It is necessary to pay attention to several points before any kind of trade ban is imposed on China. In the technology sector, 18 out of 30 unicorn companies in the country are funded by China. It is estimated that Chinese tech investors have invested around $ 4 billion in Indian startups. China's presence in the auto sector was not yet right. However, the possible change of electric vehicles in India has given them an opportunity to pursue their electric buses in India. India's trade dependence on China is huge.

The irony in this situation is that India exports raw materials or materials to the manufacturing sector of China, while high imports of finished materials are high. It would not be wise to exclude China in any sense. Currently, when the whole world is facing a health crisis, business and economic discussions have left behind. Under these circumstances, it would be difficult for an emerging economy like India to think about changing China. China has established its dominance in the global market through increased productivity and employment.

For your information, let us tell you that the current health crisis has reduced the purchasing power of the general public of India, because they have less money on hand to afford good quality products with relatively high prices. Indian companies are not ready for the option of cheap Chinese products. How long they will achieve the required level of quality is difficult to calculate between epidemics. China is struggling with small and new startups and shortage of MSME funds. During the pandemic, the situation of alternative fund raising or post-recession will be very challenging for them. All the same, it can raise serious questions not only on their growth but also on their continuity. China is not interested in shutting down trade with India, as it will affect its surplus badly. On the contrary, India still does not have sufficient infrastructure and alternative investment possibilities to remove China. Two crises, such as health and security, have given rise to alternative value chains and the need to end dependence on China.

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