World Politics

US China Trade War: Impact on the Indian Market. 5/5 (1)

US China

US China Trade War: Since March last year, after President Donald Trump slapped excessive high tariffs on Chinese exports. Extreme tensions built up between the two major economies of the world. Chinese retaliated with the same intensity. US demanded that china must reduce its $375 billion trade deficit and allow equal imports of American goods to their markets

China said it will impose higher tariffs on the $60 billion of US goods from June 1.

Impact on the Global Economic Trade.

This ongoing heads-on between these two large economies is fuelling tensions for the Global economic trade. The International Monitory Fund, an organisation of 189 countries that fosters global monitory cooperation and facilitates global trade. Aims at reducing unemployment all over the world. In a report the organisation states that the US-China trade tensions is one factor that contribute to the significant weakening of the Global Economy.

The IMF chief, Christine Legarde said that Fresh trade tension between the two countries is a threat to the global economy.

How Is India Impacted.

India is one of the economies in the world that stands the most privileged because of the tension growing between the US and China. The UN acknowledged the same. A golden opportunity is in vision as this trade tension might bring a significant shift of manufacturing sector in the country. Although an equal threat is predicted if the trade tension remains persistent.

The increment of the tariffs to the Chinese good in US can also be a gateway for the Indian exporters to try a hand in the US markets.

More Chinese Investments to India: Lei Jun, Chief of Xiaomi.

Xiaomi, the fastest growing tech company from china who owns a huge market in India. So, the company will be increasing its investments in India. Also, the company aims at bringing new products to the Indian market. These includes refrigerators, water purifiers, ACs and even Electric vehicles. The chief of Xiaomi, the Steve jobs of China, Lei Jun said that the increased tension between the two large economies  could see an extravagant opportunity of Chinese Investments shifting to India.

Apple Investments.

The Chinese legacy of the assembly of the App Inc. production will be lost. Apple will soon be starting a mass production of the iPhones in India. Reported by the Terry Gou, Chairman of the Foxconn Technology group. Bangalore, has had a production house for the older IPhones but in the coming years this will be expanded largely.

Hovering stock markets.

Stocks all around the world have hovered to near two months low. Indian markets experiencing the same. Although many believe that the dip in the Indian stock market is due to the awaiting results of the 2019 elections. Once the results announced, on 23rd May. Equity indices expected to roll back.

In conclusion, do you think they will come to an agreement? Also, do write your comments below.

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