Boycott China: A New Journey

For the past 8-9 months, China has regularly been in news not only in India but throughout the world. New coronavirus has affected people globally. Due to this death ratio has sky-rocketed in many countries. Which induced people to Boycott China.

In such a situation when people got to know that the virus was originated in China, and adding onto that, the Chinese government failed to promise transparency on its role in the spread of this virus, many countries cried foul.

Its effect was shown immediately in India. Therefore, people started to boycott china in respective to buying Chinese products and deleting China-made mobile applications, thinking it will affect the country financially.

chinatownImageBoycottChina-BusinessWisdomToday

And in addition to it, after the land dispute between the two nations, to boycott china has become a sensation.

But is it enough to become “Atmanirbhar “?

Investments in Indian start-ups

Over the last 5 years, China has made investments worth trillions of dollars in India. 18 out of India’s 30 unicorn start-ups are funded by Chinese companies.

China is funding famous Indian brands for example like, Paytm, Walmart, MakeMyTrip, Swiggy, Snapdeal, Policy Bazar, Zomato, and others.

So, as a counter protective measure, India recently changed its FDI policy by banning its neighboring countries to invest in our companies by automatic routes.

In other words, now opportunistic countries like China will not be able to invest in Indian start-ups, without the interference of the Indian government.

But the companies which have already been invested in by China will give a good return.

China recycles garbage into new products

Recycling is a good practice, isn’t it?

China is purchasing garbage from all over the world and recycling it to manufacture new products. Therefore, this reduces the cost per product as less new parts are required to manufacture.

China replicates other products

China is known for copying other products and manufacturing their own product with the latest technology. This helped China to reduce the research and development cost, which as an effect reduces the overall cost of a product. For example, you might have heard about Rolls Royce, but do you know about Emgrand? 

Rolls Royce phantom image. BoycottChina-BusinessWisdomToday
‘Original’ Rolls Royce Phantom

Rolls Royce is a luxury car manufacturer which is well-known around the globe for quality and luxury.

For example, check out this car, it’s the Rolls Royce Phantom which comes with a price tag of $ 450,000 in the United States.

Geely GE

And this is the Emgrand GE (formerly known as Geely GE), which is as you can see, is an exact replica of the Rolls Royce Phantom, which starts from only $ 31,000.

BMW X1 image. boycott china
BMW X1

Another car, Brilliance V5, which is a replica of the BMW X1.

Brilliance V5 – replica of BMW X1

Read more about this here.

No Alternatives

Explaining the rationale behind the imports from China, Maruti Suzuki India’s Chairman R.C. Bhargava said that the reason is “either the product is not made in India, not available or what is made in India does not provide the desired quality, or the product made in India is too expensive”.

In 2018-19, India imported auto components worth USD 17.6 billion, of which 27 percent – USD 4.75 billion – were from China.

There is no denying that the country needs to be ‘Atma-Nirbhar’ and the industry and the government should together define a roadmap and deliver accordingly.

Imports from China can be avoided only if we find an alternative for the products made there that too at a low price. If not, to Boycott China will not be effortless.

Lower Wages

China has a population of 1,427,647,786 (as per 2018), which makes it the most populous country in the world, So, it does not lack manpower. According to the law of demand and supply, prices fall when demand being the same, and supply rises, which works out to a simple statement that labor cost is low, very low in China. Lower wage rates allow the manufacturers to manufacture a product at a low price, which eventually will lead to a lower selling price.

Low compliance to laws

Everyone knows why a manufacturing unit should not employ children. A company has to follow a set of guidelines and laws while their operations.

Talking about Chinese manufacturers, they do not comply with these kinds of laws. Exploiting employees is such a practice which is being followed in China for a long time, however, things are changing now. Read this  

https://www.investopedia.com/articles/investing/120114/understanding-Chinas-one-child-policy.asp?rp=i


With China generating a lot of revenue from all over the world, let’s look at some of the very common Chinese products which we are using extensively in our day-to-day life –

  1. Electrical Machinery
  2. Organic Chemicals
  3. Plastics and related items
  4. Glass products
  5. Smartphones (Xiaomi, Lenovo, Vivo, Oppo, OnePlus, Gionee, Huawei, etc.)

China made mobile applications that people are using across the world. These are as follows –

  1. 360 Security
  2. DU Battery Saver
  3. Clash of Kings
  4. LIKEE
  5. TikTok
  6. PUBG
  7. WeChat
  8. UC Browser
  9. Parallel Space
  10. Xender
  11. ShareIt
  12. VivaVideo
  13. Bigo Live
  14. ES File Explorer
  15. SHEIN

Digital products are easier to sell and manage (mobile applications in this case). One can create a mobile application and manage it from anywhere in the world, provided you have a desktop or a laptop available.

The number of mobile applications developed in China is dramatically increasing. These applications are spreading all over the world, especially TikTok and PUBG, where TikTok has become the most famous entertainment application and PUBG has become the most famous game in the whole world.

LATEST UPDATE

This can cause a great impact on jobs as some of these services had offices in India. Some of the people were fully dependent on this.

The Indian government has banned 59 Chinese made mobile applications. As, it could use data from these applications, against India.

This decision to Boycott china might affect people now, but it will serve the greater good in long term.

Govt. Tweets, Banning 59 Chinese apps. boycott china-BusinessWisdomToday
List of the chinese apps which were Banned. boycott china-BusinessWisdomToday

Why should we ban Chinese products?

Coming onto the point, why should we boycott china? Well, there are a lot of factors to consider. First of all, us purchasing or using Chinese goods and services has pumped up the Chinese GDP, as a result, we have supported the country financially.

When we buy any product which is manufactured in China, we are paying the Chinese manufacturers, which increases the income of the manufacturer, then the money goes into the whole Chinese economy, and therefore the economy grows.

What would be the effect?

We are simply pushing the money out of our country, which could’ve been put for the betterment of our own nation if we purchased a commodity that has been manufactured in our own country. As a result, the chance of the growth of our economy, even just by a bit, has been missed.

As of now, our government requires money to tackle COVID-19 and to provide relief to the people. However, we are facing difficulties in this as a huge amount has already been earned by the Chinese. As a result, they are rich in terms of economy, army, machinery, and resources.

Is any other country banning the use of foreign products?

Yes, absolutely!

China is doing this for a long time. Chinese people do not use Facebook, instead, they have their own social media platform i.e. Sina Weibo. The Chinese government is promoting the use of homemade products or selling these to other countries instead of buying products from others.

What’s the solution?

The solution for this is quite simple.

We should practice import substitution

Import substitution simply means finding alternatives to those products which are being imported from foreign countries and producing those products in our own country.

This will really stabilize the economy; which will be beneficial for any country.

We should STOP using products whose substitute has been found

Not importing more products from foreign countries will create a necessity for finding an alternative.

We have found a substitute for some products. we should use those, instead of still using Chinese products.

Yesterday the government took an initiative towards this step by banning 59 Chinese mobile applications.

We should NOT burn/destroy goods that are already imported

There are many products that our traders have already imported and paid for. we should not destroy them. this will harm our own people only.

People are burning these products which should not be done. This is because someone from our country has already paid a sum of amount to purchase these products. Instead of burning or destroying these goods, we should consider buying a foreign product for one last time, and that would be all.

Prepare a Road Map for the future

With the help of the government, we should prepare a roadmap for the future, so that we can become “atma-nirbhar”. This cannot happen overnight. It will take time to find alternatives for the products which are being imported from outside and then it will take more time to make that product available to the people at a lower price. Until then we should play smart.  

I hope you understand the concept. Our governments could not directly ban foreign products because of some reason, and we should understand this. It’s only us who are capable of making a change. ‘We’ have to find a way. ‘We’ have to take the initiative. The people of a country, if they do something in unity, nothing can stop them. There are many examples for this.

Liked the article? Share it. Liked the idea? Share it. Just pass this message, so it doesn’t go to waste. We are already in a war with coronavirus. Let’s not create any more problems. Let’s support the country.

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