Weakening rupee pushes India to settle with China in Yuan

[TaiShang]

Weakening rupee pushes India to settle with China in Yuan

Published time: 29 Oct, 2018

© Reuters/Thomas White


New Delhi is considering paying for some imports from China in yuan, Bloomberg reports. With the weakening rupee, India is hedging its losses against the US dollar in trade.




Gold demand up 42% as countries abandon US dollar in expectation of geopolitical shift

India’s rupee has plunged to a fresh record low against the greenback recently. China-India trade is mostly settled in dollars since there is no direct convertibility between the rupee and the yuan.

By paying China in yuan, New Delhi seeks to reduce escalating costs because of the rupee drop. India is a net importer of oil, and wants to save on dollars to pay soaring crude costs. This fiscal year, India will have to pay a record $125 billion for oil, or 8.8 trillion rupees, the highest in rupee terms since 2001.

For Beijing, the move is set to boost the influence of renminbi globally. The BRICS group of emerging economies, Brazil, Russia, India, China and South Africa, have already discussed switching to yuan in trade.

As the trade war between China and the United States escalates, India has been able to fill in the gap in trade between the world’s two largest economies. Between April and August, India’s exports to China grew an average 52.9 percent year-on-year, highest in the past few years. This has helped India to reduce its trade deficit with China, which stood at $63 billion last year, by $2.8 billion.

India plans to further cut the deficit by increasing agricultural exports such as soybeans and cotton to China, which are at the centre of Beijing’s trade war with Washington.

https://www.rt.com/business/442520-weakening-rupee-india-china-yuan/

 

[艹艹艹]

Is China save India?

 

[TaiShang]

Is China save India?

Let's say, helping each other. The US does facilitate it. That's the funniest part.

 

[Quibbler]

Is China save India?

Also true other way around. You dont seem to understand - trade is a 2 way street, you ain't doing anyone a favor.

 

[艹艹艹]

Also true other way around. You dont seem to understand - trade is a 2 way street, you ain't doing anyone a favor.

 

[seesonic]

Also true other way around. You dont seem to understand - trade is a 2 way street, you ain't doing anyone a favor.

Say the party that is having a deficit

 

[Jlaw]

Is China save India?

India is a superpower. India doesn't need any country's help. India can have one million brahmos by China's border on a whim.

 

[Quibbler]

Say the party that is having a deficit

Exactly if anything we keep a few hundred thousand Chinese employed.

 

[Feng Leng]

LOL even Russia sees India's humiliation!

 

[ohmrlobalobayeh]

Also true other way around. You dont seem to understand - trade is a 2 way street, you ain't doing anyone a favor.

You're the 1 having a deficit n is in an ever-increasing need for more n more chinese goods. No point masking this weakness and trying to brush it off claiming 'mutual benefit'.

If we go by your definition, india is the lesser partner in this 'two way trade'.

Thus india is in an urgency to negotiate a direct forex with the yuan- not the other way round.

Exactly if anything we keep a few hundred thousand Chinese employed.

More like china is the lifeline for hundreds of millions of indians.

If anything, china has little to lose if that 3% of its exports decreases, while hundreds of millions of indians would be thrown right back into the stone age if chinese imports drop, with indians being forced back to snake charming and pulling man-powered rickshaws.

• India: $67.9 billion (3%)

While only 0.97% of China's imports- comes from India. This is why Indian officials are constantly talking about finding ways to increase exports to China, while China cant even be bothered much to import anything from india, since theres hardly anything that india produces that cant already be produced by the chinese themselves and are in demand by the them(except perhaps gems n diamonds)

 

[seesonic]

Exactly if anything we keep a few hundred thousand Chinese employed.

Base on your indian logic.

China is saving India by setting up factories creating thousands of job?

 

[TaiShang]

Base on your indian logic.

China is saving India by setting up factories creating thousands of job?

Xiaomi leads Indian mobile phone market in Q3; Vivo, Oppo also in top five

By Xie Jun and Wang Yi Source:Global Times Published: 2018/10/31

Indian fans of Xiaomi line up outside a launch event for Xiaomi's new products in New Delhi in April 2015. File photo: VCG


Chinese mobile phone companies, which have taken a big share of India's mobile phone sector, showed no signs of weakness in the third quarter despite a market contraction.

Experts noted on Wednesday that India, with its competitive market and ample consumer demand, still offers a promising future to Chinese mobile phone companies.

The experts' comments come as several Chinese mobile phone brands reported good business performances in the Indian market in the third quarter, statistics from Canalys, a Singapore-based technology market analyst firm, showed on Tuesday.

Xiaomi shipped more than 12 million smartphones in India in the third quarter, growing by 32 percent on a yearly basis, making it the largest smartphone vendor in India.

According to a statement from Canalys, Xiaomi took pole position for the fourth quarter in a row, further cementing its lead in the country.

A Chinese investor surnamed Wang, who focuses on cross-border investment between China and India, told the Global Times that he thinks the biggest reason for Xiaomi's popularity in India is because they are relatively cheap.

A Chinese telecommunications expert attributed Xiaomi's success in India to the fact that its "geek" image is welcomed by local consumers.

"Xiaomi's localization strategies, such as adding tailored designs for local consumers in their products, as well as doing local promotion, work well in India," Liu Xingliang, head of the DCCI Internet research institute, told the Global Times on Wednesday.

Chinese mobile phone brands Vivo and Oppo shipped 4.5 million and 3.6 million units, respectively, in India in the third quarter, up by 12 percent and down by 2 percent, making them the third- and fourth-largest phone vendors in the country.

Shipments by South Korean brand Samsung slipped by 2 percent, but the company still managed to be the second-largest phone vendor in the country.

Chinese mobile phones are swimming against the tide, though, as the mobile phone sector is declining in India. In the third quarter, India's mobile phone sector contracted by 1 percent on a yearly basis, the Canalys data showed.

Liu said that India - which has a big population - is still a promising market for Chinese mobile phone vendors.

He also pointed out that competition among Chinese brands in India is good for China's mobile industry.

http://www.globaltimes.cn/content/1125395.shtml

***

Let's say it is good for the two giant markets to cooperate and seek complementaries.

While there is a reckless superpower alienating friends and further pushing away enemies, China can go just the other way round and make new friends in this opportune environment.

 

[Path-Finder]

#Fake~News

 

[Globenim]

Bloomberg

people familiar with the proposal said

I will care when they cite a trustworthy newspaper that has sources that can be taken serious.

 

[seesonic]

I will care when they cite a trustworthy newspaper that has sources that can be taken serious.

You wouldnt because you responded