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Policy Options on Ways for Responding to India’s Boycott Measures against China’s Electronics Industry (No.249, 2020)


By Yang Jianlong, Research Department of Industrial Economy, DRC & Li Jiusheng, State Research Information Technology Co. Ltd. (SRIT)

Research Report, No.249, 2020 (Total 5993) 2020-10-22

Abstract: For quite some time, the electronics industry has been a leading force in promoting the development of China-India bilateral economic and trade relations. But recently, India has launched a boycott drive against China’s exports and investing companies in many areas, among which the electronics industry is mostly affected. On the one hand, India’s import volume of China’s electronics products has dropped significantly, showing an obvious trend of “De-Sinicization”. On the other hand, India has adopted a strong policy to resist China’s electronics and companies. It is projected that India’s high dependence on China’s electronics industry will be completely reversed in the next 6 years and India will become a major player competing with China in the global market. In this regard, we need to, at the national level, increase the strategic costs of India in changing market rules and adopting the tactics of market for technology. Meanwhile, we need to guide the diversified development pattern of the global electronics industry to mitigate the adverse impact caused by the rise of India’s electronics industry, give play to the guiding role of the industrial associations, encourage China’s companies to go global through interbusiness collaboration, and enhance their ability to cope with trade and investment frictions.

Keywords: electronics industry, international competition, go overseas together