Thread by @Rnb129

In an earlier thread 👇(written 6 months before #Pulwama) I tried to get into this Most Favoured Nation thingy and why India should immediately strip #Pakistan of that status - economically and geopolitically

Let's try #China now.Would it make sense to revoke China's MFN status?

https://twitter.com/Rnb129/status/1046348752229826560

For starters, India seems to enjoy being the punching bag of the world- affectionately called "becoming Vishwaguru" by many in the administration.

God alone knows why India never revoked MFN for Pakistan till Pulwama while Pakistan hasn't made India MFN SINCE DAY 1 OF WTO (1996)

India provides preferential tax treatment based on a 2003 agreement, to 217 Chinese goods (at a good 13% lesser than MFN rates given to other nations). China has similarly preferential rates for 188 items. Even before #GalwanValleyFaceOff the #ChineseVirus exposed the flaw here:

After a high of US$ 95 billion in 2018, bilateral trade between India and #China did not cross the $100B many felt it would, plateauing at about $90B. (Remember, much of this is before Corona and Galwan hit trade)

Interestingly, trade deficit with China went down by 8-10% in one year, $58B to $53B last year. What's interesting here is in the category of imports that fuelled this -
organic chemicals
cotton
plastics
fish and crustaceans
electrical machinery,
Iron and steel
coffee and spices

These are the very things (barring cotton) that make China the seller of 14% of Indian imports.

If that gap is closing by $5B in 1 year, does that imply #MakeInIndia is actually happening and not merely some nice sounding English?
Exports in each of these items grew by 30%

Take PPEs. We didn't know the last of it until #CoronavirusIndia happened. Now that's worth ₹10k crores in TWO months! Out of nowhere!

No wonder @isro makes the best rockets. We know a thing or two on not flying until the tail is on fire :)

As can be seen, India CAN step up when the heat is on. Why wait for pressure before "stepping up"? And that's what the much mocked "Make In India" is about.

If only we can get around the babudom that stops everything, we could beat the Chinese who look to get things done

In a major ruling at WTO that is surprisingly unnoticed, China is officially declared a "non market economy" - a nation that interferes with market prices - so nations can apply any anti-dumping tax they want!
m.thebl.tv/uncategorized/…

This was the basis of their negotiated entry into WTO in 2001 - no market economy status for 15 years, and once that observer period expired in 2016, no confirmation of full member market economy status too, due to their protectionism. #BoycottMadeInChina

Even now, Chinese firms and industry bodies are begging India to award them market economy status. That would mean legitimizing China's dumping policies!
#BoycottChineseProduct

What the 2003 deal did is allow China to dump in India (as above, tariffs 13% points lower than MFN tariffs) products that it wouldn't be allowed to sell so cheaply elsewhere!

No point complaining that India is allowed to do the same too.
It's one-way traffic to the tune of $53B

WTO doesn't recognize them as a market economy, they've lost a legal battle with the EU, India doesn't recognise them too. So what are we waiting for? Apply duty and get on with it!

At any rate, will we allow economic considerations to overpower those of national interest?
14% of Indian imports are Chinese.
5% of Indian exports are to China.

Conversely, just 3% of Chinese imports are Indian. Won't take much to ban Indian imports like USA did after Pokhran.

Same goes with Chinese exports. Just 3% are to India.
Long story short, if India cuts trade, China is not exposed enough for it to matter to them.
India may be concerned by the 14% Chinese imports. But it's a minor, manageable irritant. #BoycottMadeInChina still good in long term

At any rate WTO provides for protectionism against dumping of the kind China does. What stops India from invoking that and levying extra duties on Chinese goods?

China anyway thinks so highly of Indian imports that they imported more from Iraq, Angola and South Africa last year!

Time to bite the bullet, call China's bluff for what it is and #BoycottMadeInChina. Make a start somewhere. Nothing wrong in batting for native industry when China does the same with nary a care for international rule of law!

அருமை உடைத்தென்று
அசாவாமை வேண்டும்
பெருமை முயற்சி தரும்.

"Yield not to the feebleness which says, "this is too difficult to be done";
Effort begets the strength of mind necessary to do it.
-Thirukkural 611
#BoycottMadeInChina

It's improving now.
India's Trade Deficit Against China Falls For 2nd Consecutive Year; Down From $63 Billion In 2017-18 To $48.7 In 2019-20
#BoycottChineseProduct very much doable if they set their minds to it.

swarajyamag.com/insta/indias-t…