What we need to consider before we Boycott China

 

In the last few years, we have developed this tendency of blaming our neighbouring countries for our problems. The TV media must take a huge responsibility for that.  

So, when Sonam Wangchuk posted a video about boycotting Chinese products, I took notice. Having met him in person and spoken to him about his view on India’s education system, I was keen on understanding what his views were. What he said made sense at face value, we have witnessed a similar Swadeshi movement in the past and it worked. We as a country boycotted British goods during the independence struggle and it did dent their vault. But, is it possible now? 

Let’s first begin with TikTok 

The entire ban TikTok wave that took over the internet last month was due to a roast video and a response to Carry Minati’s YouTube video being taken down. The intentional low ratings on Google Play store and the bid to uninstall the app stemmed from this video being taken down and was far from waging a war against China’s economy. (All these YouTubers and Viewers are still happily consuming TikTok, even if it is under the garb of watching it to roast later) 

According to a report by Entrackr TikTok earned revenue of ₹23-25 crore in the last quarter, which ended on December 31, 2019. It is now targeting to earn ₹100 crore. (Link) 

While India does hold the largest share download wise, we are also giving much more to other Social Media platforms like Facebook. Facebook witnessed a 71 per cent growth in Indian markets with ₹892 cr revenue in financial year 2018-2019. 

To give you a perspective, India’s digital ad market is around ₹17,000 crore, which is dominated by Google and Facebook. (Link) 

So, in comparison, TikTok still holds a very small share.  

Now that we have TikTok out of the way, let’s talk about actually boycotting Chinese Products 

In 2019, Chinese imports alone accounted for 34 per cent of all the foreign value-added in India’s exports, data from the United Nations Conference on Trade and Development (UNCTAD) shows. (Link) 

Here’s what Live Mint has to say, 

India is a large market for Chinese goods, accounting for 3% of China’s exports and adding up to $75 billion in 2019. But here’s the thing: India’s $17 billion of exports to China account for a much-higher 5.3% of our total exports. Any trade war with China would hurt India, too. (Link) 

The Government too is aware of China’s aggressive nature and thus last month mandated approval for foreign direct investment (FDI) from countries with which it shares land borders. The curbs aimed to shield Indian companies from predatory investments, particularly those from China—a big hint that policymakers in New Delhi have become ever more cautious of Beijing’s growing role in the Indian economy. 

This is a good thing considering how China has grown over the years in Asia and the sort of economic debt colonies it is subtly building across the globe. 

Simply speaking, if we are going to boycott their products, they may just do the same for our products.  

Of course, making products in India is the ideal situation, but it needs to be gradual and in a proper manner. We need to ensure that we are able to sustain the boycott and manufacture all the products in the country. If this isn't planned well, we may face shortage of products and that may hamper our economy, job market and even essential services.  

Since we are making things now, let’s also take a look at what happened to our Make in India project, which is now rehashed into Atmanirbhar 

Make in India was introduced to facilitate Indian industries and encourage the start-up culture to make India investment friendly. But according to Business Line Chinese investors have major stakes in 18 out of India’s top 30 unicorns. A report by foreign policy think tank ‘Gateway House: Indian Council on Global Relations,’ has estimated China linked investments in India’s tech start-up sector alone at $4 billion. 

‘The ease of business’ that most people use loosely in everyday conversations also shows that China has a better ranking than India, India stands at the 63rd rank while China’s rank is 31st. Although I should clarify that India did improve its rank from being 77th previous year to 63rd now.