Why We must Boycott China!

Why India Must Boycott China!

Hello, friends!

The border tensions between India and China are the worst they have been in several decades

More than 20 Indian soldiers have lost their lives.

Because of this, the sentiment of boycott China has started trending again in India

To express this emotion, some people are even throwing their Chinese TVs out of their homes

I think if we want to make this Boycott china movement successful

then it is not going to happen by breaking TVs and toys

We need to understand the root causes first of

how the Chinese Communist Party wants to dominate the world

and what dirty tactics they resort to for achieving this- Economically, Politically and Geographically

Don’t harbour the misconception that only India is facing such a problem.

The border intrusions that China is doing in India,

China is doing a similar thing with Taiwan simultaneously

And what are the several tactics that China resorts to with other countries economically

We will talk about all of this in today’s Blog

So that we can come up with strategies against China along with other countries

Because today, China is not just a threat for India

but poses a danger to all the democratic countries across the world

When I say. China. here, I am only referring to the Communist Party of China.

A party that has established its complete dictatorship over the people

The Chinese people are not at fault here

Come, let us see

First, we will talk about economic tactics. But I would like to begin with the basics of trade

  • Why would any country trade with other countries?
  • There could be three main reasons
  • First, the non-availability of a certain product in your country while it is available in another country.
  • For example, bananas were not available in Britain, in the UK, prior to 1633
  • because their climate was not suitable for growing bananas
  • So, they would want to trade to import bananas
  • The second reason could be the availability of a product or service in another country, at cheaper price
  • as compared to your own country.
  • A good example of this would be the call centers in India
  • US companies have set up their call centers In India because its cheaper for them to do so here
  • as compared to the US.
  • The third reason could be the availability of a product or service of better quality in another country
  • That is why you would want to trade with them.
  • So the advantages of trading are very clear
  • Consumers will have more choices and have access to cheaper goods
  • Every country will be able to specialize in its own indigenous areas and be able to build better products
  • and this could benefit all the countries internationally
  • So economically its good for every country.
  • In fact, trading is so beneficial that research indicated that
  • for every 1% increase in the trade to GDP ratio,
  • There is a 0.47% increase in the GDP to per capita ratio of that country
  • So, there is a clear cut relation here- trading increases the GDP of a country
  • But this is a very simplistic explanation and there are many other complexities in the real world
  • For instance, what about developing and underdeveloped countries
  • that cannot develop specialization in any sector on their own?
  • If a country neither has a great natural resource, nor a specialization in anything
  • so they would not be able to export any product or service to other countries
  • They would only have to import
  • Under these circumstance,s trade will only result in losses for that country.
  • What can a country do in such a situation?
  • In such a situation several developed and developing countries levy import taxes
  • that are called tariffs
  • Taxes would have to be paid to import a product from a country abroad
  • This would make that product more expensive for the consumers
  • Imposing such taxes ensures benefit to the local industries of the country
  • There could be several other reasons for imposing tariffs
  • For instance, if a country wants to pressurize another country regarding a geopolitical decision,
  • Or if a country disapproves of an economic decision of another country
  • So tariffs are also imposed for mounting pressure.

Let us now see how the Chinese Communist Party misuses trade and tariffs against the other countries

China joined the World Trade Organization in 2001.

Certain conditions were imposed upon China while joining the WTO

China promised to liberalize and open up its economy further

so that trade could be easily conducted between China and the other countries

But today, 20 years later, China has opened up its economy to some extent

But speaking broadly, China has aggressively misused the WTO for its own benefit

So, what is the situation today?

You can find made in China products in almost every country across the world

This is the extent to which China exports its products abroad

As far as imports go,

the largest social media networks in the world- YouTube, Facebook, Google, Amazon

are nowhere to be found within China

China has not allowed them to enter its realm

This is a one sided trade, in a way

China allows the export of made in China products very easily

but restricts the entry of other countries within their own realm

Instead, China copied these companies and pilfered their technology

and created copycat clones of these companies within their country

Today, I-in China

Youtube is replaced by
Youtube is replaced by
Amazon by Alibaba,
Amazon by Alibaba,
Google by Baidu
Google by Baidu
and Facebook by Weibo
and Facebook by Weibo

These are all copy cat companies that stole the entire concept and ideas and have created their clones

to prevent the other companies from reaping benefits

and to prevent the other countries from benefiting from trade

China has indulged in IP theft -Intellectual property theft- in almost every sector

No matter which country a new technology is introduced in, clones will be developed in China

Normally it would not have been possible in a democratic country

For instance, if a company of the UK wishes to clone the product of a US company.

then the US company can file a case in the courts in UK

But there’s no question of court cases in China

The dictator government there promotes these cloning companies and keeps them protected from these things

Infact, the rules have been twisted in China to ensure benefits to these companies

For example, according to one such rule ,if any foreign company wants to set up a business in China,

then they will first have to transfer their intellectual property to their Chinese partners

The European Union Commission had filed a complaint regarding this in the World Trade Organization in 2018

to highlight how China misuses these things

China forces the foreign companies to forfeit their technology to China

They would have to forfeit it for free if they wish to do business in China

It has been estimated that USA incurs a loss between 300-600 billion dollars annually

due to this pilferage by China

The second weapon of China is what is called dumping in economics

Dumping refers to the export of a locally made product at such ridiculously low prices

so that it would drive the local industries of that country out of business

Your market share would increase and you would gain monopoly in that industry

and you would then take control of that particular industry in that country

For instance, take the example of the toy manufacturers of India who manufacture toys at a certain cost

But Chinese companies come in and sell these toys at much lower prices

So the consumers would prefer to buy the less expensive Chinese alternatives

And if this continued for a couple of years-

If nobody wishes to buy the Indian toys, the Indian toy makers would be driven out of business

and the Chinese would gain monopoly over the Indian toy industry

You might wonder how China is able to manufacture goods at such low prices

that enables it to indulge in dumping

There is a simple answer to this- The Chinese government supports dumping

The Chinese government provides export subsidies to the companies

They are provided with money and subsidies to export and dump in other countries

USB sticks, calculators, Vitamin C and E, nylon cords, measuring tapes, CFL lamps

caustic soda, kitchenware, tableware, solar cells

This is a list of items that China is believed to be dumping in India

Indian government has begun a review of them

A news report of yesterday stated that China has begun dumping of a very important medicine in India

and the Indian government is considering a tax hike on it to stop the dumping

And India is not the sole country (that is facing this problem)

Investigations are currently ongoing in Australia over how China is dumping steel and aluminium in Australia

In fact, European Union has already increased the import tax on the steel that is coming in from China

Their investigation revealed how China was dumping steel in Europe and USA

So, due to the aforementioned reason and the dumping tactic, China is able to

export so much more than what it imports today

Its trade remains in surplus when compared to most other countries

The local industries of the rest of the countries are destroyed by being driven out of business

and makes the other countries dependent on itself

These are the methods used by it

So the lesson is that the Indian government should keep its eyes open and remain alert

and keep a tab of all the things that China is currently dumping in India

to raise taxes on them accordingly and stay vigilant regarding these things

A third tactic is currency manipulation

China is accused of deliberating undervaluing its currency in comparison to the US dollar

in order to maintain its cost advantage

So that the cost benefit of 30-40% is maintained whenever someone wishes to buy a made in China product

The low value of the currency that it maintains would not remain so, if viewed in the free market

So this is another accusation that is leveled against China

As a result of these reasons- the unfair trade practices, dumping, pilferage and the currency manipulation done by China

These are the reasons due to which Donald Trump had declared a trade war against China

Donald Trump had hiked the import tariffs to prevent China from harvesting these benefits

and the trade war would have caused both the countries to incur losses

because these effects will tell us- if we boycott China through reduced trade and increased tariffs

then what would the consequences be?

Politically, the Chinese Communist Party

is trying to exert its influence in the internal affairs of the other countries through nefarious means

A great example of this is Australia

China is trying to manipulate the people in the internal politics of Australia

It has been alleged that China made several thousand Wechat accounts

to defame and poke fun at the Australian Prime Minister

And not only this, China is accused of building their spy networks in the Australian universities

to spy on the Chinese students

According to a news report of last year, a Chinese student was studying in the University of Queensland, Australia

He participated in a protest against the Chinese government that was being held in Australia

and the Chinese government reached his family home in China

and pressurized the family to keep their son under control

and threatened them with dire consequences

This is how the Communist Party of China is threatening the parents of the students studying in Australia

Australian Strategic Policy Institute released a report last week

which revealed how China is employing covert and deceptive methods to infiltrate

the foreign political parties and the multi national companies

to topple the democratic systems all across the world

I have only spoken about the Western countries and India until now

but even the African have not been spared by China

Taking advantage of the poverty of the African countries,

China constructs highways, dams and large infrastructure projects at the expense of crores

that is loaned out to them

and China is well aware that these African countries would not be able to repay it back

and when these countries are unable to repay their loans, China buys strategic locations in these countries

It assimilates them by physically occupying them

If there is an important port, China takes over it by sending its military and then puts it to its own use

This is called .debt trap of African countries by China.

It destroys a country completely by trapping it in debt

There are several examples of this

Take the example of Zambia- a country in Africa

A 2018 report revealed that the Zambian government

was selling off the entire control of its National Electricity Company to China

because it did not have money to repay China

The biggest and the most important port in Kenya- port of Mombasa

was forfeited to China because Kenya did not have money to repay China

Nigeria is set to become the next country to fall into the debt trap of China

A similar thing is happening with several Asian countries as well

An island in Maldives has been sold off to China completely

Hambantota is a very important, strategic port in Sri Lanka

Sri Lanka first got China to construct it

And when Sri Lanka was unable to repay China

China took up the entire port of 15,000 acres on lease for 99 years

This port has a very strategic location which is extremely close to India

China can use it for anything- for its military warships, its navy or even its army

This map shows all the areas where China has financed ports all across the world

China is questioned on the same premise over its Belt and Road initiative

(It is believed that) the road that China wants to construct through so many countries

would basically be used to lure countries into debt traps

and would then occupy their areas for its military use

Furthermore, there is no free media or opposition in the country due to the dictatorship in China

which could hold the ruling party accountable in the wake of corruption or wrong doing

This is the reason why, when the diseases like COVID 19 spread outside from their country

no body knew anything about what they had done or whether all information had been disclosed or not

There is no free media to report that

So these are the ways in which the Chinese Communist Party is exerting its influence on the rest of the world

You can see that saying .boycott China. and breaking TVs and toys would not have much of an impact

China, here, is playing the game on the next level

by trapping the countries in debt traps and by resorting to dumping

These small steps will make no difference

India would have to begin thinking on the next level to counter China

The good news is that China is against all- Australia, Europe, USA and even Africa

So, if all of these countries come together and unite against China

then there is some hope

Thank you

S Hasan Khan

Love To Write. Techie

Related Articles

Back to top button