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India's trade body has urged Prime Minister Narendra Modi to restrict imports of knitwear from China. Earlier, according to information released by the China Trade Remedy Information Network, within 10 days in late September, India had launched 13 anti-dumping investigations against Chinese products.
In addition, according to Chinese customs statistics, from January to June 2023, China's import and export data to India is also declining, and economic and trade exchanges between China and India have decreased.
Industry urged restrictions on imports
At present, the Indian textile industry is facing the dual pressure of slowing export demand and the influx of imported fabrics and garments. According to the All India Knitting Association, import supply is also eating into domestic demand.
A survey by the association estimated that undervalued synthetic knitwear imports from China cost £570 billion ($685 million) a year.
In a letter to the Prime Minister's Office, the association explained that during the April-August 2023 period, synthetic fiber knitwear imported under HSN code 60063200 accounted for 74% of the total synthetic fiber knitwear volume at an average price of $1.41 per kg.
By contrast, domestic production costs currently hover around $4 per kilogram.
In response, the association said that India's domestic industry is losing market share due to unfair competition. More important, low-priced imports are eating into domestic demand.
Therefore, the agency asked the government to take immediate measures to restrict the import of synthetic knitwear from China below cost.
It is not only recommended that the government immediately impose anti-dumping duties, but also that quality control orders be imposed on finished products rather than raw materials such as fibers and yarns.
In line with the 'Make in India' policy previously promulgated by the Prime Minister to promote value addition through the country's manufacturing sector, the association has requested the Prime Minister's Office to convene a meeting as soon as possible to discuss this urgent matter.
India wants a "trade war with China"
A few days ago, according to relevant information, since September 20 to September 30, India has intensively decided to launch 13 anti-dumping investigations on China-related products.
The field of investigation involves transparent cellophane film, roller chain, soft magnetic ferrite core, trichloroisocyanuric acid, epichlorohydrin, isopropyl alcohol, thermos bottles, fasteners and other chemical raw materials, industrial parts and other products.
Among them, in the anti-dumping investigation launched by India against China, the top three industries are chemical raw materials and products industry, pharmaceutical industry and non-metallic products industry.
It is understood that between 1995 and 2023, the world's anti-dumping cases against China totaled 1,614. Among them, the top three countries/regions are India 298 cases, the United States 189 cases, the European Union 155 cases.
In the trade remedy cases initiated by China against India from 1995 to 2023, there were only 12 anti-dumping cases, 2 countervailing cases, and 2 safeguard measures, totaling 16 cases.
So it can be said that India has almost 25 times as many anti-dumping cases against China as China has against India.
As we all know, China has become India's second largest trading country, the United States remains the largest source of India's trade surplus, while China is the largest source of India's trade deficit.
This has made India dissatisfied and hostile to China, trying to restrict imports to China under the banner of "trade protectionism" and imposing dumping duties on Chinese products.
Earlier, the Indian Ministry of Commerce and Industry held a meeting attended by as many as a dozen ministries at the beginning of the year to discuss how to reduce imports of products from China to solve the "Sino-Indian trade imbalance" problem.
One of the measures is to step up anti-dumping investigations against China, the sources said. Some other analysts believe that the Modi government intends to take the initiative to launch an "Indian version" of the "trade war with China".
Total trade between China and India has declined
Recently, according to Chinese customs statistics, from January to June 2023, the total value of China's imports and exports to India was 66.027 billion US dollars, down 0.8% year-on-year. Among them, the export was 56.531 billion US dollars, down 0.9%; Imports were $9.496 billion, down 0.6%; The trade surplus was 47.035 billion U.S. dollars, down 1% year on year.
In June, China's imports and exports to India totaled $11.205 billion, down 9.4 percent year-on-year.
Among them, the export was 9.774 billion US dollars, down 8.1%; Imports were 1.431 billion US dollars, down 21%; The trade surplus was $8.343 billion, down 5.8% year-on-year.
From the above data, it can be seen that from January to June 2023, the total value of China's imports and exports to India was basically flat compared with last year, but the total trade has declined compared with the previous year.
Earlier, the SOE minister said at the third Belt and Road Forum for International Cooperation that trade relations between China and Indonesia have become increasingly close, with the rapid growth of trade activities between the two countries, and the total bilateral trade has reached 2041 trillion rupiah.
However, as India implements the hedging strategy against China and actively strengthens the strategic cooperative relationship with the United States and the West to balance China, the logic and foundation of Sino-Indian relations are constantly changing.
In addition, India has also targeted Chinese companies in India.
It seems that China-India relations will face more challenges and opportunities. With the improvement of the level of economic and social development of the two countries, there will be more exchanges and cooperation between the two countries in various fields.
However, there is also potential for cooperation between China and India. Both sides emphasize maintaining regional stability and development rather than conflict and confrontation. Therefore, it is possible for China and India to resolve their differences through dialogue and cooperation and jointly promote peace and prosperity in the region.
However, to achieve this goal, the two sides need to overcome the difficulties caused by territorial disputes and geopolitical competition, and build a foundation of mutual trust and cooperation.
In this process, the direction of China-Us relations will also have an important impact on China-India relations. If China-Us relations can achieve win-win cooperation, China-India relations will also be conducive to improvement and development.
If Sino-US relations fall into confrontation and conflict, China-India relations will also face more pressure and risks.
(Source: External Cross Research Center)
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