The ‘Boycott China’ campaign started in the country after the skirmish between Indo-China troops in eastern Ladakh has started showing effect. Now China itself has admitted that it will suffer a lot of damage and trade with India could be reduced by 30 to 50% this year. Since that trade with India is profitable (more exports to India, less imports), China will suffer big loss due to less trade.
The Communist Party of China mouthpiece Global Times wrote, “The growing nationalism in India against China has had an impact on economic issues. If combined with Kovid-19, the island trade will be reduced by 30% this year and the decline may be up to 50%.
In a Global Times article, Dye Yonghong, director of Shenzhen University’s Institute of Bay of Bengal Studies, wrote, “Nationalism is being promoted by some politicians and media after violent clashes between India-China troops along the border is. In addition to the boycott of Chinese goods, cargo checks have been extended at the country’s ports. Investigations on foreign investment were increased to prevent takeover by Chinese companies before the clash. ”
The article also said that India and China have developed strong relationships over the years. In auto manufacturing, telecommunications and pharmaceutical sectors, both sides are benefiting. Many Indian industries cannot afford Boycott China. It will take a long time for India to find an alternative and a lot of effort will be required. New industries will have to be set up or investment from other countries will have to be brought. The article has hoped that the economic relations will return to normal on the border with peace.