Amid calls from some quarters for boycott of Chinese goods in ongoing Diwali season, China today said any such move will negatively impact the India-bound investments from its enterprises and also the bilateral cooperation between the two countries.
China also asserted that any such boycott would not have much impact on its exports, but “without proper substitutes, the biggest losers of the boycott of Chinese goods will be Indian traders and consumers”.
Amid rising tension in Indo-Pak ties, there have been calls from some fringe entities, including through social media platforms, about boycott of Chinese goods to protest against China’s support to Pakistan.
Top traders body CAIT (Confederation of All India Traders) recently said the sale of Chinese products may decline by 30 per cent this Diwali.
India is a big market for Chinese products and over the years import of toys, furniture, building hardware, crackers, lighting and electric fittings, furnishing fabric, office stationary, electronic appliances, consumer electronics, kitchen equipment & appliances, gift items, watches etc. from China has increased to a great extent.
Chinese products are generally low-priced which is the root cause of infiltration of Chinese goods in the Indian market, CAIT had said.
In its statement, Chinese embassy referred to reports that local sellers in Sadar Bazaar, the largest wholesale market of household items in India, have complained about their Chinese goods sale dropping by at least 20 per cent.
“The boycott effect will not limit to Diwali related products, but extended to other Chinese products that are not related to the festival. In the long-run, boycott will not only hurt Chinese goods sale, but also cause negative effects to consumers in India,” it said.
“China has become India’s largest trading partner, source of imports and fourth largest export market. Moreover, India is the China’s largest trading partner in South Asia and ninth largest export market in the world,” it said.
According to the statement, the distinct features of China-India trade are mutual benefits and growing inter- dependence, which contributes to the full use of factors of production and maximization of the benefits to all the people.
“In 2015, China has imported 2 billion dollars’ worth of cotton and more than 100 million dollars’ worth of black tea from India, bring benefits to 1.2 million cotton growers and 50000 tea farmers and sellers in India.
“China also exported a lot of electronic and household products which are attractive both in price and quality. Chinese products not only lowered India’s inflation rate, but also fulfilled Indian ordinary people, especially the low- income people’s daily needs, greatly improved their life quality.”