Should India pass a legislation regarding trade with China ?

The trade deficit with China has been around $20-25B range usually. Its only this year that the deficit ballooned to close $40B.

The best way is to keep an eagle eye out for any product dumping and apply anti-dumping duties. Maybe have a taskforce for Chinese products in particular. Make sure that Chinese products adhered to safety standards as well and when it comes to major machinery like Power station equipment and Telecom equiment, have provisions to localise manufacturing and create JVs so that the deficit also means jobs and local knowledge is also created.

Remember that as part of WTO, you can't have laws to just ban exports from a country or hike tariffs as it would be in violation of WTO agreements.

Also I disagree that India does not get any benefit. The reality is that we are getting these products cheaper from China and if these products were not there, then we would have to pay more for the same products or go without the benefit of having these products.

sure..


That is the problem. It's always a zero sum game for both China and US. You guys couldn't understand the concept of win-win scenarios. Pakistan is a tool for China. Chinese are tools of CCP. All the more reason to be wary of China and control the trade with China. China surely will take advantage in the future when the trade value goes to a considerable extent. But i'm all for changing the public policy to facilitate in house development rather than restrict the trade with chinese.

Economically, we are doing win-win game. India got the products it needs at cheaper price ( that is the only reason you buy it), China got the resource and market. As long as india's manufacturing is not catching up, this so called "unfair trading" will continue. You can cut the supply from China, but finally you have to buy it from somewhere else, then you got a new "unfair trading" partner with a higher price. So, currently, both countries are benefit from this trading.

Politically, we have win-win scenarios and also win-lose scenarios at the same time. Nothing is that simple: US wants to use india to counterbalance china and US/China want to use Pakistan to check india's influence while China & india work together to fight against USA on some international problems.

China will not take more advantage from this trade relationship in the future than today. As I said, india has the free will and power to cut the trading relationship at any time.