BBC Chinese Edition reported that as U.S. President Donald Trump imposes tariffs of up to 145 percent on Chinese goods, Chinese manufacturers are scrambling to find alternative markets. One major impact is being felt in India’s textile industry, where Chinese yarn is being dumped into key production hubs, triggering alarm among local factory owners.
Manufacturers in India worry that their products cannot compete with the influx of low-cost Chinese alternatives, particularly given their higher raw material costs. “The cost of raw materials here isn’t as low,” one textile producer said, highlighting the mounting pressure on domestic firms.
In response to growing concerns, Chinese Ambassador to India Xu Feihong stated in the Indian Express that China “will not engage in market dumping or vicious competition, and will not impact the industries and economic development of other countries.” Nevertheless, fears of dumping continue to intensify across multiple sectors of India’s economy.
India remains highly dependent on Chinese raw materials and intermediate goods. Its trade deficit with China has now ballooned to US$100 billion. In March alone, imports surged by 25 percent, largely driven by demand for electronics, batteries, and solar panels. As a countermeasure, India’s Ministry of Commerce has established a special committee to monitor imports of cheap Chinese products, while its trade agencies are actively investigating multiple industries, including viscose yarn.
Despite ongoing tensions following the 2020 border conflict, Indian imports from China have continued to grow. Analysts at Nomura Securities caution that India must respond swiftly — not only to capitalize on opportunities presented by the U.S.-China trade war, but also to avoid the manufacturing slowdown often seen in countries with rising Chinese imports.
Source: BBC Chinese, May 6, 2025
https://www.bbc.com/zhongwen/articles/cm24lgrz10ko/simp