China receives a major jolt as India refuses to be a Chinese dumpyard

Modi, India, Jinping, China, Dumpyard

Chinese products have a certain reputation in India. I don’t need to emphasise much. Every time you ask a local shopkeeper about the quality of a product, you’ll hear- “bhaisahab Chinese hai dekho kab tak chalta hai (Bhaisahab, this is a Chinese product, let’s see for how long it lasts).”

China has been flooding Indian markets with products like toys, festival commodities, and clothes, for several years now. It has been using India as a market to sell substandard goods. But India is now saying no and is refusing to be a Chinese dumpyard.

India imposes anti-dumping duties on Chinese goods

India has reportedly imposed anti-dumping duties on five Chinese products, including certain aluminium goods and some chemicals, for five years. The step has been taken to guard local manufacturers from cheap imports from China.

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A separate notification by of the Central Board of Indirect Taxes and Customs (CBIC) stated that the fresh duties have been imposed on certain flat rolled products of aluminium, sodium hydrosulphite, silicone sealant hydrofluorocarbon (HFC) component R-32 and hydrofluorocarbon blends. The products are used in several industries such as thermal power, solar power, refrigeration, and dye industry.

The CBIC stated, “The anti-dumping duty imposed under this notification (on Silicone Sealant) shall be levied for a period of five years (unless revoked, superseded or amended earlier) from the date of publication of this notification in the Official Gazette and shall be payable in Indian currency.”

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THE CBIC also imposed duty on axle for trailers in CKD/SKD (complete and semi knocked down) to protect domestic makers from cheap Chinese imports.

Duties imposed due to abnormally low prices

The anti-dumping duties have been imposed on recommendations of the Commerce Ministry’s probe-arm — Directorate General of Trade Remedies (DGTR).

In separate probes, the DGTR concluded that these products were exported at a price below the normal value in Indian markets, which has caused dumping in the Indian market.

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Chinese trade practices have, in general, hurt the interests of India’s local producers and manufacturers. China produces ultra-cheap goods of dubious quality. On the other hand, Indian manufacturers don’t compromise on quality or fitness, but do not produce ultra-cheap goods. China has used such conditions to capture Indian markets and marginalise local producers. This creates a wide trade deficit for India in its bilateral relations with China.

However, the Indian authorities are now cracking down on China’s unfair trade practices. Therefore, New Delhi is imposing anti-dumping duties on Chinese products in order to create a level-playing field for its own industries. This complements India’s campaign against China’s unfair trade practices, whereby the country has filed the maximum number of anti-dumping cases against dumped imports from the communist nation.

Chinese trade facing pressure from free world

The free world at large has realised that if the oversized bully called China has to be defeated, then it must hurt the Chinese exports economy.

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Recently, the US and the EU ended their steel and aluminium fight. The Biden administration will allow duty-free access to steel and aluminium exports to the United States. And together, the US and the EU will fight China’s ‘dirty’ steel.

The European Union too has imposed strict tariffs on specified steel and aluminium products coming from China. And now, India has further piled pressure on the Chinese exports economy. The world is abandoning Chinese products and India is leading the democratic world’s campaign from the front.

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