India's decision to impose anti-dumping duties on 93 products from China has raised fears of a trade war between the two countries.
India’s decision to impose anti-dumping duties on 93 products from China has raised fears of a trade war between the two countries, according to Chinese state media. An article in the Global Times today criticised India’s decision to impose anti-dumping duties on Chinese products, warning India should be prepared for the “possible consequences for its ill-considered action.” It also advised Chinese companies to “reconsider the risks of investing in India amid strained bilateral ties.”
The article noted that even before imposing anti-dumping duties, India was the country with most “trade remedy probes” against China with 12 investigations into Chinese products in the first half of this year. It said that India’s desire to narrow trade deficit with China is “understandable” but trade remedy measures should not be used as shortcuts as it would “backfire.”
“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. Explaining this further, the article claimed Chinese companies will first face a setback due to the anti-dumping measures, while Indian consumers will also face loss. Secondly, it said, China may even consider “suspending investment or economic cooperation projects in India to ensure the security of these investments.”
The report on possible trade war between the two countries comes amid the ongoing standoff between Indian and Chinese soldiers at Doklam in the Sikkim sector. The standoff has worsened the bilateral ties between both countries, with Chinese media and diplomats even issuing threats of war against India. New Delhi has consciously not ratcheted up the conflict. The standoff started in June when Chinese soldiers tried to build a road in the region, which is in Bhutan and strategically significant for India. New Delhi and Beijing had in 2012 decided not to change the status quo in the region without consulting all three parties – China, India, and Bhutan.