2.3 % Grew in China’s Economy

  China’s economy recovered to pre-pandemic growth rates in the fourth quarter, propelling it to a stronger than expected full-year expansion of 2.3% and making it the only major one to avoid contraction.  Gross domestic product climbed 6.5% in the final quarter from a year earlier, fueled by stronger-than-expected industrial output, the statistics bureau said Monday.   Covid-19, which has ravaged the world economy, first emerged in central China in late 2019. But the world's second-largest economy also became the first to bounce back after imposing strict lockdowns and virus control measures. It is expected to be the only major world economy clocking positive 2020 growth. In the last three months of 2020, China's economic rebound continued with a better-than-expected 6.5 percent growth on-year, a sustained improvement since the second quarter. This brings it back to a pre-pandemic trajectory, although full-year 2020 growth is still its worst performance since 1976, when the ec

The Dragon's Way

After the border tensions between India and China. "Boycott China" emotions have started trending again. India is now importing almost 80 billion dollar worth of goods from China which is 17% of it's total imports. The influx of chinese products began in 1992 when globalisation began in India and now it has a stronghold in many sectors of Indian industries. One of the most impacted sector from chinese imports is electronics especially smartphones and mobile parts. India imports most of it's pharmaceutical supplies from China which can prove to be a big problem in the future if Indo-China tensions intensify. China is now world's second largest economy and India will have difficulty in boycotting it's goods. But it is not impossible to boycott China. We need to know the root cause of how chinese communist party wants to dominate the world and what dirty tactics are used by them for achieving this economically, politically. The border disputes which China are doing with India, same China is doing with Taiwan simultaneously. China is not only threat to India but poses a danger to all the democratic countries across the world. In this article, I am going to talk about the several tactics that China resorts with other countries economically to become a Superpower. 

Evil Trade Practice of China -
China joined the World Trade Organisation in 2001, while joining, WTO imposed certain conditions upon China. China promised to liberalize and open its economy further, so that trade could be easily conducted between China and other countries. Meanwhile today almost after 20 years later China has opened up its economy to some extent, but broadly speaking China has aggressively misused the WTO guidelines for its own benefits. We can find made in China products is almost present in every country across the globe. This is the extent to which China exports worldwide but when it comes to import, the largest social media companies in the world - YouTube, Facebook, Google, Amazon are no where found in China. This is simply a one sided trade practice. 

Dumping Strategy -
Dumping refers to export of locally made product at very low prices so that it would drive the local industries of that Country out of business. For example, China is dumping a key medicine - ciprofloxacin hydrochloride - below cost in the Indian market and hurting the domestic pharmaceutical industry. Chinese government supports dumping, they gives subsidises to the companies. 

Copycat China -
Chinese companies have been known for copying products, brands and businesses from the West and selling them with some minor changes. China is indulged in Intellectual property (IP) theft in almost every sector. No matter which country introduces a new technology, clones will be developed in China. Normally this is not possible in a democratic country. For example, if US company wishes to clone UK Company’s product, then that company can file a case in court against US company. But there is no question of court cases in China. The communist government of China promotes these clone companies and keep them protected from court cases. Trade rules are twisted by China to ensure benefits to these companies. If a country wants to set up a business in China then they have to transfer there Intellectual property to chinese partners for free. China forces companies to forfeit their technology to chinese companies. 

China Debt-Trap diplomacy  -
China is taking advantage of the proverty of Africans countries. China constructs highways, dams and large infrastructure projects at the expense of crore by giving loans to them and when these countries are unable to repay their loan, China buys strategic locations in these countries. One of the most cited examples of alleged debt-trap diplomacy by China is a loan given to the Sri Lankan government by the Exim Bank of China to build the Magampura Mahinda Rajapaksa Port and Mattala Rajapaksa International Airport. Due to Sri Lanka's inability to service the debt on the port, it was leased to the Chinese state-owned China Merchants Port Holdings Company Limited on a 99-year lease in 2017. This caused concern in the United States, Japan, and India that the port might be used as a Chinese naval base to contain China's geopolitical rivals.

A group of senior lawmakers from eight democracies including the USA have launched a new cross parliamentary alliance to help reduce and effectively counter China’s growing influence in global trade, security and human rights.
The Inter-Parliamentary Alliance on China is a way to muster up a cohesive alliance at a time when the world is in turmoil. The group said that it aims to “construct appropriate and coordinated responses, and to help craft a proactive and strategic approach on issues related to the People’s Republic of China.
Many researchers believe that India is the key component for reducing China’s influence in the Indo Pacific region and also around the world.

Co-author - Mayank Mishra 


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