Indian exporters wary of potential Chinese dumping after latest US-China trade spat
India’s exports community has expressed concern over the possibility of dumping from China following the recent escalation in tariffs between the United States and China. The fresh round of duties imposed by Washington on select Chinese goods could motivate Beijing to offload excess inventory of affected products into other markets like India.
Ashwani Kumar, who heads the Federation of Indian Export Organisations, said China currently has surplus manufacturing capacity in many sectors due to its large scale of production. With access to a key export destination now restricted, there are valid doubts whether Chinese businesses may try to alleviated oversupply issues by selling goods at very low prices in third countries. Indian regulators will need to be vigilant to prevent any unfair trade practices involving predatory exports pricing, he added.
Notably, China dominates the global lithium-ion battery sector which is core to the burgeoning electric vehicle industry. A single Chinese manufacturer called CATL holds a massive two-thirds share of worldwide battery manufacturing. As the US raised tariffs on EV batteries to over 100%, this could motivate Chinese battery exporters to pursue alternative markets aggressively. Indian EV component makers may have to brace for stiff competition if Chinese rivals opt to offload inventory at very low costs.
Industry analysts say the ongoing tariff duel between the world’s two largest economies could open up opportunities for Indian exports too. New market access may emerge if China decides to retaliate against the US moves. However, Indian businesses will only benefit if they can match Chinese price points while having the necessary capabilities. The coming months will be crucial to gauge the impact of Sino-US trade tensions on competition dynamics in third country export markets like India.
