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Piyush Goyal, Minister of Commerce and Industry
| Photo Credit:
ANI
The current economic turbulences faced by the world are not built overnight but a culmination of long-term unfair trade practices by China over the years.
Piyush Goyal, Minister of Commerce and Industry said the starting point of the economic turbulence was when China was admitted as a member of WTO.
Every country accepted China’s membership to the WTO and believed that it will transform the way it does business. The world expected China to bring transparency and adopt fair trade practices, he said at the India Global Forum held here on Monday.
A large part of the world was carried away by China’s low-cost production and opened their doors without gauging its long-term impact, he added.
Untransparent trade practices
In the entire process, China’s economy boomed and it emerged as the second largest economy which was fuelled by untransparent trade practices, said Goyal.
China adopted predatory pricing and a huge subsidiary to capture the market in different parts of the world. In this process, they finished off the thriving domestic business of various countries, he said.
India needs to get confidence in the fair trade practices of China before strengthening trade ties with that country.
The Chinese economy is heavily subsidised and prices of certain products are crashed just to capture the market for a particular product in a specific country, said Goyal.
India’s trade deficit with China was at a comfortable level till Vajpayee was the Prime Minister but it ballooned the following 10 years when the UPA Government signed an agreement with China, said Goyal.
On the tariff levied by the US, he said the applied tariff rate on the US is only 7-8 per cent and it is projected as 17 per cent because it is high on certain products which India does not import.
The levy of lower tariffs has nothing to do with relationships with the US. The tariff war based on a certain formula. In fact, India is friendly with all the countries which adopt fair trade practices, he added.
Businesses may turn more turbulent and corporate India should learn to change every challenge into an opportunity like they did during the Y2k problem in 1999 and Covid, he said.
Corporates should ensure the viability of its downstream player and should not short change for cost benefit, he said.
If they do that today, they will face the same fate when their upstream business cannot change them, he said.
India is ready to join hands with countries that adopt fair trade practices with mutual respect, said Goyal.
On opening doors for BYD just like Tesla, Goyal said the company should first convince India that it will play by the book and not use the country to dump its products.
Published on April 7, 2025
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