Chinese companies should focus on domestic resources rather than investing in India
Published: Oct 18, 2016 09:53 PM
There has been a lot of talk recently in the Indian media as well as on social media about  boycotting Chinese products but trust me, I am well aware of the Indian psyche. It's just rabble rousing. Indian manufacturing cannot compete at all with Chinese products, for various reasons.

For one thing, India lacks infrastructure. The country still needs to build roads and highways to have proper connectivity across the length and breadth of the nation. India suffers from chronic power and water shortages and, worst of all, corruption is highly prevalent from top to bottom in every single government department. Indian politicians are busy courting the West instead of improving ties with China. The US is no-one's friend. The Americans are just indulging India in order to contain China, as the US is jealous of China's development and global power.

India has enough money but the majority of it is concentrated with politicians, bureaucrats and a few crony capitalists. Indian elites don't want to spend funds available in the country, which in reality is the taxpayers' money but is utilized by the Indian establishment for its own personal consumption. Because of this, Indian Prime Minister Narendra Modi has started impractical schemes like "Make in India." The reason is that the Indian establishment wants foreign companies to invest in the country.

Nowadays, the world is witnessing rapid changes. Automation has taken over a lot of basic manufacturing jobs all across the globe. Imports and exports are down. It would be completely suicidal for Chinese companies to put their money in India by starting manufacturing projects there. The labor class in India is not very hard working or efficient. India has numerous labor unions. Their main aim is how to extract more money from the factory owners by doing the least amount of work.

In any case, Indian businessmen flock to China in large numbers to buy products from China and sell them in India. This model suits China, so why disturb it by going and wasting money setting up manufacturing facilities in India?

I am based in Gansu Province. The salaries here are quite low compared to other parts of China, like Beijing, Shanghai and Shenzhen. Plenty of land is available in this province and there is also a sufficient number of educated working class people. The cost of living is also lower in Gansu compared to other major business centers around China.

The Chinese phone making companies should set up their manufacturing units in Gansu Province rather than devoting time, resources, money and energy into setting up facilities in India. Let the Indian authorities bark about the growing trade deficit with China. The fact of the matter is they cannot do anything about it.

The author is an Indian-born freelance writer living in Baiyin, Gansu Province.