How's India benefitting from US China Trade War?
Created on 22 Nov 2019
Wraps up in 3 Min
Read by 4.6k people
Updated on 10 Sep 2022
In this clash of the titans, Third-World countries and especially India are looking to get the advantage. Both super-powers have lost some in this trade war according to the UN. But what’s next?
Read and find out below..
WWE (World Wrestling Entertainment) is an American concept and quite a successful one. It’s not about the ferocious fighters or the deadly brawls, but the hype that is created and an entertaining story created around each fight. Usually, a strange thing happens in their ‘Championship Matches’. When the match is about to end, a winner is about to be decided, and both competitors are dead-tired, there comes a third wrestler who beats both of them and runs away with the championship belt.
We’re narrating this because a similar situation is taking place in the ongoing US-China Trade War. While both the super-powers are involved in an egoistic Import Duty tussle, countries including Vietnam, Malaysia and India are benefiting out of it. Moreover, India is all set to reap some great commercial advantages about which you’ll read further.
What is the US-China Trade War about?
Basically, it’s a clash of huge egos and a battle to prove one’s supremacy over others. By the way, this all started in a very interesting manner. US and China were about to enter into a trade deal which was making all others a bit fearful. Because, it was clear that if 2 most powerful countries collaborate commercially, it would have an effect on every other country’s trade that’s related to them.
But, suddenly there came a piece of news to these countries’ respite. In a very unpredictable way (which is quite usual for current American President) Mr. Trump announced a hike in tariff (Import Duty) on Chinese Goods. Now, of course, China wouldn’t quietly tolerate this. So, it raised barriers for American companies and their products, and also eased it for other nations.
Someone’s Pain is Else’s Gain!
The UN has clearly termed it a ‘lose-lose’ situation for both the US and China. According to its news report, the hiked tariffs have been passed on to US consumers while China has also suffered a loss of $35 Billion. And that’s just about the first half of the year! But who blinks first, God knows.
On the other hand, some countries are enjoying the war as they are gaining out of it. Taiwan, Mexico, the European Union and Vietnam are the top gainers in the list of those in advantage. Korea, Canada and India follow. But that’s just about monetary gains.
How does Trade War benefit India?
The Indian government has reportedly prepared a draft and is all set to reach out to Tesla Inc. and 323 other companies asking them to set up factories in India. These companies had avoided India till now due to complex land acquisition and labor laws. But, our government is now ready with an attractive offer for them.
Our Government would now provide them with land, water, electricity and road access to set up their factories in India. The government is also planning to rationalize anti-dumping duties, thereby leaving no stone unturned to attract them. Now, how would the companies react to the offer, only time would tell but, we’re hopeful of a positive spike for the economy.
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