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Boycott Chinese products. Is this the solution?

Boycott Chinese products. Is this the solution?

As a citizens we are so inured to economic downfall and border dispute , I believe that we don’t speak up enough. Many citizens thinks  that the onus is on them to show our solidarity on Nationality. Lt Col Sonam Wangchuk slogan for the boycott of Chinese products has resonated all over india.

Boycotting Chinese goods is not easy it would mean fewer cheap goods for consumers in India. A reduction in the imports of cheaper capital goods would also push up production costs, making products costlier, thereby, affecting the consumers. Thus, some of the key sectors of the Indian economy are critically dependent on China. It might be a list of  500 odd categories (more than 10,000 items) out of which only 3000 items that are made indigenously in India also, but succumbing to the temptation of cheap items, of products made in China that will be boycotted by the Confederation of All India Traders (CAIT) over “continued border skirmishes”. What about the rest all items? Any initiative taken to accomplish present demand.

 At one point lets consider to boycott, then what? Are we prepared ?.

Lets start from ourselves as a businessmen i thought of  getting Chinese products out .My 80% raw material is from china. Machine is from china. And packing material i used is Jumbled with Chinese byproducts. Still i made my mind to boycott  and thought of closing the business but what next. Is my Country Prepared ? It's been boggling my mind that everything at home from Electrical switches to mobile phones all are from china or assembled with Chinese parts. Its very difficult and impossible.

Still thought of Ellaborating few things.

Lets weigh up all the pros and cons of the matter before i take the decision

Indias Favourable

1)Import is less than Export trade surplus  rupee will be stable and strong .

2) Indian Business men will get Opportunity .Employment Generation  and more import  can distort a nation's balance of trade and devalue its currency. Then i googled got below link.

http://www.worldstopexports.com/chinas-top-import-partners/ 

Below is a list highlighting 15 of China’s top trading partners in terms of export sales. That is, these countries imported the most Chinese shipments by dollar value during 2019. Also shown is each import country’s percentage of total Chinese exports.

1.   United States: US$418.6 billion (16.8% of China’s total exports)

2.   Hong Kong: $279.6 billion (11.2%)

3.   Japan: $143.2 billion (5.7%)

4.   South Korea: $111 billion (4.4%)

5.   Vietnam: $98 billion (3.9%)

6.   Germany: $79.7 billion (3.2%)

7.   India: $74.9 billion (3%)

8.   Netherlands: $73.9 billion (3%)

9.   United Kingdom: $62.3 billion (2.5%)

10. Taiwan: $55.1 billion (2.2%)

11. Singapore: $55 billion (2.2%)

12. Malaysia: $52.5 billion (2.1%)

13. Russia: $49.5 billion (2%)

14. Australia: $48.1 billion (1.9%)

15. Mexico: $46.4 billion (1.9%)

Almost two-thirds (65.9%) of Chinese exports in 2019 were delivered to the above 15 trade partners.

India comparatively has decresed it’s Import by 2.5% we did it in  2018-19. So one thing it came in mind that it won’t impact anything to china so no research of what china looses.

100% we will loose Export of Indian products to china. Its second largest after USA that’s 10.6% 78bn $.

Now again it comes are we prepared?

I answered myself its Big NO.

Why ? Question that comes to mind.

First is Iphone where i am writting this blog was manufactured by apple in china. If i use laptop or desktop that too from china. Maximum electronics is from china.

There comes the next are we prepared to meet the demand of china products.Wheres the substitute product for it? How long will it take to get Indian product .Not sooner .we have to start from bottom. Its not easy.

I think we Indians will be the sufferer at this stage so we have to do the planning. Planning to get ourselves prepared , first is mentally . Mantally means Do not compare Indian product with cost and Quality at this stage. It will take time to get cheaper.

Second try yourself first “SELFSTART” before advising others. I will try to change  the Locking system from china made to Indian made My priority.

Its not easy and India only will be in trouble. Boycott sentiment among Indians has grown as body bags and the graphic description it comes to my mind before independence pople started this agitation but it was non violant and now violent clashes “India has the fourth most confirmed COVID-19 cases in the world, They have ease the lockdown. That shows its economy is facing great pressure - particularly when it comes to the country’s large number of people living in poverty. Many face an immediate threat to survival if they lose their jobs during the lockdown.” There is clear hypocrisy in the Chinese strategic thinking, as it is reluctant to settle the border issue in Ladakh, where the sentiments have flared up, and at the same time does not want India to take any economic action against it."If India decides to boycott Chinese products, it will not make any economic sense.According to the latest data, It shows that India's bilateral trade deficit with China has shrunk this year,In the first nine months of 2018-19, India's exports to China have grown by an impressive 34 percent (as against less than 10 percent overall), while imports from its northern neighbour have declined by nearly 4.5 percent (as against an increase of 14 percent overall).The decline was mostly due to the increased exports of petroleum products to China. Reliance Industries' aromatic production capacities over the past couple of years have found its way into the export market with China emerging as one of the major destinations, according to the report in Bussiness Line.

In 2018-19, China supplied over 80 percent of the antibiotics imported by India and well above 60 percent of electronic products and components. Thus, some of the key sectors of the Indian economy are critically dependent on China.

All this above factors should be taken into consideration we require assiduous planning , we have example of Japan doing so.

So my answer is “Not possible at this Time”