India lure China industrial investments

The Global Times announced that the Serum Institute of India would jointly develop a Covid-19 vaccine, with the University of Oxford. The Global times concluded: “India is known for its scientific research in medicine development. High production and low prices in its vaccine production capacity are two advantages that make the South Asian nation a good partner in vaccine research and development”.

Even there are border clashes between Indian and Chinese troops in the Ladakh and Sikkim region, China is India‘s biggest trading partner.

The bilateral trade between India and China amounted a total of $95,5 bio and an increasingly unsustainable trade deficit for India of $57.86 billion in 2018. Industrial and infrastructure investment bougth India from China, India delivers commodities and raw materials, but also machines, electrical equipment and plastics to China.

China also invests in Indian energy and transportation sector. Chinese companies have pledged investments of $3 billion in wind and solar energy development, in India. But it is the telecom sector that has seen the largest Chinese presence in India, where the four Chinese companies Xiaomi, Oppo, Vivo and OnePlus dominate the Indian market. They control 51% of India’s $8 billion plus smartphone market.

The Chinese do not transfering knowledge, knowhow, technology, spares, or even maintenance instructions, for their projects. So the trading partners are living in dependence to the chinese companies. All this indicates that Chinese multinational companies will become a major threat to Indian companies in a few years.

Anyhow the German sold Kuka to the chinese Midea Group.

But now India is on the way to lure companies away from China. Bloomberg reports that a 461,589-hectare land pool will be designated for manufacturers. Already, manufacturers from the U.S., China, Japan and South Korea have reportedly expressed interest in investment. India especially favoured investments in the garment sector. This will support the Chinese development from a production hub of cheap products to a high quality producer and a service hub.

“We have the advantage of coastline and ready-made industrial parks with necessary clearance. We are focusing on certain sectors like IT and related manufacturing, food processing, and chemicals and have been holding video conferences with investors,” Rajat Bhargava, special chief secretary of the state’s revenue department, told Bloomberg.

The chance of success is very good as manufacturers from the U.S., China, Japan and South Korea have reportedly expressed interest in investment, so a bloomberg report.

For the western countries the project is from strategic interest to get control into the asian continent. India is a neighbor state of China. Both states unite with 1,4bio people each nearly 40% of the worlds population and more than 50% o fglobal demand. There are many chinese and indians abroad. All those will back the products of their country of origin. If both states will work together the western nations will loose their influence and position in the world. And both states have a lot to do. Even china is ranked at second position in world bank ranking the position in human development index (HDI) is at rank 85. that means that there is a high demand to increase life expectancy, education and income. And this means there is a big domestic market. If they will get the resources they need they will have a lot of work to meet the demand of their own people. And this means that the companies will survive, even if USA or Europe will sanction chinese products.

This development will endanger Europe much more than the Americans, as Europe will fall back to third rank in the continental ranking of world bank and could also its leading position in the human development index (HDI).

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