Taking undue advantage of World Trade Agreement (WTA) the China is indulging in dumping its products in other countries like India and America and creating problem for these countries and for itself also.
The electronic goods the products of Japan and South Korea are of very high quality and precision. The China has dumped such electronic goods and lower prices perhaps on getting subsidies by the Home Government.
In India cheap quality torch cells, mobile phones, toys etc are dumped in India and in cities number of ‘China Bazaar’ have sprang up.
In America when people of other countries go there they are amazed that the America shops selling goods made in China. That is why the US President Mr.Trump twice enhanced import duty on Chinese goods. Now China has requested America to hold talks as it was prepared to create conditions to for balancing the trade with equal import and export to remove trade deficit of America.
The same situation is prevalent between India and China. Under WTA due to dumping of goods in India the import from China in India much more than the export from the India to China. It has created problem of trade deficit for India and China has been told that India cannot allow it go on.
The India has given clear indication that it may also take America type imposing import duty enhancement on import from China. The America action has started trade war in the Global Market placing China in the tight corner.
China is highly worried that any such action of enhancing import duty by India will aggravate its economy further more. The Chinese Commerce and Trade Minister Zhong Shan is in India and promised that China would address the high trade unbalance between the two countries.
India had 51 billion dollar trade deficit with China in 2016-17. In the year 2017-18 India’s export to China were of 10.3 billion against imports of 63.2 billion leaving a trade of 53 billion dollars.
India seeks greater market access for its goods and services in China. Till now India’s biggest export to China is that of cotton. Now China has agreed to enhance its imports from India besides cotton in Soyabean, Sugar, Rice and Mustard. India is importing bulk of basic drugs from China and now suggested that India want to export 250 medicines and pharmaceutical goods to China.
Indian Commerce Minister Mr.Suresh Prabhu has suggested to Chinese Counterpart Mr.Zhong Shan to work out the ways to boost two-side trade and action plan for almost equal imports and exports between the two nations.