US-China trade war: Amid the rising trade war between the US and China intensifies, the likelihood of investment pouring in India from the world’s second-largest economy seem forthcoming, said a veteran businessman.
US-China trade war: Amid the rising trade war between the US and China intensifies, the likelihood of investment pouring in India from the world’s second-largest economy seem forthcoming, said a veteran businessman. Reacting to the reports that the US President Donald Trump may meet Chinese counterpart Xi Jinping coming month, Anand Mahindra, Chairman of Mahindra Group, also said that even if an agreement is reached, the Chinese companies with large exports to the US may hedge and invest in an Indian subsidiary and transfer the scale manufacturing skills. The direct exports may become indirect, he also tweeted.
The statement from Anand Mahindra comes at a time when China retaliated to higher tariff by the US by announcing duty on the American exports worth $60 billion. The US had already announced to imposition of 25 per cent levies on Chinese items worth $200 billion. The India firms may also take advantage of the newly arisen opportunity, he added. The Chinese investment will help in creating new jobs, something of the kind that India needs, he also said in a reply to a question by a follower on his tweet.
Meanwhile, on Tuesday, the US President Donald Trump denied that the ongoing dialogue with China had collapsed. In fact he sounded a hopeful note about the chances of reaching a deal saying he shares an ‘extraordinary’ relationship with Chinese President Xi Jinping. Donald Trump plans to meet the Chinese counterpart at a G20 summit in Japan in June. Since Donald Trump has arrived, he has followed a policy of protectionism as part of an ‘America First’ agenda. He has already moved against various nations whom he says to be following unfair trade practices.