A trade war is likely to break out between India and China after New Delhi
imposed anti-dumping duties on 93 Chinese products amidst a military standoff
in Doklam area, two state media reports from China said on August 14. China may
consider suspending investments or stopping economic cooperation projects to
ensure security for its investment the state owned Chinese newspaper warned.
The Global Times, part of the ruling Communist Party's publication group,
urged Chinese firms to "reconsider the risks" of investing in India
and warned New Delhi to be "prepared for the possible consequences for its
The newspaper in an article said that China "could easily
retaliate" with restrictions on Indian products, but added that it
"doesn't make much economic sense" for the country.
The Newspaper cited figures from the Indian embassy in China to show that
Indian exports fell by 12.3 percent year-on-year to 11.75 billion US Dollars
while India's imports from China rose by 2 percent to 59 billion US Dollars
resulting in a trade deficit of 47 billion US Dollars.
The trade deficit with China last year mounted to over 52 billion US
Dollars when the bilateral trade stood at 70 billion US Dollars according to
commerce ministry statistics.
"A trade war between China and India seems to be looming large after
India moved last Week to impose anti-dumping duties on 93 products from
China," the report said.
"If India really starts a trade war with China, of course China's
economic interests will be hurt, but there will also be consequences for
India," it said.
The Global Times report warned that "given the tense bilateral trade
ties, China may consider temporarily suspending investment or economic
cooperation projects in India to ensure the security of these
Another article in China Daily said boycotting Chinese goods would harm
India. "Suffice to say, calling for the boycotting of Chinese products and
those related to Chinese investors is not just a fool's errand but also risks
backfiring," it said. "It is the Indian economy that will suffer
because of the boycott," it said.
Any attempt to keep Chinese cellphone companies at bay or shut down
Chinese-invested factories will hurt the Indian economy and cost Indian jobs,