China's Manufacturing Monopoly Ending: An Opportunity for India
- India can benefit from the Cold War between America and China through friendship with America...
- India has joined hands with America to realize the dream of making the economic system prosperous and the third number economic system in the world, while China has become fuming.
- America leaned towards India, thinking that only India has a plan to counter the strength of China's manufacturing capacity:
Several reasons behind growing resentment among manufacturers in China
The reverberations of India's Prime Minister Modi's visit to America are being felt in the world's business sectors. It is natural for China to feel tension after seeing the multi-billion dollar business deals between India and the US and the respect given to India. Among India's two closest enemies, Pakistan is languishing due to its own mistakes, while China is infamous in the world for its regionalism policy and misuse of manufacturing capacity. Instead of saying that the cold war between China and America has benefited India, it needs to be said that the Prime Minister of India has publicly seized that opportunity by going to America. What is surprising is that the strength of the relations India has strengthened with the US has now come into play.
If India gets rich it hurts China. Even when India became the fifth largest economy in the world, China expressed displeasure. Now when India has joined hands with America to realize the dream of making the economic system prosperous and the third largest economic system in the world, China has become full of smoke. China has said that America is firing against us by putting a gun on India's shoulder.
The Chinese authorities are losing sleep over two issues. One issue is that some big and reputed companies want to stop production in China and start production in other countries. India tops the list of other countries and is also a hot favorite for investors. Another point is that India can no longer fall into its trap and India's relations with America are improving.
Due to China's manufacturing capacity and ability to pour goods into world markets at cheap rates, many small countries' manufacturing plants in various sectors went into recession. Countries including the US were troubled by the cheap goods of China, but no one could tell China directly.
America's love for India grew ever since India began publicly criticizing China's anti-humanitarian policies, including regionalism. China used to dominate small countries by helping them economically. In which Pakistan, Sri Lanka, Nepal etc. are at the forefront.
Frequent changes in policies, strict laws, etc. are the main reasons behind growing resentment among manufacturers in China. During the Corona period, China was disgraced at the global level. The then US President Trump publicly called the Corona virus the Wuhan virus or the Chinese virus. In fact, the Cold War started between America and China since then.
After Biden came to the presidency in the United States, this cold war began to calm down, but during that time, the controversy was aggravated by pointing fingers at the United States due to the Russia-Ukraine war. Then the Cold War deepened as America entered the recession.
Due to China's policy of regionalism, some small countries fell into its trap and became bankrupt. America leaned towards India, thinking that only India has a plan to counter the strength of China's manufacturing capacity.
The condition of China seems to have worsened after India overtook China to become the number one in terms of population growth. After becoming number one in population, India has tried to turn this adversity into an opportunity. A growing population can fuel many burning problems. But India tried to tell itself that labor is cheap there.
China's influence and grip on manufacturers is so strong that they cannot raise their voice against the government or criticize the policies of the government. By way of example, Jack Ma of Alibaba Group fame found it costly to criticize the Chinese government. They had to go underground. Now they are back on the surface because China needs them. China began appreciating Jackma again as the need arose to protect producers.
The big companies manufacturing in China are not ready to move there because the labor is cheap, but now as India reaches number one in population, it is believed that the labor will also become cheaper. Last Friday, Prime Minister Modi signed an agreement with the semiconductor manufacturing company Micron during his visit to the United States.
It is worth mentioning here that Semiconductor company Micron, which is setting up its unit in Gujarat, will invest 825 million dollars, due to which 5000 people will be able to get jobs. The Micron company was tired of Chinese laws.
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