India and NSG-News, Updates and Discussions.

[Chinese-Dragon]

I'm just wondering, if they start a trade war and stop importing electronic components, how will they assemble their make-in-india phones?

They can't.

Most of the manufactured goods in the world have something to do with China, whether it is made in China, assembled in China, has components from China, or is otherwise involved with the Chinese end of the global supply chain.

The major Indian smartphone makers like Micromax in fact just buy Chinese mobiles off the shelf, and re-brand them. That's all, they don't have anything to do with the hardware.

How Micromax used China to build its business - Rediff

 

[bolo]

I'm just wondering, if they start a trade war and stop importing electronic components, how will they assemble their make-in-india phones?

Sir, The Indian elite and business people will never allow that. They are making a lot of money and keeping the power status quo importing Chinese products and re-branding it and selling to Indians.

 

[Gibbs]

Ultimately a China-US deal.

A lot of people dont realize how global real politik work, Thats the whole issue here, Global power play doesn't happen according to whims of fancies nationalists in developing countries, It's a whole different ball game.. The US knew all along this wont pass, And China would oppose it.. So they played the good cop, Came out unscratched

 

[dray]

I think you are confused.

He is talking about tariffs. Do you know what happens when you raise tariffs against a certain country? They raise tariffs in return. Trade war 101.

Why do you think there is so much barking about the Indian trade deficit to China... yet the trade deficit keeps growing year after year?

But again, I'd love for you guys to finally, for once... put your money where your mouth is. Start a Trade war, we didn't build up several trillions in currency reserves just to lose a Trade war.

I didn't say stop all trade, did I? I said 'cut down' the imports that we can without any problem to us. And it will be cut down now for sure. You start a trade war and lose the rest, in any case who do you think stands to lose more in a trade war between India and China? The one which is enjoying the trade imbalance in their favour, right? That Trade deficit happened in last 10 years or so, and it can be reversed. Your government will get the hint within a month.

 

[AndrewJin]

A lot of people dont realize how global real politik work, Thats the whole issue here, Global power play doesn't happen according to whims of fancies nationalists in developing countries, It's a whole different ball game.. The US knew all along this wont pass, And China would oppose it.. So they played the good cop, Came out unscratched

Yes.
Dirty deal behind. US needed China to be the bad guy.
U can see in SCS, US gets the fame and sells more weapon, but China also builds more islands and has unprecedented presence.
It's a win-win deal.
When they were verbally fighting in Singapore, at the same period they also had a joint drill.

It's a nice show, both parties are enjoying.

 

[danger007]

They can't.

Most of the manufactured goods in the world have something to do with China, whether it is made in China, assembled in China, has components from China, or is otherwise involved with the Chinese end of the global supply chain.

The major Indian smartphone makers like Micromax in fact just buy Chinese mobiles off the shelf, and re-brand them. That's all, they don't have anything to do with the hardware.

How Micromax used China to build its business - Rediff

Yup many of these phones are rebranded chinese stuff ... But the fact Samsung remain most preferred brand in India.. I phone investing here, there are other mobile companies in SRI CITY alone ( Industrial park)... to the date these local manufacturing units are depended on chinese ... but dependency slowly narrowing... from assembling unit to they build a manufacturing unit recently.. we need to catch the R and D ..

 

[Kyusuibu Honbu]

There is something called a "Government" that can decide what kinds of imports are to be allowed, the taxes and duties, etc. Since a good friend of mine @Nilgiri has already explained it quite eloquently, I won't repeat the task, you can check these two posts below:

You need to gain more knowledge in this. Thanks..

Just to add a bit on trade part with China, I have repeatedly attempted to educate Chinese members on Indian dependence on Chinese imports, but despite my best efforts some cognitive inertias are hard to change.

I guess Chinese members should continue to live in delusion of Indian economic dependence on China rather than reality that India does not import anything critical or strategic from China that cannot be easily replaced by another nation:

Top ten Chinese exports to India

1. Electronic equipment: $16 billion
2. Machines, engines, pumps: $9.8 billion
3. Organic chemicals: $6.3 billion
4. Fertilizers: $2.7 billion
5. Iron and steel: $2.3 billion
6. Plastics: $1.7 billion
7. Iron or steel products: $1.4 billion
8. Gems, precious metals, coins: $1.3 billion
9. Ships, boats: $1.3 billion
10. Medical, technical equipment: $1.2 billion

http://www.worldsrichestcountries.com/top_china_exports.html


In regard to lower Indian exports from India, Chinese have shown protectionism when it comes a major Indian export of Pharmaceuticals, this has been done to protect its own industry at the cost of its citizens.

There must be massive demand for Indian Pharmaceuticals consider some Chinese are risking jail time to procure affordable Indian medicines.

 

[Chinese-Dragon]

Yup many of these phones are rebranded chinese stuff ... But the fact Samsung remain most preferred brand in India.. I phone investing here, there are other mobile companies in SRI CITY alone ( Industrial park)... to the date these local manufacturing units are depended on chinese ... but dependency slowly narrowing... from assembling unit to they build a manufacturing unit recently.. we need to catch the R and D ..

Guess where Samsung phones are made?

Guess where all the components inside your smartphone, tablet, PC/laptop came from?

Open them up and look inside.

 

[Mufflerman]

Guess where Samsung phones are made?

Guess where all the components inside your smartphone came from?

10 years back it was China that was assembling with Taiwanese and Japanese chips. Don't be so cocky. India's first mega chip fab unit is opening in 2 years. You should start worrying dude.

 

[Echo_419]

India's NSG seat and UNSC seat are still available...

IF they come to the table for an honest negotiation.

------------------------------

Let's be frank, China and India are NOT friends. We all know this.

Yet whenever India needs something (NSG/UNSC), they suddenly pretend that they are our friends, and ask for "free favours", like in the case of the NSG.

Then at the same time, they went behind China and did their best to try and guilt/isolate China into supporting their NSG bid, by making deals with every other country besides China. Hoping that foreign pressure would force China to succumb. Sorry, that never works. Only one veto is ever needed, that's how veto power works.

But they never did the thing which could actually give them what they want. Which is to come to the negotiating table and offer us something in return.

For example, India agreed to sign the CISMOA/LSA in return for America getting them the NSG seat (which they failed to deliver). India has never fought a war with America... yet they paid SO much for America's support in the NSG (the biggest payment possible). Did India really expect China to offer the same support for free, considering that we are NOT friends?

You want something, you offer something in return. That's how the world works.

Now let India come and negotiate. We are businessmen after all.

What do you want?

 

[Spectre]

I think you are confused.

He is talking about tariffs. Do you know what happens when you raise tariffs against a certain country? They raise tariffs in return. Trade war 101.

Why do you think there is so much barking about the Indian trade deficit to China... yet the trade deficit keeps growing year after year?

But again, I'd love for you guys to finally, for once... put your money where your mouth is. Start a Trade war, we didn't build up several trillions in currency reserves just to lose a Trade war.

Good Post. Specially about the relevance of your 3 trillion dollar reserves in trade wars.

Indian Posters - Keep your calm. Don't give into baits. Let me give a quasi realistic picture =

China right now will eat India alive in a trade war. They will outbid us in each and every off shore contracts like purchasing oil fields, non IT exports and major E&C contracts. They have capability to put a run on rupee. They can impose serious inflation in India by cutting supply.

All this will come at a cost to China - but a cost they can afford considering they will be finishing off the India story at their terms.

Does this mean we throw in the towel or embark on a glorious but ultimately suicidal charge on China? No. Here is what I think we should do -

LEARN FROM CHINA

1. Engage China and make them a partner in Indian growth story:

Chinese companies are very interested in India as a growth engine. Alibaba and countless other firms are ready to invest in India - an amount which will dwarf Japanese and American investments. Their E&C firms are ready to provide lucrative financing options. Their capital goods manufactures already provide best in class Trade Credits.

More China gets into India, further it will become a stakeholder in Indian prosperity and work in alliance with Indian interests. You win the war by co-opting the enemy

2. Be a coward

India cannot confront China on territorial and geo-political issues alone and hope to come out ahead. This is a an UNDENIABLE FACT. So confront China as a part of a bloc from the rearguard. Let the Americans and Japanese take the body blows and be ready to feast on the left-overs.

The mistake this time made in NSG is that India took the front seat while in '08 USA was running the show. India for all it's cumulative power is a rookie when it comes to power posturing. It also doesn't have the leverages, a country like US acquires throughout decades of wheeling and dealing. We will get there but this was too soon. So you see what happened - We got back-stabbed by the Swiss and the Brazilians, Russians gave us their support but refused to lobby on our behalf, US made half -hearted attempts as it suits them to make India loose and drive India further into their camp.

We should have either negotiated a stronger commitment from US where it would have threatened dire consequences to China or we should have dealth with China directly by offering them concrete benefits such as Bullet Train contracts, Preferential trade terms and Reactor deals as @Chinese-Dragon suggested

3. [B]Break Rules
[/B]
Sign the goddamn NPT and then renege on it. China signed it and is a member of NSG but does it give two hoots for it? No! It breaks them with impunity. We bit the bullet and did the nuclear tests - did the sky fall? No! After couple of years of mild pain, we were back in business. Now we are in a even more favorable situation. Only currency in this world is commerce, rest is all BS. As they say in India "Paisa Phek, Tamasha Dekh" crude translation "Throw money to make others dance to your tunes"

Regards

[USER=37361]@MilSpec @Joe Shearer[/USER]

 

[AndrewJin]

What do you want?

hmm, good question.
What can India offer?

 

[Echo_419]

I'm just wondering, if they start a trade war and stop importing electronic components, how will they assemble their make-in-india phones?

We don't import anything of strategic value from you & if you think that there aren't substitutes for electronic components then you are dead wrong

 

[AndrewJin]

We don't import anything of strategic value from you & if you think that there aren't substitutes for electronic components then you are dead wrong

Do it!
Can't wait

 

[Echo_419]

hmm, good question.
What can India offer?

you asked the Question & you want me to answer, WTF?