China, flowing in the blood of India.
Just as the boycott movement was in full swing, the major countries that may have the highest general trade barriers, India's introduction of such policies can be said to be only a matter of time. The background of the ruling of the Indian Party and the Sino-Indian border conflict can only be said to be the reason for accelerating this situation.
Investment from China is flowing to Indian technology companies. Companies such as Alibaba and Tencent have strategically injected billions of dollars into Indian start-ups such as Zomato, Paytm, Big Basket, and Ola, although India is very vigilant about this part of the investment and has made further progress on foreign direct investment (FDI) limits.
At present, China is India's second-largest trading partner, second only to the United States. In addition to the technology industry mentioned above, China's imports in India's chemical, automotive parts, consumer electronics, and pharmaceutical industries all occupy an important position.
Especially in the pharmaceutical industry. According to Bloomberg statistics, nearly two-thirds of India’s APIs are imported from China, which forms the basis of the country’s vast pharmaceutical industry.
Even in the tourism industry, figures provided by the Indian Ministry of Tourism show that the number of Indian tourists visiting China every year is far greater than the number of Chinese tourists visiting India.
In addition, the global industrial chain is a whole, and China is an important part of it. If India wants to make a difference in the global industrial chain, it will inevitably use Chinese products. Affected by the new coronary pneumonia epidemic, Chinese companies producing raw materials were suspended for the first time this year. Some Indian pharmaceutical companies were also forced to stop production due to insufficient stocks of raw materials.
Moreover, regarding the question of whether the government's "injunction" will take effect permanently, the report analyzes that last year, the Indian Madras High Court issued an injunction against TikTok and then canceled it. But the Indian government’s action is broader in scope and is currently in a specific strategic period. The ban may be a warning to China and China’s large companies in India.
If China is already flowing in the blood of India, the best way to resolve doubts is never to let go of all blood.
-Sharath V