Job losses, salary cuts and shutdowns: This country is in massive danger due to Trump’s taxes, the country is…
US-China trade war: In a major update amid the global trade war initiated by the United States of America, under the leadership of Donald Trump, media reports have indicated that the new US tariffs are forecast to sharply reduce Chinese corporate profits, particularly in technology, manufacturing, and export-driven sectors. As a result of the ongoing trade tussle between US and China, China is expected to be massively impacted by widespread job losses, business shutdowns, and a wave of bankruptcies. Here are all the details you need to know about the economic trouble expected in China.
Although it may seem that China is not facing any substantial challenges on the economic front due to its political posturing, media reports say that China is planning to tackle the trade war with expanding its presence in alternate markets, stimulating domestic consumption, and adapting its trade and economic policies.
Why tariffs on China is good news for India?
Due to the rising tariffs on China, a report by State Bank of India (SBI) has indicated that India has a significant opportunity to increase its chemical exports to the United States if it manages to negotiate for less than 25 per cent tariffs. As reported by ANI news agency, the SBI report noted that by capturing a part of the market share currently held by China and Singapore, India can increase its share in chemical exports to US.
How India can beat China?
The report highlighted that if India is able to capture just 2 per cent of the chemical export share from these two countries, it can potentially add 0.2 per cent to its Gross Domestic Product (GDP). The report pointed out that among the top five imports by the USA, India has a revealed comparative advantage (RCA) only in the chemicals sector.
With China now facing higher tariffs on exports to the US, the report notes that this could open a window of opportunity for India to step in and increase its exports in chemicals, including pharmaceutical products.
(With inputs from agencies)
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