When the Ukraine war started and sanctions against Russia hit Russia's energy exports to the EU, India together with China and even Saudi Arabia, all bought discounted Russian oil and resold them to the EU, making huge profits. India, a friendly ally of the USA and EU had been screwing the EU countries for more than three long years, and the USA and EU thought India was on their side.
When China exerted control over rare earth exports to the USA, India bought rare earth from China for its EV and other manufacturing needs. If you have been watching, you will know that India was quietly reselling rare earth bought from China to the USA and EU. Now China has clamped down on rare earth exports to Sout Korea and India, after discovering that South Korea had been doing the same thing, by reselling Chinese rare earth to USA defense contractors. China's action against India has hit the Indian EV manufacturers hard and factories are said to be unable to move production, expected to be for months. It is going to kill off India's EV dream.
In all honesty, India's EV manufacturing still depends largely on China's supply chain. India is basically just doing the assembly of EVs, just like iPhones that still depends on Chinese supply chains. We do not have to look far to understand why Foxconn is moving back to China together with Apple and not investing further in India.
China screwed them both by providing the components for making iPhones at marked up prices, doing much more profitably than assembling those components into iPhones in China itself and making a meagre couple of dollars for all the hard work. Which is why China did not raise a ruckus seeing Apple and Foxconn shifting to India earlier. Why point out the mistake of your competitor when he is trying to screw you?
Oh, by the way Ursula von der Leyen is 'demanding' now that China must continue to supply the EU with rare earth elements, really big quantities. Can we see the desperation now? First Trump demanded, now the EU is demanding. Why should China sell more to the EU to be redirected to the USA for making more weapons for a war that is touted to be starting soon against China. Kids are fond of kidding.
Anonymous
Palki Sharma is again complaining that China is trying to stifle India's development using unfair competition. What global brand has India been showcasing to support her claim that India is indeed competing with China and that China is using unfair tactics to sabotage India.
ReplyDeleteI think that is a big insult to China trying to put India on the same level playing field. Apple and Foxconn are not investing further in India because China is controlling its supply chain servicing Apple in India. Is that what she is nagging about? Is she talking about China clamping down on rare earth elements exported to India, now that China knows India is reselling them to USA defense contractors making weapons to target China? That incidentally is just collateral damage targeting India's own EV makers and manufacturing, sorry to say, for consorting with China's most bitter enemy.
In fact, China cares two hoots what India does, whether it is trying to become the next superpower, the factory of the world, dominate global EV making, sending rockets to Mars or exploring the sun at night. China does what it does best and does what it needs to protect its interest, nothing more.
Palki Sharma is also trying to demonize China by claiming that China is placing hidden ships spying on India. That must be a joke to say the least. What has India got that China does not already have and even more than what India can hope for? China has its own Beidou Navigation Satellites that can see India's sensitive infrastructures for target practice. India better wakes up and not try to toe the USA line by demonizing China too vigorously and shooting its own foot. During COVID19, India was conned into providing vaccines to counter China's vaccine diplomacy, under the dictate of the USA, that in the end deprived India of vaccines for its own use, resulting in the death of millions. I guess lessons are never learnt by India and consorting with the devil cannot be broken off.
India is aiming to host the Olympics in 2036, and the Olympic Committee told India to put its house in order first. What an insult for Modi? What the Olympic Committee saw in India was a corrupt Indian Olympic body, the pathetic performance of India in past Olympics and the poor infrastructure necessary to hold the games. India is in no position to hold any Olympic Games.
ReplyDeleteNot only are the USA and EU having many ways to skin India, but even World Bodies are also doing the same to India. And what can Modi do? Snuggle closer to them to get a better deal, like snuggling close to the G7 and getting treated like a stray dog. Maybe real skinning or bleaching might do the trick.