Shiv Kumar 9896768182

CONTENTS  Introduction  Chinese product in India  Dumping of chinese product on indian economy  Unfair trade practices from china  Route used by china to imports goods in India Impact of Chinese products on retail market   Indian govt. banned Chinese mobile  Unbalance trade between India and china  Suggestion to consumers .

China's per capita GDP growth has averaged 8 per cent in the 25 years since 1980. But china’s aim is only limited to profit maximization. Exporting of maximum products is a source of revenue. China’s share of manufacturing in GDP to nearly 40 per cent. words like customer satisfaction and quality has no meaning for them.INTRODUCTION China one of the developing nation of the world. which is to become a world’s most strong nation and for that they are using unfair trade practices all over the world. It is well known in the world for its products. Economy of china is mainly dependent on its exports. employment generation for their economy. Which is no doubt good for an emerging economy. It has only one goal. . It is exporting products to many nations with a view to accelerate its economy.

fashion accessories like slippers. idols. Decorative items. torch. SOME OF THE PRODUCTS WHICH ARE IN INDIAN MARKET ARE mobile phones  furniture items  crackers  electronic items  leather products  jewelries  decorating items  kitchen products  toys  bath tubs  garments  milk products . Chinese electronic goods like radio. etc.Chinese products in Indian marketsWith the world turning into a global village and competition getting stiff. hand bags. etc. receive huge responses during festive seasons. Chinese products like electronics. one saw the flooding of the Indian markets with Chinese made idols which were welcomed with open arms by the Indian consumers. are reigning supreme in the Indian market. apparels. India is the hub of diverse business opportunities. This year. china is using the Indian market for its benefit. crackers. DVD players. and slowly yet steadily. countries like China are ruling the roost in many a market in varied spheres. jewelries. etc. are predominating similar Indian products.

the major trade and industry chambers opposed severely this dumping of cheap goods. the Government has quickly initiated antidumping investigations against three Chinese products -toys. A That the import caused material injury to and dampened the prospects of domestic industry. before they are sold in India. Recently. sold at Rs 2 a unit while those manufactured in India cost Rs 7. . Often the lack of evidence at any one of these stages results in dismissal of an anti-dumping case. sport goods and batteries -. prices and other such details.and made it mandatory for 131 imported products to strictly follow the BIS specifications and packing instructions including the printer's name.a price at which no Indian toy company can afford to sell. cameras DUMPING OF CHINESE PRODUCTS AND ITS IMPACT ON SMALL SCALE INDUSTRYTHE dumping into India of cheap goods from China has raised the fear that the country's small-scale industry might be on the verge of collapse. But can these non-tariff barriers (NTBs) provide effective protection to the domestic industry in the long run? It is difficult to impose anti-dumping duties on such goods. To prove dumping. the Directorate of Anti-Dumping has to establish evidence mainly on these counts: A That the imports have been made below the normal value. And succumbing to this pressure. A survey reveals a frightening challenge by low-priced Chinese goods such as batteries. A Chinese battery-operated musical doll costs Rs 150 -.

the life of a Chinese battery is not even half that of an Indian battery. prefer such batteries in the long run. For instance. even if they are cheap? Also. Once the regular trade flows. particularly the small-scale sector. the share of Chinese goods in India's global import did not exceed 2. these NTBs fail to pose any major hindrances to the foreign exporters. is crying hoarse. then. The . Only the sections that did not gear themselves up for the competition the removal of quantitative restrictions signified. cheap imports do not significantly impact the overall domestic industry. the mandatory obligations imposed by the Government on the import of 131 products are only teething troubles for the foreign exporters. China imports threatens Indian embroidery artist "Chikan embroidered clothes are a specialty on Eid. long shirt-like garments called kurtas. Apart from a few industries reserved for the small-scale sector.Also. slippers.6 per cent during April-July 2000. their long-term penetration is not sure as the Indian consumer has also become qualityconscious." That following usually draws huge holiday crowds to the Aminabad market in Old Lucknow for bangles. post-liberalisation. and especially chikan. though Chinese goods have edged out the desi products mainly because of price competition. these measures are simply to pacify the lead chambers clamouring for putting in place the NTBs for the sake of some members. Even when their goods posed a threat. Will the consumer. Further. Surging of imports from china has dampened the fate of the domestic industry. Therefore. Merely three per cent of its import is from China. the cheap imports from China have an almost invisible impact on India's overall import.

Some upscale shopkeepers even sell Chinese products as local embroidery to tourists." The result. "whereas a Chinese chikan cloth is available for as less as 40 rupees (80 cents) a meter. a chikan maker. who work as a day laborers.This year. is that many of them are losing their jobs and have nowhere to go to. when the labor-intensive stitching on cotton cloth was especially made for local dignitaries. chikan producers said. the excitement was lacking. because of its clean finish. depending on the density of the embroidery. but the embroidery is done by machines." said shopkeeper Basheer Ahmed. "Once exclusively worn by Nawabs."Earlier. "People prefer to buy Chinese chikan product as it is cheap and the machine embroidery is smoother than handembroidered local cloth. the chikan was brought to the common masses by us. however. is often preferred by foreign tourists. China has inundated Indian markets with imitations that look like the local chikan. . And now it is us who are being ousted out of this profession by some cheap cross-border product." The decrease in sales is taking its toll on the chikan kaarigars (embroiderers)." said Rashid. The Chinese chikan work.embroidery traces its roots to the Nawab era of Lucknow. a handembroidered kurta would fetch them 100 rupees ($2).

according to sources in the commerce ministry. Ivory Coast and West Africa — in general. Commerce ministry sources said: ``We have had many complaints about such fake drugs from China being offloaded as Indian drugs in countries like Ghana. It not only dents our image and takes our legitimate market share. it is unlikely to be an isolated incident. India's High Commissioner in the Nigerian capital of Abuja. New Delhi has registered ``strong protest'' with the Chinese mission and China's foreign trade ministry. South Africa.UNFAIR TRADE PRACTICES OF CHINA AGAINST INDIAThe National Agency for Food and Drug Administration and Control (NAFDAC) of Nigeria issued a press release stating that a large consignment of fake anti-malarial generic pharmaceuticals labelled `Made in India' were. in fact.'' His letter went on to say: ``Fake foreign-made generics carrying `Made in India' label can do tremendous harm to our interests. This is the first time that such a large international consignment has been seized and this will be taken up strongly with the Chinese side. Indeed there is no reason for Nigeria to be the only country to be receiving such consignments. alerting him to the large seizure: ``While this is a case of a Chinese company exporting fake `Made in India' labelled medicines which has been accidentally exposed. Mahesh Sachdev. it also erodes the distinction between generic and fake medicines that we have been campaigning for at WHO and WTO''.. had earlier written to then commerce secretary GSK Pillai. where India has a substantial market share.'' . found to have been produced in China.

From electronic products like iPods and DVD players to warm clothes. Here we can get good looking branded stuff for less price. ." said Kamal a customer.. They are very popular with people who wish to buy fake versions of their favorite brands at throwaway prices. "I have come to Gorakhpur for shopping. Low prices and attractive packaging are the major reasons behind the growing popularity of Chinese goods in India. Custom duty officers not inspecting the luggage of the tourists properly and local people helping smugglers in greed for money are the reasons that drive smuggling the most in this area. ROUTE USED BY CHINESE AREChina is allegedly using the traditional Indo-Nepal trade route to dump its low cost and less durable consumer goods in India [ Images ]. "Apart from shoes. Chinese products have a huge demand in the Indian market." he added. I am aware that the products available here are made in China but the look is so good that I want to buy them. I know that the life expectancy of Chinese products is low but I buy them as they fulfill my desire of owning a branded product. They even use the improper routes leading to India in order to avoid the custom duty officers located at the borders. Both local people and tourists flock to these borders to buy the desired products at lower prices. items like warm clothes. electronic items like digital video players and I-pod etc are available here at cheap prices. porous borders like Soloni have become the hub for cheap Chinese goods. Smugglers take advantage of the easily accessible Indian-Nepal border to smuggle Chinese goods and products to India.

thus creating huge losses for the nation on the whole. The individuals who know this fact often misuse it. India needs to take the initiative and start promoting Indian manufacturing. as with the increase in foreign products the consumption of homemade products would lower. consumer electronics. But the million-dollar question is: Why would Indians go to China if Indian manufacturers can give them the same or better product quality. the lack of it) of Indian manufacturing. more variety and price? . much safer. home decor items. If experts are to be believed. particularly in categories such as toys. Some people come in large groups of 8 to 10 people and while traveling in public transports they divide the goods among themselves with each person carrying two goods each and thus they make it difficult for officials to detect whether the goods carried are meant for personal use or for smuggling purpose. According to sources. in a global economy. in few situations." he added.000 each time he comes to India from Nepal." "Smuggling of Chinese goods is a bane for India. it is inevitable that Indian products will find markets abroad and foreign goods will be sold in India. Notwithstanding the lead paint scare in the US from Chinese made goods. almost all organized retailers are reporting a growth in Chinese imports. IMPACT OF CHINESE PRODUCTS ON RETAIL Retail shelves are becoming showcases of the competitiveness (or. and stationery. It has come into the notice of The India Street that bigger sections of these shelves are getting filled by products from China.According to Gorakhpur's custom officer. This illegal act is dampening the Indian market. Satpal Yadav: "An individual is allowed to carry personal consumption goods worth Rs 25. luggage. appliances.

cannot be imported from now on. Chinese products are winning only in categories where Indian industry has failed to provide top quality products at competitive prices. It's a good possibility that in the next two or three years. An estimated eight lakh such phones come into the country every month from China. India needs to step up and start promoting India products as a sfaer alternative to China. In theory. not the shoddy ones. bans import of Chinese mobiles. they are finding their own strengths.There are some experts who are of the opinion that competitive products from China and other countries are benefiting Indian consumers and therefore India Inc. Security agencies had raised concern over the use of these phones. were being used by terrorists to set off . they are preparing to give a fitting response to imported goods. some Indian industries will succumb to competition from imported goods. many of which. or they will get edged out of their home market in few product categor Indian Govt. they said. but large chunk of Indian manufacturers will pull up their socks and compete hard. toys The Directorate-General of Foreign Trade said mobile handsets without the IMEI (International Mobile Equipment Identity) number. In addition. should have no objection to it. dairy products. one can safely say that Indian manufacturers will have to shape up. As a matter of fact. which helps authorities to track the sale and use of the phones. These are unbranded and cost a lot less than the branded variety. No one will argue with the fact that organized retail has started a process of discovery for Indian manufacturers. All in all. It is worth mentioning in this regard that Chinese consumer electronics are not selling in India. Point to be noted here is that only top quality Chinese products are gaining market share in India.

Indian Finance Minister Pranab Mukherjee. UNBALANCE TRADE BETWEEN INDIA AND CHINA Indians. identified an expansionist China as one of India's top challenges. including Nepal. then its foreign minister. . the authorities find it difficult to track the sale or usage. bristle over the flood of Chinese imports and China's increasingly cozy ties with India's neighbors.bombs and communicate among themselves. In a speech last November. for their part. Approximately 30 million such phones are in use at present. Since these sets do not have the 15-digit IMEI number. Sri Lanka and arch-rival Pakistan. or cloned numbers.

in both organised and unorganised sectors. China herself is one of the victims of the counterfeit products they produce. Even though the majority of these products did not succeed in the Indian market due to their 'inferior' quality. The dumping of Chinese-made fans. fake and lowquality medicines produced in China killed about 192. make sure that you are not buying a product 'Made In China'.Everytime You Buy A Product. batteries etc is slowly replacing our own products and has become a threat to Indian industry. pharmaceutical. the Chinese 'invasion' of our market is still continuing. locks. Some companies have adopted the next best line of action by joining the enemy. food.. pushing them to the brink of starvation. In the last few years. China's steady entry into our textile. Products Made in Forced Labour Camps 2.000 people. bicycles. The Indian toy industry has been more or less wiped out due to the dumping of cheap Chinese toys produced mainly by the Chinese Military Industrial Complex of the People's Liberation Army (PLA). Many may wonder why one should not buy an affordable and attractive Chinese product which is easily available in any Indian shop. information-technology. many manufacturing units in India have been closed down due to this competition. This has resulted in unemployment for lakhs of workers. automobile and other sectors may result in the collapse of many Indian industries -. radios. watches. The reasons are many: 'One-hour technology' products from China started entering Indian households some years ago.. Many Indian companies have already shifted their production bases from small Indian towns and villages to China. in the year 2001. Products Manufactured by the . 'Made In China' can be classified into three categories: 1.

' because it does not contaminate the prisoners' organs with poisonous chemicals. Take a pledge that you will not buy. . use or sell any product 'Made In China'. the New York police busted a racket of some senior Chinese officials involved in the sale of the organs of executed prisoners for transplantation. Spread the word. Products Manufactured by the Disenfranchised Labour Force. party leaders and cadres own over 95% of the Chinese economy (directly or through a variety of proxies). Business is everything! In 1998. It is also a well-known fact that the ironically named People's Liberation Army (PLA). Remember that every time you buy a product 'Made In China. China tops the world with more than 2.' you are funding and empowering a brutal regime.300 executions per year. This includes a big majority of 'political' prisoners. Most of the executions take place in front of crowds inside sports stadiums or public squares in the most preferred way -.'a bullet to the back of the head. We request you to boycott Chinese goods to save and protect the Indian industry and also to help end injustice and oppression in Tibet. It is estimated that more than one crore people work in thousands of forced labour camps across China. as lethal injections do.Chinese Military 3.