7/25/2023

No where better to invest or plain stupidity to invest in India? Or a deliberate scam to rob their employers in collaboration with the cheats?

 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:

  1. 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.

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  2. 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.

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    1. Ya right. The Pinoy also itch asshole that needed to be sodomized

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