India’s growing reliance on China poses challenge for U.S. trade strategy | The United States is looking to Indian manufacturing as a way to reduce commercial ties with Chinese factories and avoid supply disruptions
India’s growing reliance on China poses challenge for U.S. trade strategy | The United States is looking to Indian manufacturing as a way to reduce commercial ties with Chinese factories and avoid supply disruptions
>NEW DELHI — American businesses looking to reduce their reliance on China have increasingly been eyeing India in the past few years as a new manufacturing hub — and as a hedge against potential disruptions in Chinese supply chains caused by rising geopolitical tensions or another pandemic.
>But as India has amped up its production of goods like smartphones, solar panels and medicine, the Indian economy itself has become even more dependent on Chinese imports, in particular for the components that go into these products, according to trade figures and economic analysts.
>This dynamic serves as a reality check for U.S. policymakers, who have been urgently promoting efforts to diversify supply chains away from Chinese factories and “de-risk” the commercial relationship with China.
>“Unless China stops being the third party from where components come in and we just assemble, that de-risking is not going to happen for any country coming in and producing in India,” said Sriparna Pathak, an assistant professor at Jindal University focusing on India-China relations.
>India’s imports from China have been growing twice as fast as those overall and now make up nearly a third of Indian imports in industries ranging from electronics and renewable energy to pharmaceuticals, according to the Global Trade Research Initiative (GTRI), an Indian think tank. These imports include finished products as well as intermediate goods for manufacturing.
>Nearly two-thirds of Indian imports of electronic components, such as circuit boards and batteries, now come from China, the Confederation of Indian Industry says. And the volume of such Chinese imports has tripled during the past five years, GTRI reports.
good example of how “just buy from India/Vietnam lol” does not meaningfully decouple the US economy from China’s. the global economy is deeply interconnected
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>NEW DELHI — American businesses looking to reduce their reliance on China have increasingly been eyeing India in the past few years as a new manufacturing hub — and as a hedge against potential disruptions in Chinese supply chains caused by rising geopolitical tensions or another pandemic.
>But as India has amped up its production of goods like smartphones, solar panels and medicine, the Indian economy itself has become even more dependent on Chinese imports, in particular for the components that go into these products, according to trade figures and economic analysts.
>This dynamic serves as a reality check for U.S. policymakers, who have been urgently promoting efforts to diversify supply chains away from Chinese factories and “de-risk” the commercial relationship with China.
>“Unless China stops being the third party from where components come in and we just assemble, that de-risking is not going to happen for any country coming in and producing in India,” said Sriparna Pathak, an assistant professor at Jindal University focusing on India-China relations.
>India’s imports from China have been growing twice as fast as those overall and now make up nearly a third of Indian imports in industries ranging from electronics and renewable energy to pharmaceuticals, according to the Global Trade Research Initiative (GTRI), an Indian think tank. These imports include finished products as well as intermediate goods for manufacturing.
>Nearly two-thirds of Indian imports of electronic components, such as circuit boards and batteries, now come from China, the Confederation of Indian Industry says. And the volume of such Chinese imports has tripled during the past five years, GTRI reports.
good example of how “just buy from India/Vietnam lol” does not meaningfully decouple the US economy from China’s. the global economy is deeply interconnected
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