New Delhi: While noting the need to engage with China, a strong element in the global supply chain today, External Affairs Minister S Jaishankar cautioned on finding the “right balance” or else the dumping of foreign goods might lead to domestic sectors getting “hallowed out.”
Noting that China accounts for 32-33 per cent of global manufacturing, the EAM stressed that there should not be “excessive dependency” on a single supply chain.
The Foreign Minister was speaking at the ‘Bharat @100’ event, organised by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) on Thursday. He was asked about the connection with China because of Beijing’s strong presence behind almost every supply chain.
When posed with the statement, “If you want to be a supply chain you have to have a connection with China because they are the supply chain behind the supply chain behind literally everything”, the EAM said that there are two important observations to be made.
“There are global supply chains and when one single country accounts for 32-33 per cent of global manufacturing then it is logical that many supply chains will go to that country and this is a reality which we will have to factor into our calculations. But it is also a fact that if we become excessively dependent on a single supply chains or in the name of supply chains you open up your markets so that it is no longer the supply chains but your sectors are getting hollowed out, you have to be careful there”, the External Affairs Minister said.
Jaishankar further suggested that though there is no objection to doing business with China, but there is also the need to look at the “bigger term implications” especially for the MSMEs.
“We don’t want to end up as a market of another economy and not be able to compete with their products which are dumped in our country. So we have to find the right balance here,” he stated.
Reflecting on the strained India-China ties lately, the Foreign Minister said, “Now there is a second problem. For the last four and a half years, our political relationship with China has not been good because of the situation at the border.”
He added, “There are no black-and-white answers in very sharp terms. I think everything needs to be balanced. I would advocate that with China.”
Earlier on Wednesday, Jaishankar gave a detailed speech in the Parliament on India-China ties and highlighted its various intricacies. He had noted that India remains “committed to engaging with China through bilateral discussions to arrive at a fair, reasonable and mutually acceptable framework for a boundary settlement.” (With inputs from ANI)
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