Greater industrial cooperation can help reduce distrust between Indians and Chinese, directly benefit their growth and usher in a new climax of globalisation, a state-run Chinese daily said today.
“Industrial cooperation can help reduce distrust between Indians and Chinese. The future direction of the Sino-Indian relationship depends on whether the nations’ economic activities can alleviate their long-standing concerns,” an article in the state-run Global Times said.
It said the industrial cooperation can directly benefit the growth of both countries, weaken nationalist sentiments embedded in both societies, and offer new perspectives on each other’s rise.
“China and India should be encouraged to look at the big picture rather than a disputed patch of land. China and India’s industrial cooperation will usher in a new climax of globalisation,” the article said.
It said Apple CEO Tim Cook and Foxconn Chairman Terry Gou recently made trips to India, reportedly announcing plans to relocate their factories from China to India.
“Foxconn plans to build 10 to 12 factories in India by 2020. What’s more, many Chinese enterprises are showing interest in investing in India,” it said.
“There are two countries that have the highest potential to replace China’s position in the global value chain – Vietnam and India. Their labor costs are lower, and they have already begun taking low- and middle-end manufacturing from China,” it said.
“The rise of ‘Make in India’ will probably bring China and India into more fierce competition in some industries, but it will also create more space for mutual development,” the article said.
It said the key to maintaining the upward trajectory of their economic ties is to reduce direct rivalry and find more industrial connections. Such joint efforts in different industries will produce unprecedented benefits and reinforce the value chain of shared interests, it added.
“Many Indians fear China’s growing presence. Such a sentiment arises from years of estrangement despite being neighbours. Conservatism emerges in fear of competition. When competitiveness of ‘Make in India’ is lower than ‘Made in China’, the railways will ignite concerns among Indians about China-made products,” it said.
“Such concern is one of the major barriers that obstructs India from introducing more foreign investments into local manufacturing and hinders the revenue streamlining process,” it said.
“Surpassing China is no longer a long shot for the Indians. When the growth of the Indian economy speeds up, and manufacturing becomes more competitive, the Indians will be more open-minded toward China,” it said.
“As the Chinese steel, construction, machinery, textile and electronics industries are eager to enter the Indian market, and India’s IT, pharmacy and chemical industries are waiting to tap into the Chinese market, there is a great need for a platform where industries, capital and technologies can connect,” it added.