India thinks that China has no where else to invest its surpluses. The
BRI alone is bigger than what India can offer in areas of investment by
China, but of course that is a State sponsored investment, with private
participation. And by a stroke of good luck, India is not in the BRI.
Nor the RCEP, that would afford India another organisation to sabotage.
India's
membership in BRICS and SCO has to be scrutinised in the face of its
apparent intent to sabotage its agenda. It did not escape notice that
some are already pointing out that Modi's action in SCO had a lot to do
with his visit to Washington recently. That could be food for thought,
as to the sudden change in his drastic move to cripple the SCO.
Xiaomi's
predicament in India had been criticised in China as well by some, who
probably knew this was going to happen long ago. The Taiwanese, Wistron
and Foxconn, are probably more astute and pulling out when they saw what
is happening with their investments. Foxconn was expecting subsidies
that never materilised. They were actually lured to India by following
Apple as supporting players, but it did not turn out well. If Xiaomi
still insists on remaining in India, it really deserves to be screwed.
Apple
will have to remain in India as it has to tow the USA line by
'de-risking' its operations in China, and cannot extricate itself from
India. Actually it was reported that India only accounts for 10% of
Apple's production, while 90% still remains in China. India's long term
share was supposed to rise to 25% of Apple's production target, with
China the other 75%. By and large, Apple still has to rely on China's
downstream supply chains, with integral parts still needed to be shipped
to India for its assembly line. That will add in cost, which negates
the savings in lower wages paid to Indian workers. Moreover, the level
of skill of Indian workers is still not on par with Chinese workers.
India's
wet dream of overtaking China to be the 'factory of the world' is, I
think, completely in tatters by its actions against Xiaomi, Wistron and
Foxconn and its stance of stifling progress envisaged by members of
BRICS and SCO. Members of those two alliances will think twice about
bringing India into their progressive outlook going forward, not to talk
about investing in India to benefit the country.
Anonymous
3 comments:
China's retaliation will always be calculated to inflict maximum damage to any country that tries to sabotage its investments. It is not retaliation plucked out of thin air on the spur of the moment. It is pivotal, calibrated and closely discussed before being implemented. India's day of reckoning will come.
China's latest retaliation is against Lithuania. China is cutting off and removing its China Railway operations in Lithuania. This will hit Lithuania's economy very seriously. Lithuania had been antagonising China endlessly, with its stance on Taiwan, the proverbial straw that broke the camel's back.
The power that China holds comes from its ability to control its enormous production capacity, established production infrastructure, market size and control of essential commodities. It does not come about by chance. China had been working on accumulating resources, investing in essential infrastructures, building up relations with resource rich countries around the world, particularly in Africa.
Other countries may attempt to isolate China, de-risking if you want to call it, but the cost of doing so, like setting up similar infrastructures for production themselves, or under alliances is not going to work. The hold that China has on so many things is beyond the ability of any country to replicate. In terms of size in supply and demand, China holds the key.
Lithuania is a typical little asshole thinking it can punch above its weight against China. The Pinoys better learn from this since they are not learning anything from Ukraine.
Ya right. The Pinoy also itch asshole that needed to be sodomized
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