India suspects that China may try to trade in India through a third party such as Hong Kong and Singapore. China is also keen on sending goods as well as investment. A person aware of the matter has expressed the possibility of this. If you look at the data, you will find that China can increase goods and investment in India through countries with which there are free trade agreements (FTA), preferential trade agreements (PTA) or other bilateral commercial agreements.
Let us tell you that after the violent clash between India and Chinese troops on the Line of Actual Control in the Galvan Valley in eastern Ladakh, tensions between India and China have increased. 20 Indian soldiers were killed in this skirmish.
If we look at the data, it is found that total foreign direct investment (FDI) has decreased from China, but many Indian firms have received Chinese investment. Similarly, imports from China have recently recorded a slight decline, but at the same time, there has been an increase in imports from Hong Kong and Singapore. These data suggest that something is wrong and needs to be investigated.
According to the Federation of Indian Export Organization (FIEO), while India’s trade with China decreased by 6.05 billion dollars in 2019. It is now limited to $ 51.25 billion. At the same time, Hong Kong’s business increased by close to $ 5.8 billion in 2019. Similarly, India’s trade deficit with Singapore was $ 5.82 billion in the previous financial year.
FIEO Director General and Chief Executive Officer Ajay Sahai said, “The significant growth in key imports from Hong Kong includes electrical and electronic products. While there was $ 1.3 billion in 2017, it has increased to $ 8.6 billion in 2019.”
