established dumping and levied duties of around 30.7%. One of the famous analysts, Alicia Garcia-Herrero says that a trade war is doubtful because India depends on China and it continues to grow. It is very expensive for India to import from the Europe or USA. He adds that the trade finance ties are not symmetric, and China is fortunate with India’s growing dependence and Beijing doesn’t want to disturb the status quo as the capital city fears that India may get into de-risking like Europe and the USA.
Even with these trade tensions, the popularity of Chinese products in the Indian market is still enduring. Surveys show that 55% of the Indians in a survey said that they purchased Chinese products in the past year. The survey found that regardless of the anti-China sentiment and the increased competition from home brands, Chinese products are the preferred choice for Indian customers. In August 2023, both of the countries agreed to give priority to the de-escalation of the Himalayan border. India has membership in the Indo-Pacific Framework for prosperity. It is a strategy guided by Washington to debar Beijing from important supply chains.
Popular analysts have a perspective that the current trade tensions and inquiries are a feasible way for India to speak out about its concerns. However, India seems to be capable of betting on supporting and strengthening its domestic manufacturing environment in the middle of efforts taken by international investors to diversify.