India will increase import barriers to prevent imports of Chinese products

In response to trade with China, the Indian government has made new moves. According to Reuters news recently, two Indian government sources said that under the impetus of India’s “self-reliance plan”, the Indian government is considering measures to prevent trading partners of mainly Southeast Asian countries from exporting Chinese goods without any added value. India.

India strictly guards against the inflow of Chinese goods

The two officials said that in order to strictly prevent the influx of Chinese goods, India is planning to raise the quality inspection standards of imported goods, impose import restrictions, enforce strict information disclosure regulations, and update goods from many Asian countries at ports of entry. Frequent inspections. These measures will mainly target the import of basic metals, electronic components for laptops and mobile phones, furniture, leather goods, toys, rubber, textiles, air conditioners and televisions.

One of the officials said: "The effect of raising tariffs is limited. Now we want to improve the quality inspection standards and ensure that the goods on the free trade agreement routes are indeed from the origin. So the customs will be more vigilant than before." The official added that the government It will be discussed to increase the value-added requirements of products imported from these countries from the current level of 20%-40%, and may review the free trade agreement.

"Many Asian partner countries have become places where Chinese goods are re-exported. We will design different types of actions for product items one by one, and most of them will take non-tariff measures." The official said.

In response, the Thai and Malaysian authorities responded that they have not received any official communication from India on issues such as raising non-tariff barriers or diverting goods.

In addition, the Indian government is considering reviewing the ASEAN-India Free Trade Agreement. According to sources, the Indian government prefers more mutually beneficial free trade agreements, and India currently has a trade deficit with most ASEAN countries.

The Indian media revealed last month that in order to prohibit the inflow of Chinese products from third countries, the Indian Ministry of Commerce and Industry is pushing for a rapid revision of the "Customs Law" and requiring the Ministry of Finance to issue strict regulations on rules of origin and authorize customs staff. Check the abuse of free trade agreements. India previously required 100% inspection of goods from China.

To what extent can India get rid of Chinese products?

印度近来在贸易、投资、市场准入等方面推行一系列保护主义政策，企图在经济上“去中国化”。据路透社11日报道，印度中小企业部长尼廷·加德卡里日前表示，印度政府计划促进本国某些特定产品，特别是中国在全球市场占据很大份额产品的生产。

Reuters said that in the past few months, the Indian government has announced production-related incentives to encourage the manufacture of electronic products, medical equipment and pharmaceutical products, while restricting the import of similar products from China. According to a report by the “Times of India” on the 11th, the Indian government is considering imposing tariffs on nearly 20 products including laptops, cameras, textiles and aluminum products, and at the same time imposing import permits on some steel products. This move is regarded as India The latest restrictions on Chinese imports.

To what extent can India get rid of Chinese products? "The Logical Indian" news network quoted a report recently released by the Research and Information System Research Center for Developing Countries in India on the 10th, saying that about 4,000 imported products from China, including mobile phones, telecommunications equipment, cameras, solar panels, 327 products including air conditioners and penicillin can be found in alternative source countries or can be produced in India. The report stated that the value of the above-mentioned "sensitive imported products" accounted for 3/4 of the total imports from China.

According to data from the Ministry of Commerce of India, the bilateral trade volume between China and India in the 2018-2019 fiscal year was US$88 billion. China is India’s second largest trading partner after the United States. In terms of categories, India’s main imports from China include bulk medicines, raw materials, electronic products, electrical equipment, organic chemicals, plastics and fertilizers. By importing raw and auxiliary materials and intermediate goods, India's manufactured products are quite competitive in the global market.

According to local statistics in India, from 2018 to 2019, 92% of Indian computers, 82% of color TVs, 80% of optical fibers, and 85% of motorcycle parts are imported from China.

According to data released by the General Administration of Customs of the People’s Republic of China, in the first half of this year, India’s imports of goods from China totaled 187.084 billion yuan, of which, calculated according to commodity categories, electrical machinery, electrical appliances, audio-visual equipment and their spare parts, nuclear reactors, boilers, mechanical appliances and Parts, organic chemicals, plastics and their products, optical, photographic, medical and other equipment and spare parts, steel products, vehicles and their spare parts (except railway vehicles) are the goods with a relatively high total import value. Since June this year, India’s imports from China have risen for two consecutive months.