China systematically killing Indian manufacturing: L&T

[CS1.6]

We have so much cheap basic chinese goods in india from lamp, scissors, pencils etc. the indian public are buying chinese products because its cheap, we ourself are killing the indian manufacturing industry.

the GoI should stop over import of chinese good in india. only essentials like computer parts should be allowed.

eh, about these cheap goods, importers from indian have done a great job; they always get the lowest price from china, and they always bargin one cent less, one cent less, never give up to buy things at the lowest price;

i have personally meet a lot of indian buyers, and they are so good at price bargain;

i seriously believe you should let those guys for your military purchase, because obviously India bought the military weapons at the most expensive prices.:tank:

 

[Armand2REP]

eh, about these cheap goods, importers from indian have done a great job; they always get the lowest price from china, and they always bargin one cent less, one cent less, never give up to buy things at the lowest price;

i have personally meet a lot of indian buyers, and they are so good at price bargain;

i seriously believe you should let those guys for your military purchase, because obviously India bought the military weapons at the most expensive prices.:tank:

India already has those guys in FinMin. So good at haggling they force the refloating of new tenders. China imports so many counterfeit products into India it is adding up to billions annually. The one I really despised was the "Made in India" labels.

 

[hbogyt]

re

not me upset. EU and US are also upset. why?
All of you are upset because China is able to reap huge profits through fixed exchange rates. Out of jealousy you brand it "unfair".

EU and the US want everything to be"fair" to themselves. Floated, high exchange rates allow them to have a more flexible economy and expand profit margins by buying business inputs from abroad. Yet, they won't let us pick up a bonus of our fixed exchange rate. The US has the least right to complain. Their CAD can easily be resolved by lifting the embargo on advanced equipment like high precision machine tools and technologies, still excluding weapons.

 

[ppgj]

All of you are upset because China is able to reap huge profits through fixed exchange rates. Out of jealousy you brand it "unfair".

EU and the US want everything to be"fair" to themselves. Floated, high exchange rates allow them to have a more flexible economy and expand profit margins by buying business inputs from abroad. Yet, they won't let us pick up a bonus of our fixed exchange rate. The US has the least right to complain. Their CAD can easily be resolved by lifting the embargo on advanced equipment like high precision machine tools and technologies, still excluding weapons.

controlling currencies is not wrong. but it is more suited for countries with less or no growth and poor. because they can't compete against the mighty trade partners.

is china poor? has it stunted growth?

it is the other way round. you are sitting on hefty reserves and own major american debt. growing in double digits!! US under obama is infact talking of G2!! infact Badguy keeps talking about replacing american capitalistic ideology.

why do you need to control your currency? you are creating imbalances in several countries and by sustaining subsidies you are artificially lowering your prices and killing markets. this can't go on for long.

 

[hbogyt]

re

controlling currencies is not wrong. but it is more suited for countries with less or no growth and poor. because they can't compete against the mighty trade partners.

is china poor? has it stunted growth?

it is the other way round. you are sitting on hefty reserves and own major american debt. growing in double digits!! US under obama is infact talking of G2!! infact Badguy keeps talking about replacing american capitalistic ideology.

why do you need to control your currency? you are creating imbalances in several countries and by sustaining subsidies you are artificially lowering your prices and killing markets. this can't go on for long.

Growth figures are not a justification for floating exchange rate. China is still a third world country.

 

[ppgj]

Growth figures are not a justification for floating exchange rate.

great explanation. :icon_salut:

China is still a third world country.

yes. that is what your govt propagates to the world to keep manipulating irrationally for its own gain.

nimo_cn - 07:55 AM 14-01-2010
Yes, China is poor!

 

[hbogyt]

re

great explanation. :icon_salut:



yes. that is what your govt propagates to the world to keep manipulating irrationally for its own gain.

I'll give you an explanation. The growth rate you see today is the result of low exchange rates. Take away the low exchange rates, you take away the high growth. To put it in another perspective, a balanced economy like that of USA can only grow by that much, around 6% roughly. To quickly lift citizens out of poverty, the only way is to "borrow" external demand.

Why must a developed nation have a floating exchange rate anyway? They do as they see fit for their economies. If China will continue to gain from pegging its exchange rate, it will keep it that way.

 

[ppgj]

I'll give you an explanation. The growth rate you see today is the result of low exchange rates. Take away the low exchange rates, you take away the high growth.

agree. but the point is China has already passed that stage. you don't need to control your currency the way you been doing for as long as i can remember.

To put it in another perspective, a balanced economy like that of USA can only grow by that much, around 6% roughly. To quickly lift citizens out of poverty, the only way is to "borrow" external demand.

point is China rapidly reduces poverty; 60 percent decline in 25 years | Worldfocus

why do you need to continue the same way, making enemies in the world.

Why must a developed nation have a floating exchange rate anyway? They do as they see fit for their economies. If China will continue to gain from pegging its exchange rate, it will keep it that way.

ok. if they follow your route and peg their dollar to say 3 yuan (1:3) what will you do?

or if US were to hit back with either cutting off chinese imports or put anti dumping taxes on imports or if they source imports from other countries, what would happen?

point is you have been doing this for long enough now hitting every country in your greed. growth should be fair not only to chinese but their partners too.

 

[no smoking]

agree. but the point is China has already passed that stage. you don't need to control your currency the way you been doing for as long as i can remember.

Oh, no, considering we still have more than hundreds millions people living in poverty, we still need do this.

why do you need to continue the same way, making enemies in the world.

Well, in economic field, there is no enemy but competetor.

ok. if they follow your route and peg their dollar to say 3 yuan (1:3) what will you do?

Well, the problem is that they are incapable of doing this. They have a open financial system, this strategy will make the investment in their countries extremely cheap, then the foreign captial will rush in and pull the exchange rate back. On the other hand, china's exclusive financial system keep the "hot" foreign capital out and put most of its international trade earnings in western financial market, so that china can control the rate.

This is my understanding, if i am wrong, pls correct me.

or if US were to hit back with either cutting off chinese imports or put anti dumping taxes on imports or if they source imports from other countries, what would happen?

Now, china is providing the cheapest goods to US. If US turn to other countries or produce by itself will increase the purchase cost, which leads to the larger trading deficit to US. Do you think US is willing to hurt itself in order to make China uncomfortable?

point is you have been doing this for long enough now hitting every country in your greed. growth should be fair not only to chinese but their partners too.

Business is not fair or unfair unless one side was forced to sign the deal.
Even though China is moving fast in the industry chain, the majority of chinese maufacturer is still focusing in the low-end industries in which sector price is a significant factor. So as long as china is still a low-tech producer, china will continue to seek any opportunity to reduce its price.

Business is business, nothing personal.

 

[hbogyt]

re

agree. but the point is China has already passed that stage. you don't need to control your currency the way you been doing for as long as i can remember.



point is China rapidly reduces poverty; 60 percent decline in 25 years | Worldfocus

why do you need to continue the same way, making enemies in the world.



ok. if they follow your route and peg their dollar to say 3 yuan (1:3) what will you do?

or if US were to hit back with either cutting off chinese imports or put anti dumping taxes on imports or if they source imports from other countries, what would happen?

point is you have been doing this for long enough now hitting every country in your greed. growth should be fair not only to chinese but their partners too.

It has not passed "that" stage, far from it. Millions of Chinese people are still living in poverty.

If they peg US$ to RMB at 1:3, and we peg RMB to US$ at 1:6, then US importers will buy at the more competitive rate which is 1:6, problem solved(I might be wrong before, hehe). Actually, an oppornity of arbitrage exists, worse than aforementioned problem. People can make profit simply by buying RMB from China then sell it for US$ in USA. Free money, hurray! I never realised it was such an a**e-ache for certain countries. Lol

They are already hitting back, but their vested interest in China limits the scope and magnitude of such actions. Maybe a few decades ago, they could smother the Chinese economy with it, but now China has created something for them to lose.

It's every country for itself today. Fair is just a word used to take moral high-ground. Other countries were rarely "fair" to China.

 

[Flint]

I agree with L&T to some extent. China's unfair trading practices need to be countered. We don't want to end up like USA with our manufacturing destroyed and massively in debt. The idea is to strike the right balance between protection and competition that gives the maximum benefit to India.

 

[sandeepdg]

On te contrary, i am concerned one day India will kill Chinese manufacturing after i read what sandeepdg has posted. Who knows!

I will be happy to see that day soon !!!

Well, if you have carefully read what i posted , then the reason Indians are buying Chinese equipment is mainly because of the price difference due to subsidies offered by their government and timely deliveries being offered by the Chinese manufacturers because of the massive capabilities at their disposal, something that our industry is unable to match as of now. These are two prime issues of concern for any large infrastructure project.

About the Arjun vs T-90 , the IA's comparative trials are coming up next month, will get to know which one is better !