China warns of impact on India-bound investments from boycott

NEW DELHI (INDIA): Amid calls from some quarters for boycott of Chinese goods in ongoing Diwali season, China today said any such move will negatively impact the India-bound investments from its enterprises and also the bilateral cooperation between the two countries.nnChina also asserted that any such boycott would not have much impact on its exports, but “without proper substitutes, the biggest losers of the boycott of Chinese goods will be Indian traders and consumers”.nnIn a statement issued here, the Chinese embassy said China is the world’s largest trading nation in goods, with its exports in 2015 amounted to USD 2276.5 billion.nn”The exports to India accounted for only 2 per cent of China’s total exports and India’s boycott of Chinese goods will not have much impact on China’s exports.nn”China is more concerned that the boycott will negatively affect Chinese enterprises to invest in India and the bilateral cooperation, which both Chinese and Indian people are not willing to see.”nnAmid rising tension in Indo-Pak ties, there have been calls from some fringe entities, including through social media platforms, about boycott of Chinese goods to protest against China’s support to Pakistan.nnApex traders body CAIT (Confederation of All India Traders) recently said the sale of Chinese products may decline by 30 per cent this Diwali.nnIndia is a big market for Chinese products and over the years import of toys, furniture, building hardware, crackers, lighting and electric fittings, furnishing fabric, office stationary, electronic appliances, consumer electronics, kitchen equipment & appliances, gift items, watches etc from China has increased to a great extent.nnChinese products are generally low-priced which is the root cause of infiltration of Chinese goods in the Indian market, CAIT had said.nnIn its statement, Chinese embassy referred to reports that local sellers in Sadar Bazaar, the largest wholesale market of household items in India, have complained about their Chinese goods sale dropping by at least 20 per cent.nn”The boycott effect will not limit to Diwali related products, but extended to other Chinese products that are not related to the festival. In the long-run, boycott will not only hurt Chinese goods sale, but also cause negative effects to consumers in India,” it said.nnSource: Press Trust of India