Source: Global Times Published: 2020-06-25
India is reportedly putting some containers from China on hold during clearance for all-round inspection and scrutiny amid the recent stand-off between the two nations, following a fatal border clash. It is a stupid choice which will backfire and hurt global industrial chains, a Chinese expert said.
Boycott campaigns of some Indian residents may still be understandable to express anger, while it is a foolish move for the country to play such tricks to obstruct cross-border logistics, as they will hinder the operations of India-based firms and their investment environment, Long Xingchun, the director of the Center for Indian Studies at China West Normal University, told the Global Times on Thursday.
Reuters reported that Apple, Dell and Cisco products were also in the containers and have been held up in ports, as well as pharmaceutical consignments, which rely heavily on Chinese supplies.
Indian officials claimed that the move was not related to the recent border tensions, media reported.
Hard hit by the coronavirus, the Indian economy is having a hard time trying to recover from months of lockdowns, and a prolonged shipment of Chinese raw materials and parts is self-destruction, Long noted.
India-based US firms have already felt the impact of the availability of components usually shipped from their facilities in China, and have reached out to the Indian government for help, Indian Express reported on Thursday.
Chinese firms are only part of global value chains. The containers facing prolonged scrutiny broke an industrial chain which may include Japanese or US suppliers in the upstream and India-based manufacturers in the downstream, Long said.
For instance, Apple’s factory in India depends on components and parts from China, Long noted.
The latest commander-level bilateral talks have eased tensions between the two countries, and India, after a deadly provocation, realized it was not wise for the country, Long said. He thinks the scenario will not last long due to India’s huge economic costs.
Long Xingchun is a visiting research fellow with the Chongyang Institute for Financial Studies of Renmin University of China.