US, Australia & EU back in trade with China. India holding its grudge against China because of the issues at the border. India to continue its boycott with China. India could be the alternate to China as the next manufacturing hub.
U.S had been warning countries all the world to not indulge in trading with China for some time now. Yet U.S themselves had a phase one trade deal with China that is going to benefit the U.S with billions of dollars.
Now the European Union has entered into an agreement to make an investment in China which has shocked the world. Governments around the world have been noticing the hypocritical democratic policies of the U.S. some of whom have decided to take steps for the growth of their economy. Australia has also signed an economic partnership agreement with China in November.
During the current slowing trade conditions, these three have taken steps back on their boycott policy. All three of them made some deals with China that will benefit their economy is some way.
In the meanwhile, the border feud between China and India is on the rise. India is still adamant to follow its no China policy and have not considered cutting any trade deal with China. On the other hand, China is looking forward to get into a few minilaterals whose effects are undisclosed.
China has succeeded in proving its worth in the trade world despite all the opposition. Even though a group of strong economies teamed up to boycott China, but even they can’t deny its importance. China is a significant part of modern economy now and it has become impossible to ignore or fight it.
India’s policy will leave it out of big economic trades that bigger countries have resumed with China. India will not be having a piece of these big supply chains or economic bloc unless it revises its views.
India itself is trying to follow the footsteps of China. Following the tension of Ladakh border, India completely cut off any investments from China. Indian government also denied any upcoming trade agreements from China and has been enhancing its manufacturing sector. India dreams of replacing China in the economic world.
Recently the retiring US ambassador in India, Kenneth Juster during his farewell showed his discontentment. He said that if India wishes to become an alternate to China as manufacturing hub, it needs serious changes. He said that during his tenure in India he experienced most “frustration and friction”.
He added that American companies face difficulty to function in china. The U.S companies are looking to diversify their business and India has a great opportunity to seize the moment. He said to hold the torch, India has to take drastic changes in domestic and international policies.