Effect of COVID-19 Outbreak on the China – India Trade Relationship.

Effect of COVID-19 Outbreak on the China – India Trade Relationship is the new issue raised during a covid-19 disaster. We all know the China India border dispute, and it’s not unknown to the rest of the world also, especially the most disputed Doklam area.

Both China and India involved in the silent war because of border disputes for a very long time. Before COVID – 19 disaster, China–Pakistan Economic Corridor (CPEC) project was also a big failure for China and reason for resentment.

China started showing Doklam as part of China’s territory from 1958. After successful negotiation between China and Bhutan, this matter resolved temporarily.

India and China are considered as trade and economic giants in the world. The big reason for this is the 1.369 billion population of India and 1.435 billion population of China.

This massive population turns these two countries into the big consumer market of goods and also the high potential goods manufacturing hub for the rest of the world.

Trading between China –India started after the 1984 trade agreement, since then both countries entered and maintained bilateral trading relationship successfully.

You will amaze to know that India imports more than 70 percent finish goods from China and less than 10 percent of exports to China. That makes India a big importer of Chinese products. Seventy percent Indian market is flooded with cheap and low-quality Chinese products.

From toys to the nuclear reactor, Electrical machinery to Ships, and Fertilizers to surgical equipment and whatnot, everything comes from China. That’s also the reason to make India dependant on Chinese products.

COVID-19 is the new disaster generated and widely spread across the world from the wet market city name Wuhan of mainland China.

China has shown negligence and irresponsibility towards corona (COVID-19) spreading across the globe. Many news channels and newspapers confirmed the same.

What is Corona or COVID -19?

Effect of COVID-19 Outbreak on the China – India Trade Relationship

Corona of Covid-19 is a bank of viruses. An infected person shows symptoms like the common cold and can be dead in severe conditions.

The unique fact about this virus is, it is a fast spreader but a slow killer. One infected person can infect 100 others within 24 hours.

Symptoms start showing after 4 to 5 days, which gives sufficient time to this virus to spread within the family, family to community, community to the village, village to city, city to state, and state to country.   

Common Symptoms of COVID-19 includes

  1. Cough
  2. Fever – low grade
  3. Body ache
  4. Nasal congestion
  5. Running nose
  6. Sore throat
  7. Difficulty in breathing
  8. Respiratory symptoms

In severe cases of COVID-19, the conditions produced by the virus include

  1. Pneumonia
  2. Severe acute respiratory syndrome
  3. Kidney failure
  4. Death

The wet market of Wuhan is the most suspected source of this coronavirus. Weird and barbaric eating habits of China is always the controversial point from the rest of the world. Confirmed cases forced china’s government to shut down this market.

Death of 33-year-old Dr. Li Wenliang, creating doubt over Chinese government activities. China tried to hide actual death reasons of more than ten peoples who were infected by the corona (COVID-19) virus.

But it seems China didn’t learn from their mistakes, and all wet markets are again started running. It is still selling so-called meat, which causes the killing of millions of animals.

Many scholars believe that China is still hiding the truth about the treatment procedure and exact deaths from this Pandemics. This valuable information can save the rest of the world from this disaster.

This untrustworthy behavior of China will undoubtedly affect the trade relationship between China and India.

Probably other countries are thinking the same.

History of Pandemics Past In India

Spanish Flu 1918:- 

In the year 1918, when India experienced first of its disastrous pandemic. Within three months, the Indian medical system collapsed, and daily newspapers urged the citizens to find self-help.  

Unfortunately, around 10-20 million Indians lost their lives, and the Indian economy collapsed.

Asian Influenza 1957:- 

Reports say that Asian influenza started spreading from Madras. It took only 12 weeks to reach every city of India.

Back in 1900, the traveling rate was much lower. Spreading of viruses mainly took place within communities, schools, and occupational groups. Around 1098 people diet due to this virus.

Economic Condition of China after Corona (COVID-19) Disaster. 

Effect of COVID-19 Outbreak on the China – India Trade Relationship

Chinese always prefers to use “Make in China” products to reduce dependency over imported products. China is the only country whose export rate is much higher than the import rate.

China Deliberately promotes “Make in China” products to stop foreign firm Encroachment in their land. This policy makes China more dependant and influential in the global market.

After three months of strict lockdown period city, Wuhan has started its regular daily routine. During the corona (COVID-19) disaster, China has already launched more than 70% of its manufacturing facilities to produce and sell an ample amount of medical and hygiene products to the rest of the world.

It is China’s brilliant step to earn millions from suffering countries. Besides, countries like Spain, Georgia, and the Czech Republic are not much happy with low-quality corona testing kits.

According to a specialist, these testing kits are not good enough to test corona positive patients. It shows only 30 percent accuracy, which needed to be at least 80 percent.

China is a significant player in the export sector. Chinese economic policy is to always dominate the international market with its cheap and low-quality products.

China is a significant exporter of world leader countries like the United States of America, the European Union, Japan, and many others, including India.

India is in the top 10 list of China as a significant importer and trade partner. Indian market

To allow entry to Chinese goods into the Indian market, India has laid down its product standards. Including anti-dumping duties and countervailing duties, Chinese product managed to maintain its selling price less than Indian products. 

It can only be possible with low-quality raw material and cheap human resources, which China can easily manage. China has mass production capacity for any product.

Production Dependency of Overseas Companies on China. 

Effect of COVID-19 Outbreak on the China – India Trade Relationship

We always look for the manufacturing label on any product. There is still a trust issue when the product label indicates “Made in China.”

No matter who designed the product, china is the only manufacturer for that product, why?

There is only one answer to this question; it is “Public Demand.” Even Apple mobile, tablet, and laptop manufacturers from the USA couldn’t stop themselves from starting production for their products in China.

Like the USA, other countries like Hong Kong, Japan, South Korea, Vietnam, Germany, and India depend upon China for mass production for their goods.

Effect of COVID-19 Outbreak on the China – India Trade Relationship will also affect trade relations between other countries because, somehow, all countries are linked together through trade bonds.

Trade Relationship between China and India over Geographical Relationship.

China – India trade relationship strengthens after agreement of bilateral trade. India and China trade relationship is the most balanced, fastest-growing, and most reliable trade relationship on world economy map.   

As we already discussed, India has laid down some of its standards to import goods from China, as China also did something in favour. China reduced its import taxes on Indian products as compared to they apply to other countries.

China-India trading relationship took a turning point since the year 2003. China-India opened open border trade via silk route trading.

The explicit purpose behind the Silk route trading was to balance trade between the two countries. But china succeeds in increasing the export of more goods than imports from India.

Even though India takes strict steps to reduce import from China, Indian manufactures will not be able to fulfill its Indian market demand.

CPEC Project – Conflict Between China and India.

China Pakistan Economic Corridor, which is also known as CPEC or One Belt One Road project, is the advanced and more sophisticated silk route project between china and its old friend Pakistan.

India has its unobstructed views regarding the disputed POK area. POK, which is known as Pakistan occupied Kashmir. This part of Kashmir is still a territory of India, as India always claimed. 

CPEC includes significant power plant projects like solar, coal, wind, and hydro. This project about to build highway, motorways, and rail routes from China to Gwadar Pakistan. CPEC road routes across the Indian Territory, which is again creating a border conflict between China and India.

China had already invested more than 70 billion dollars in this project since 2013. They don’t seem to be happy with the action of India over the POK area. But, China had kept his views neutral and waiting for a constructive response from India and Pakistan to solve the POK issue.

CPEC controversies had not much effect on the trading relationship between China and India.  

Best Selling Products in India Manufactured In China.

Here bestselling products in the Indian market are manufactured in China.

Consumer Electronics: – Mobile phones, Smartphones, Laptops, Tablets, Earphones, Bluetooth devices, Computer mouse, Smartwatch, and Car GPS.

Office consumables: – Printers, Projector, Pen drive, Memory card, Data cable, LED screens.

General household items: – Toys, Play station, video game, 

LED TV, Shoes, Clothes, Camera, Camera accessories, LED lights, first copy sunglasses, CCTV camera, and Power bank.

Laboratory equipment: – Microscope camera, Digital camera, Pathological equipment, Heat chamber, and cold chamber.

The time required for other countries to recover from the COVID-19 disaster.

Suicidal death of German finance minister Thomas Schaefer indicates the seriousness of the corona (COVID-19) disaster.

After positive confirmation of the corona test, British Prime Minister Boris Johnson quarantine himself. 

From world leaders to common man no one is safe from corona (CIVID-19). Under such circumstances maintaining economy with very less resources is very difficult.  

United States, Canada, France, Germany, Italy, Japan, the United Kingdom, and the European Union all the most potent G7 countries in the world are facing severe corona crises. 

Italy’s economy is nearly finished because from the last three months the whole country is under lockdown. The same is with the United States, Canada, France, and Germany, but japan is somehow balancing its economy by keeping their business running.  

Italy and the United States of America are on high alert. Apart from this country, Spain, Iran and Turkey are on the next hotspot for the corona outbreak. 

The USA is the only potential importer for all the countries in common. Iran is the top oil exporter; Spain is vehicles and machinery, including computer exporter.

Every country is suffering from the disaster, but corona parent country China is working for its profits. Struggling countries seeking help from China, but China is disappointing them with frequent reckless activity.

Future of Indian Market

Effect of COVID-19 Outbreak on the China – India Trade Relationship will observe a severe impact on business growth.

China believes when all lockdowns will be open, and the world will need essentials, they will provide it. But the world is countries are planning to reduce maximum imports from China.

The Indian government has already initiated the “Make in India” policy to attract foreign investors. India will be a new manufacturing hub for worldwide companies.  

The Indian government is also promoting in-house production plants to reduce import dependency and increase exports to generate revenue. In-house manufacturing sectors certainly play an essential role in setting up GDP.  

In-house manufacturing sectors also support to develop other supporting industries like, logistics, IT sector, and infrastructure, 

Indian manufactures can quickly grab a substantial domestic market and keep improvising there services to serve for a long time. Of course, that certainly depends upon public acceptance.  

Foreign and private investments had surely risen from the last decade. Vision to make India manufacturing hub on the global platform, it seems to be coming true.   

The unwise behaviour of China is forcing world leaders to move towards the Indian market. India already proved its responsibility and sincerity towards the world by helping other countries in the corona disaster.  

Final Word

No matter what will happen, the world and humankind will rise again. Indian foreign policy has always benefited everyone. India has shown a positive approach towards international business and will grow its economy.

COVID-19 will leave adverse, unforgettable marks on the world’s face, but, we can come out of this tragedy soon with the “Help and Grow” mind state. 

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