Should india mull sanctions on china

Should india mull sanctions on china

No nation can achieve military hegemony (आधिपत्य) without success on the economic front. Same is the case with China, the world’s largest merchandise exporter, a nation that within a few decades and on the back of flooding world markets with low-priced goods has shifted the balance of power so authoritatively that any Chinese belligerence (युद्धदशा) today can only invite wide condemnation and outcry (दुहाई) but not direct warning or a full-blown assault.
In part, India has also fueled this domination of China by allowing the neighbour to export goods in such a manner that our local industry suffered unprecedented (अभूतपूर्व) , irreparable damages.
A lot has been talked about why our trade deficit with China is a cause of worry, a ‘matter of concern’ as termed by the Commerce Minister. While bilateral trade stood at $71 billion in FY 2016-17, the deficit (owing to fewer exports from India) was at a staggering $51 billion.
The question is how these deficit figures became a persistent trend and discussions in Parliament or assurances from government in the form of encouraging exports and halting the dumping of Chinese goods did not fetch desired results. It is certain that by the end of the present FY the trade deficit will remain where it is; woes of local industry will remain unresolved and India, yet again, will only supplement the so-called Chinese hegemony.
The initiatives by the Indian government aimed at narrowing the gap between exports and imports – the Merchandise Exports from India Scheme and its services sector counterpart, SEIS, the Niryat Bandhu Scheme exclusively for new export-import entrepreneurs, single window clearances for facilitation of trade – have all fallen short of expectations and needs of local producers who have been elbowed out (to force someone or something out of a position) by low-cost imports from China.
What then needs to be done? In his Mann Ki Baat address to the nation, PM Narendra Modi has stressed upon the need to purchase goods produced locally. Had the issue not been so grave, it would not have been explicitly cited in a public address by the Prime Minister.
The economy, especially industries like consumer electronics, toys, tyres, leather, solar energy equipment, machine tools, textiles, mobile phones and even cottage industry goods, has been severely damaged, all thanks to the free flow of Chinese goods into India.
Let us move beyond patriotic fervor (जोश/तीव्रता) and examine the possibilities of India preventing any China-made articles of trade from entering the country. Practically this seems unmanageable, for India is not only a signatory to various multilateral and inter-governmental trade pacts but also because India cannot afford to symbolize ultra-protectionism in this era of free trade.
When Chinese goods are available to bona fide buyers at cheap rates, any shallow appeal by any authority or politician asking people to refrain from buying Made in China products does not hold promise. But there’s another angle to this Sino-India story – the recurring border incursions (घुसपैठ) by Chinese troops along the Line of Actual Control and McMahon Line.
These border standoffs, which usually occur at key junctures such as a state visit of the Indian PM to the United States or an official visit of Chinese President to India, offer to India a chance to use hitherto (until now or until the point in time under discussion) unused ammunition – imposing sanctions on a belligerent, unaccommodating party.
A brief look at the past shows that this option has been exercised by China. It used this soft-power deterrent on Mongolia in retaliation for the latter’s invitation to the Dalai Lama in 2016. While China unilaterally went ahead with punishing the already ailing Mongolian economy, there have been numerous other instances such as the recent US sanctions on Russia.
The US-Russia on-off rivalry is wellknown but the India-China tiff (a petty quarrel) has not achieved the same status because of India’s ever-easy stance on its ever hostile neighbor.
But it is time the current dispensation, well-known for its reformist stance, its will as well as capability in taking bold decisions like demonetisation, mulls (think about (something) deeply and at length) the idea of imposing economic sanctions on China, the country that is yielding high premiums on exports to India and is yet not supportive of its neighbor on key issues like counter-terrorism, her bid to join the Nuclear Suppliers’ Group and become a permanent member of the United Nations Security Council.
By not responding authoritatively to Chinese belligerence, apart from the recent challenge we have thrown in the Doklam Plateau, India has only indirectly supported the downfall of its local manufacturing sector that could not sustain the tsunami of deliberately low-priced Chinese goods flowing unchecked. It can easily be noted that under the garb of free bilateral trade China has undermined India’s economic, social, even political, growth.
The impairment is not caused to industry alone, the unemployed youth and rising non-performing assets (NPAs) of banks also are a direct outcome of ever-rising consumption of Chinese goods by Indians.
From LEDs to plastic toys, solar panels to smartphones, China planned and successfully implemented its agenda of usurping (take the place of) the Indian market. A superpower has recently raised the slogan of ‘buy and hire’ local in the backdrop of the dent that Chinese goods have made on its economy.
On the other hand, India has responded with a much softer pitch of ‘Make in India’, which after almost three years of its unveiling hasn’t brought any real benefits to local producers, employment seekers or other key participants of the economy including banks.
China has steered clear of repercussions even when they defied (अवहेलना करना) our territorial integrity, not just once in a full-blown war in 1962 but also by intermittently entering the Indian side of the border unlawfully with the intent to change the already settled boundaries. China has done the same in the South China Sea by way of building military installations; but matters are vastly different there because no country in that region can stand up to the might of China.
This, however, does not hold true in the India-China case owing to our possession of nuclear arms, our widely acknowledged stature as a strategic power in the region, our celebrated democratic credentials, our GDP growth rate that has outpaced all others, and above all, our diplomatic weight under Prime Minister Modi.
Enough reasons call for India’s sanctions on China – its support for ‘natural ally’ Pakistan, a safe haven for terrorists, its building the China Pakistan Economic Corridor that passes through areas India claims exclusive rights over (in itself a single compelling reason to cut off any economic and diplomatic ties with China), its opposing India’s bid to become a member of key inter-governmental agencies, and its employing state-backed media outlets to defame and intimidate Indian polity and armed forces.
It is high time now that the country resorts to exceptional yet necessary actions with a multi-pronged strategy that not only makes the world understand the will and ability of India in safeguarding its territorial integrity but also reverses the trend of downfall of local manufacturing industry.
Given that countries across Asia, barring Pakistan and North Korea, are reeling under Chinese belligerence and hostile approach, placing economic sanctions will be more welcomed than denounced (condemned) . It may alter the balance of power.