Context :China’s Role in Global Economic Turmoil
- Piyush Goyal blames China’s unfair trade practices as a root cause of current global economic turbulence.
- He traced the issue back to China’s admission into the WTO, around early 2000s.
- Global community expected transparency and fairness, but instead saw:
- Predatory pricing,
- Dumping of goods,
- Unfair labour practices, and
- Supply chain manipulation.
Relevance : GS 2(International Relations )
Strategic Caution by India
- India is being strategically cautious about allowing investments from China, especially in sensitive sectors.
- Example: Denial of entry to Chinese EV giant BYD, citing security and strategic concerns.
- Emphasis on protecting national interests while encouraging rule-based trade.
India’s Response and Position
- India aims to convert the challenge into opportunity by adhering to fair global trade rules.
- Advocates for rule-based economic growth unlike China’s alleged unfair strategies.
- Highlighted India’s low applied tariffs, especially toward U.S. (around 7–8%), implying openness to trade reciprocity.
Concerns Over U.S.-China Trade War Spillover
- Possibility of China increasing dumping in markets like India after U.S. tariffs.
- Goyal urged Indian industry to be vigilant and responsive to such developments.
Key Takeaways
- India is re-evaluating foreign investment policies with a national security lens.
- Global trade landscape is shifting amid U.S.-China tensions, and India seeks to assert itself as a fair, rule-abiding player.
- Growing consensus on reforming global trade rules to prevent manipulation.
