It’s the turn of the Confederation of Indian Industry (CII) to highlight the threat of cheap Chinese imports. “The threat of dumping of cheap Chinese products in India is real and serious,” says Venu Srinivasan, the new president of the CII.
This is something that’s been worrying many Indian companies for a while now.
If demand from China’s traditional markets continues to fall the country’s exporters will have no choice but to turn to new markets and this includes India. Given the massive global scale capacities that China has built up over the last decade, exports from the country have the potential to wipe out Indian producers across a number of sectors.
The Wall Street Journal (WSJ) carried a good report last week on the rising trade tensions between the two countries.
“We’ve always said the world is large enough for India and China, but we have a problem with a surge in exports that hurts Indian industry. It’s a cause for worry,” said the Indian commerce secretary, Gopal K. Pillai, in an interview with the WSJ.
Pillai said Beijing subsidised exporters, obstructed Indian farm imports and supported Chinese companies who preyed upon vulnerable Indian industries.
India is said to have about a dozen antidumping cases against China outstanding at the WTO, including investigations into export surges of truck tyres and industrial chemicals.