{"id":52076,"date":"2019-09-11T14:29:28","date_gmt":"2019-09-11T08:59:28","guid":{"rendered":"https:\/\/blogadmin.forumias.com\/?page_id=52076"},"modified":"2019-09-11T14:29:42","modified_gmt":"2019-09-11T08:59:42","slug":"answered-discuss-how-china-usa-trade-rivalry-is-not-good-for-global-economic-growth-especially-indias-growth","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/answered-discuss-how-china-usa-trade-rivalry-is-not-good-for-global-economic-growth-especially-indias-growth\/","title":{"rendered":"[Answered] Discuss how China-USA trade rivalry is not good for global economic growth especially India\u2019s growth?"},"content":{"rendered":"\n
Demand of the question<\/strong>
Introduction.<\/strong> Contextual Introduction.
Body. <\/strong>How US-China rivalry not good for economic growth of world and India? How should India balance?
Conclusion. <\/strong>Way forward. <\/td><\/tr><\/tbody><\/table>\n\n\n\n

The rivalry between the world\u2019s principal global power, the United States, and its rising challenger, China, is now out in the open and is likely to deepen. Strategic competition has intensified in the past two years to cover trade, technology, naval activities in the South China Sea, and diplomacy. Domestic opinion in both countries have hardened, and there is little sign that differences would be mitigated soon. This has enormous strategic implications for all, including India.<\/p>\n\n\n\n

How US-China rivalry not good for\neconomic growth of world and India?<\/strong><\/p>\n\n\n\n

  1. Relocation of Companies: <\/strong>US tariffs are likely to induce\nforeign-invested companies to relocate from China. Vast majority of China\u2019s\nexports are still accounted for by foreign-invested companies. This would hurt\nmanufacturing and would hurt economic growth.<\/li>
  2. Reduced Capital flows: <\/strong>Due to China US rivalry, economies\nwill go for Protectionist measures that will impact overall capital flows.<\/li>
  3. Weakening of rupee: <\/strong>The rupee will be weaken more due to\ndecreased capital flows. This will make imports costly and will put strain on\nIndian purse.<\/li>
  4. Economic growth:<\/strong> Current global economic order will\nbe dismantled. Thus could impact India\u2019s exports and imports impacting its\neconomic growth.<\/li>
  5. Inflation: <\/strong>This would reduce supply of finished\ngoods and raw material which will increase the general price for the consumer.\nThis would lead to inflation. Moreover, the burden of increased tax from the\nduties will also be borne by the final user.<\/li>
  6. Stock markets:<\/strong> Share market will go down as seen\nrecently through drop in stock markets, due to the cautious approach of the\ninvestors. Also flow of foreign investment may be reduced.<\/li><\/ol>\n\n\n\n

    How India should approach US and\nChina?<\/strong><\/p>\n\n\n\n

    1. India should develop a balanced\nforeign policy outlook for both the nations focussing on its economic growth\nand development.<\/li>
    2. India should push US on visa reforms\nand on increasing foreign investment in India.<\/li>
    3. Strategic defence deals at lower\nprice should be pushed using India\u2019s increased strategic significance in the\nregion.<\/li>
    4. India should exploit this\nopportunity to emerge as new manufacturing hub by pushing US companies through\nbetter and easy regulations supported by labour reforms.<\/li>
    5. India should focus on the US market\nfor items in the categories of machinery, electrical equipment, vehicles and\ntransport parts, chemicals, plastics and rubber products. The supply chains in\nChina for all these products are likely to shift to other economies.<\/li>
    6. India should correct its negative\nbalance of trade with China through increased exports of pharmaceuticals and\nagricultural products to China, as the situation presents right time for India\nto further its cause.<\/li>
    7. India can focus on numerous goods\nfor expanding its exports to the US and China markets following the hike in\nduties by both countries on imports from each other.<\/li>
    8. Foreign direct investments from the\nUS and China should be encouraged by boosting confidence of firms in India\u2019s\nbusiness climate. In the domestic industry, it is important for India to\nenhance productivity while adding technology to its domestic production in the\nidentified products.<\/li><\/ol>\n\n\n\n

      India is a major emerging power in the world. With present US-China rivalry it should not miss an opportunity to further its Make in India initiative and emerge as an export hub. What is needed is proper policy push and reforms in indian market.<\/p>\n","protected":false},"excerpt":{"rendered":"

      Demand of the question Introduction. Contextual Introduction. Body. How US-China rivalry not good for economic growth of world and India? How should India balance? Conclusion. Way forward. The rivalry between the world\u2019s principal global power, the United States, and its rising challenger, China, is now out in the open and is likely to deepen. Strategic… Continue reading [Answered] Discuss how China-USA trade rivalry is not good for global economic growth especially India\u2019s growth?<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":49132,"parent":0,"menu_order":0,"comment_status":"open","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-52076","page","type-page","status-publish","has-post-thumbnail","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/52076","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=52076"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/52076\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/49132"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=52076"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}