Once again, there is a demand for boycott of Chinese goods across the country. After the worldwide spread of coronavirus pandemic from China, there is considerable resentment in the country over its border disputes with India. Along with the objective of self-dependent India, Boycott China Campaign is the trend nowadays.
The demand for boycott of Chinese goods across the country is growing and becoming loud day by day. However, it is not easy. After looking at the following figures, you will get to know how difficult it is to avoid the purchase of Chinese products in India and put China out of the Indian market.
Can Indian Boycott China?
Smartphone: China occupies 72% of the market
The smartphone market in the country is worth Rs 2 lakh crore, with China accounting for 72%. It is very difficult to get rid of the Chinese smartphone because this dominance is in every price segment and in R&D of new phones, it is ahead of Indian manufacturers.
Telecommunication Equipment: China occupies 25% of the market
The telecom equipment market is worth Rs 12,000 crore, with China accounting for 25%. We can avoid purchasing Chinese products in telecom industries, but it will be an expensive deal.
Chinese telecom products are less expensive than other global manufacturers. According to the telecom companies, if they buy American and European telecom equipment, the load on the pocket would increase by 10-15% in a particular segment.
Television: China occupies 45% of the market
The television market in India is worth Rs 25,000 crore. Chinese companies account for 42-45% of the smart television market and 7-9% of non-smart television markets.
In this market segment too, we can get rid of Chinese goods, but it will be very expensive because non-Chinese televisions are 20–45% expensive.
Home Appliances: China occupies 12% of the market
The market size of home appliances in the country is 50 thousand crore rupees, in which the share of Chinese companies is 10-12%.
In this segment, we can easily get rid of Chinese goods, but if any big Chinese company comes down with cheap products, then it will be very difficult to survive against it.
Automobile Parts: China captures 26% market
The automobile components market in the country is worth Rs 4.27 lakh crore, of which, Chinese companies account for 26%.
In this segment too, it will be difficult to get rid of Chinese goods, because it will not be easy to find domestic or global alternatives.
Internet Applications: Indian users crazy about Chinese apps
There are 450 million smartphone users in the country, with 66% of people using at least one Chinese app. Some of these apps are Helo, TikTok, UC Brower and ShareIt.
It is easy to get rid of China in this segment, but Indian users will have to abandon the temptation from these apps. India has so far failed to find an attractive alternative to most of the Chinese apps.
Solar Power: China occupies 90% of the market
The market size of solar energy in the country is 37,916 MW, of which, Chinese companies account for 90%.
It is almost impossible to get rid of Chinese goods in this segment, as domestic manufacturing companies are weak and other options are expensive. This the crucial sector, in which, it is nearly impossible to boycott china at this stage.
Steel: China occupies 20% of the market
The market size of steel in the country is 108.5 Mega Ton, of which, Chinese goods account for 18-20%.
In this segment, we can be an independent player, but it will require better infrastructure and effective planning. For some products, it would be difficult to find products at par on the Chinese price.
Pharma / API: China occupies 60% of the market
Pharma / API has a market size of Rs 15,000 crore in India, with Chinese companies accounting for 60%.
In this segment too, it will be very difficult to get rid of Chinese goods. Other sources are expensive and there will be many difficulties in the way of establishing large chemical factories.
What Countries are doing to Boycott China?
While the world is going through its biggest economic crisis, Chinese companies are engaged in shopping. China buying companies to take advantage of the battered economy of Corona
This purchase of shares in foreign companies has made many countries of the world cautious. In view of this, many countries have tightened their FDI rules.
Many countries, including India, have started trying to stop the growing investment of Chinese public companies.
The next name in this list is ‘India’. On 17 April, the Government of India changed the FDI rules to curb the opportunistic acquisition/purchase of Indian companies during pandemic’.
Without naming China or any country, India changed its FDI rule, saying ‘A country whose land borders with India cannot invest in India without government approval. If the beneficiary of an investment resides in such a country or is a citizen of that country, the same rule will apply.
In fact, the first such news came that Peoples Bank of China (PBoC) has increased its stake in HDFC, India’s largest non-banking home loan company, from 0.8 percent to 1.01 percent.
Apart from this, the government has also banned indirect acquisitions by Chinese companies, making another important change. That is, if there is any change in the ownership of any foreign investment, the approval of the government will have to be taken for this. Now any direct or indirect investment coming from China will have to be approved by the government.
Earlier only companies from Bangladesh and Pakistan had to get the approval of the Government of India for investment.
The Foreign Investment Committee (CFIUS) is playing an active role in the US. It is investigating any possible purchases by foreign companies. It is investigated on the basis of national security. A trade war between USA and China is expected to take place in the year ahead.
The European Union
First, the European Union changed its FDI rules. Several European Union member states introduced regulations restricting foreign investment to prevent China’s ‘bargain hunting’. Many countries including Germany, France, Italy, Spain adopted it.
On 25 March, the European Union warned its member countries that the risk of acquisition by FDI, especially in healthcare or related industries, has increased. It urged member countries to make arrangements for the screening of FDI.
After this, the government of Germany amended its FDI rules. On 17 March, the Spanish government changed its Act of 2003 and required prior permission of the government for FDI or any FDI proposal.
Italy introduced a ‘Golden Power Law’ on April 8, 2020, according to which, there are many restrictions on foreign investment in sensitive areas. The Italian government feared that its ravaged companies could buy foreign companies at cheaper prices. Significantly, Italy is among the countries most affected by Corona.
Similarly, in Britain, acquisition in the military, computer hardware, quantum technology etc. can no longer take place without government approval.
On 30 March, Australia also temporarily tightened the foreign takeover rules. The country was afraid that in view of the Corona crisis, its important companies could buy foreign companies cheaply. The Government warned the companies and intimated that countries like China can buy troubled companies in many sectors like aviation, health, etc.
On April 18, 2020, Canada also tightened its foreign investment rules. FDI in a company linked to Canada’s public health or other important supply chains will now have to undergo government scrutiny.
China, silently over the decades has penetrated the global market deeply. In fact, people like using Chinese products over others as they are less expensive and good to use where there is no bar of quality and life of the product.
Many nations are dependent on Chinese items. Even, China also claims the availability of Chinese products in every house of the planet.
Taking the Chinese goods out of the global market is not at all a game of months or a year. This may even take decades to experience the results of ‘Boycott China’ thoughts. However, from today itself, one can start neglecting and avoiding the dragon’s product in order to show patriotism.
So, are you going to be the one and really boycott Chinese products?????
Akash is a freelance content writer, technically sound in the article and blog writing mechanics adopting the SEO strategy. Along with his professional commitment as a telecom engineer, he has never given up on his hobby of writing articles in the last 14 years. He has worked with top-notch content writing organizations for years and developed writing skills in both Hindi and English languages. He loves to write about Science & Technology, Current Affairs and Finance. Akash also writes poetries and well known in the poetry world as ‘Aks’. He devotes his spare time to singing and traveling.