But of late, China is reducing its iron ore dependence on India, lowering its imports by about two thirds, or about US$160 billion worth. The Indians increased export duties on iron ore by 50%, which the Chinese find it exhorbitant and is diversifying its imports to cheaper sources. Now this is big loss for India by being too greedy.
China is instead buying more ore from Australia, Brazil (a member of the BRICS) and developing mines in Guinea (a potential BRICS member) and other sources as well.
Now, why is China making this move. In my humble opinion it has also to do with India now closing ranks with the USA, and with China lock in dispute with India over the borders, China is not waiting to be left in the lurch should the snakes decide to sanction iron ore exports to China. It is not impossible, and it will be a matter of grave concern, since China needs much more iron ore to fuel domestic and overseas demand for steel for infrastructure developments. Overdependence on Australia, close allies of the USA and India, is also a dangerous issue for China.
China learned a costly lesson over the semiconductor and chips industry sanctions orchestrated by the USA, and it not about to repeat the same mistake. China is going all out to be self-reliant and diversify its supply of raw materials as widely as possible. Africa is now the safest and most reliable supply chain for China to build up its raw material dependence in the long term. China already spent decades building up Africa, and is now reaping its just benefits.
Anonymous
Beijing should not only reduce imports from India, but also ban exports to India such as critically needed pharmaceutical APIs and supply chain intermediate manufacturing components, and divert northward the water that flows from Tibet into the Indian Brahmaputra and Indus rivers.
ReplyDeleteJust one major essential sought after material from China-
ReplyDeleteThe RARE Earth!
Just simply ban this and the UAssA Military Industrial Complexes stop humming and less Beans of the Other World murdered and killed.
Other Industries that needed this Material for the other products also be stop manufacturing.
So China hold the Ace Card in being the Highest Factory of the World to produce all products from Military Killing Arsenals to even your all electrical appliances.
China is abbding their WTO's rules and obligations.
Just to add China Beijing sets out foreign policy principles in NEW Law.
ReplyDeleteThis is to counter any foreign interventions in ways of their sanctions and other nefarious activities against them.
Now no more acting as Laws abiding goodies humble patient beans to be bullied longer.
Just a I said earlier, any adverse actions against them would be retailated by them
China is trying to abide by their standing in the WTO's rules and agreements as a WTO member.
Yet, these weasels are not playing fair. So why be stupid and let them carry on?
As I said ban the exports of the needed RARE earth as the top resource country and used them to start manufacture your own Military Arsenals to beat all those the Western Scoundrols processed.
Then, acted like the UAssA with Russia to go round and start collect protection monies like the Donkey and Elephant Americunts been doing.
With Us or against Us?
Then have the Yuan as the Reserve Currency and then like the UAss become the Warlord and lived as Mafia Chief.
Chinese should know how to behave like WarLords as they had been living as thus the Past Years of History.
Become like the Old UAss and become the New World's Rules Based Order Emperor.
Cheers
Apple's manufacturing in India still depends on Chinese supply chains providing essential components for its factories, which right now is being shipped to India to support the Apple manufacturing base in India. No other country is able to provide the bulk of those components even if they try. China should start to restrict export of all those components to India as well.
ReplyDeleteSince India wants to start playing games against Chinese manufacturers in India, China can easily oblige. China depends little on India and can easily find alternative sources for its requirements, like iron ore.
For India to antagonise China right now is committing economic suicide like the EU, when India needed investments in manufacturing to create all the jobs for its high growth population. Having a fast growing population needs fast growing job creation, and only in manufacturing is this possible.
Which country has been investing big time in Vietnam, India, Bangladesh and Asean over the decades? Chinese companies should now avoid India at all cost, whether in technology, infrastructure or raw materials extraction. Let the Japs and Western countries help India and see what they get. China should focus on Africa.
Talking about ASEAN, despite the groups economic orientation towards China generally, the Philippines is the weak link that the USA is exploiting. With a weak leader, a hardcore anti-China military, a population highly brainwashed by the USA propaganda machine over the decades, and with lots of younger half bred Pinoys of USA/Filipino blood, it is easy to manipulate the Government and country.
Manipulating Indonesia and Malaysia, with Muslims the controlling power, the USA is unlikely to succeed, though there have been attempts in Malaysia over the years. Myanmar, Laos and Cambodia are basically friendly towards China, and afford little leeway in terms of free elections for the USA to install stooges into power. That leave Vietnam, which the USA is trying, via India, to instigate hostilities towards China, knowing the South China Sea dispute is something to leverage on. But Vietnam depends mainly on the Chinese Market for its products and unlikely to bite the carrot offered by India of a bath tub gift for a start. That leaves the Philippines as the most promising weak link that the USA is going all out to exploit.