India’s trade measures imposes punitive duties on Chinese imports

The move follows New Delhi’s expression of concern regarding the expanding trade deficit with Beijing, adding another layer of complexity to the strained bilateral relationship.

India has intensified its trade measures against China by imposing punitive duties on Chinese industrial laser machinery this month, contributing to a series of anti-dumping investigations by the Government targeting products manufactured in China. The move follows New Delhi’s expression of concern regarding the expanding trade deficit with Beijing, adding another layer of complexity to the strained bilateral relationship.

The India-China bilateral relationship is marked by a complex interplay of economic collaboration, historical intricacies, and persistent territorial disputes. While both nations share a long history of cultural ties and have seen substantial growth in economic exchanges, especially in trade, the unresolved border issue remains a persistent source of tension.

Earlier this month, India revealed its decision to impose anti-dumping duties, ranging up to 147.2%, on Chinese industrial laser machinery for five years. This development comes against the backdrop of the ongoing border dispute in the Himalayan region and India’s growing prominence in the containment strategy implemented by the United States to counter China.

The punitive measures signify a tougher stance by India on various Chinese imports, reflecting broader geopolitical dynamics. However, analysts suggest that despite the escalating trade measures, it is unlikely to escalate into a full-fledged trade war between the two nations.

The imposition of duties on Chinese industrial laser machinery is part of India’s response to perceived unfair trade practices. Such moves aim to protect domestic industries from what is perceived as artificially low prices of imported goods, in this case, industrial laser machinery from China.

China, in response, has exhibited measured reactions to India’s trade actions. This strategic approach might be influenced by the larger geopolitical context, which involves not only economic considerations but also factors like the border dispute and the evolving dynamics in the region. The imposition of punitive duties adds an economic dimension to the existing complexities.