Need for aChina strategyWhat is the US ban on ChinaThe US has raised tariffs on a range of Chinese imports, including electric vehicles, batteries, and computer chips.
China has surpassed the US as India's biggest trading partner.
This raises concerns for India, especially as the US and EU try to lessen their reliance on Chinese goods.GTRI suggests India needs a well-defined "China strategy" to navigate the changing trade landscape.
This strategy should consider potential product dumping, opportunities for Indian exports, and reducing reliance on Chinese imports.The US tariff hikes are part of a larger effort to address what it sees as unfair trade practices by China.
These practices include alleged technology transfer theft and cyber intrusions.
Need for a
China strategy
What is the US ban on China
The US has raised tariffs on a range of Chinese imports, including electric vehicles, batteries, and computer chips. This move aims to pressure China over trade practices seen as unfair, but it could have unintended consequences for India.A think tank, the Global Trade Research Initiative (GTRI), warns that India might become a "dumping ground" for these newly-taxed Chinese goods.With the US market less accessible, China may look to offload these products elsewhere, potentially harming Indian businesses in the same sectors.The report highlights India's growing trade dependence on China. China has surpassed the US as India's biggest trading partner. This raises concerns for India, especially as the US and EU try to lessen their reliance on Chinese goods.GTRI suggests India needs a well-defined "China strategy" to navigate the changing trade landscape. This strategy should consider potential product dumping, opportunities for Indian exports, and reducing reliance on Chinese imports.The US tariff hikes are part of a larger effort to address what it sees as unfair trade practices by China. These practices include alleged technology transfer theft and cyber intrusions. However, some experts worry this move might lead to a full-blown trade war.The report also points to a trend of rising protectionism by developed countries like the US and EU. These countries are using tariffs and subsidies to boost their own industries, potentially hindering global trade.The US President Joe Biden this week announced steep tariff increases on an array of Chinese imports including electric vehicles, computer chips and medical products. Biden will keep tariffs put in place by his Republican predecessor Donald Trump while ratcheting up others, the White House said in a statement citing "unacceptable risks" to U.S. "economic security" posed by what it considers unfair Chinese practices that are flooding global markets with cheap goods."China's using the same playbook it has before to power its own growth at the expense of others by continuing to invest, despite excess Chinese capacity and flooding global markets with exports that are underpriced due to unfair practices," White House National Economic Adviser Lael Brainard told reporters on a conference call.The new measures impact $18 billion in Chinese imported goods including steel and aluminum, semiconductors, batteries, critical minerals, solar cells and cranes, the White House said.
