China's plan to shift their production to India..!?

US President donald trump imposed a minimum of 10 percent on all countries exporting to the US a few days ago, and trump imposed additional taxes on about 60 countries that have huge trade imbalances with the US. In particular, he imposed a 54 percent tax on Chinese goods. Trump's tax will have a huge impact on China. Chinese electronics brands such as Haier, Lenovo, Motorola, Oppo, Vivo, and TCL have operations in the US. However, most of their products are sourced from their factories in china and vietnam or from contract manufacturers. However, if Trump's additional taxes come into effect, it will no longer be profitable for them. As a result, Chinese electronics companies are thinking about shifting their production to india and exporting their products to the US. Because the tax on indian products is less than half the tax on Chinese products. The US has imposed a 26 percent tax on indian products.
For example, Haier is exploring the possibility of importing its products sold in the US from india instead of China. Its factories in Greater noida and pune will be used to set up new assembly lines for air conditioners, microwave ovens, and other home appliances sold in the US under the GE brand. However, although this idea of Chinese companies is good, Chinese companies have problems implementing it.
It is mandatory to obtain the approval of the central government for any foreign direct investment from any country, including china, which shares a land border with India. Since the bilateral (India-China) relations deteriorated sharply after the border conflict in 2020, it has become difficult for Chinese companies to get permission from the indian government for their investment projects. This has now caused great concern for Chinese companies. Meanwhile, an indian CEO of a leading Chinese electronics brand said that if the central government relaxes foreign direct investment permits for Chinese companies in the current situation, it will be a major change in indian electronics manufacturing and exports.
For more interesting updates wa click and follow Indiaherald WhatsApp channel

Find out more:

Sowmiya Sriram

07/04/2025 01:57 PM