Globally, almost all the countries of the world, whether it is the United States or the European Union, are in a deficit situation in bilateral shared trade with China. India itself is also in a state of deficit of about US $ 60 billion in mutual bilateral trade with China.
Now that China has become the workshop of the world from where China manufactured goods are being supplied to all the houses of the world and today the situation is that even if we see 10 items in our home or workplace, there is a strong possibility that among them Five items are manufactured in China.
It is not a coincidence that China has become a center of global manufacturing, but rather it has created a world-class infrastructure that transformed its workforce into skilled human resources, as well as characteristics such as limited civil rights workers in the communist political system. Global industries have been attracted to establish their own industries in China.
China’s political system is not only complementary to the economic model, but also driven by economic needs, which has not only led to unprecedented economic growth in four decades, but has also established China as a global manufacturing hub.
That is why until tomorrow, countries like America, which are forcing developing countries to free trade, are resorting to protectionism so that they can reduce their trade deficit with China. The United States, established as an economic and military power for the last three decades, made organizations like IMF and WTO a means to reach the markets of developing countries. Today, China has presented a challenge to the same US, which is not only reducing its role in global institutions but also withdrawing from its global obligations.
China, which is governed by economic interests, once again placed its economic interests above human life and so that it does not harm the economic interests, it hid the information related to Novel Coronavirus from the rest of the world, which today 4 billion people of the world There is imprisonment in homes and the global economy is on the verge of collapse.
It has now become clear that China has exercised opacity in the context of Novel Coronavirus and Western countries have got an opportunity with moral reason to reduce their trade deficit with China by adopting protectionism.
A few days ago, Japan announced a US $ 992 billion economic package to deal with the economic crisis arising out of Kovid-19, which is 20% of its GDP. In the economic package, funds have also been allocated to take out Japanese industries from China. US $ 2.2 billion has been allocated to transfer high added value industries from China to Japan and other industries to other countries and according to the Japan administration, 37% of the industries have agreed to this.
The United States has waged a trade war with China for the past 1 year. Also, the country most affected by the Kovid-19 epidemic is also the United States, for which it is continuously blaming China and encouraging its industries to come back from China.
The Conservative government was formed in Italy in the year 2018, after which the demand for separation from the European Union in Italy has increased so that Italy can adopt protectionist economic policies. On the other hand, the Italian media is blaming China for the loss of life and property due to coronavirus and is seeking compensation from China.
The negativity towards China is not only in Japan, America, Italy but has spread all over the world. Although many countries still depend on China for the supply of medical equipment, when an uninterrupted supply is necessary to deal with the corona epidemic, they are refraining from making immediate remarks to China. They are also indicating that after tackling this challenge, they will take concrete steps to reduce their dependence on China.
China, traditionally known for its aggressive economic and foreign policy, realizing the vulnerability of the occasion, China is presenting itself as a victim by not reacting against the US, Japan and other countries, so that it is negative towards itself. To prevent it from growing. At the same time, by increasing influence in global institutions (WTO, WHO), China is also making every effort to secure its economic interests through them.
Certainly there is a strong possibility of protectionism trend intensifying in the global economic scenario after dealing with the Corona crisis, but price competitiveness with quality is an important dimension in the capitalist system. In such a situation, the transfer of industries to developed countries with higher labor costs would increase the cost, which would not suit the interests of the industries. In such a situation, it will be a compulsion for him to find an alternative to China and in such a way India can be a suitable option.
For the last decade, India has made unprecedented development in the field of skill development and infrastructure construction, along with high demographic dividend, cheaper labor and improvement in labor laws, etc. There are also strong possibilities for industrial development in India. In this case it is an exaggeration to say.
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