Friday, 28 November 2014

China wants to push polluting 'sunset' industries to India......

BEIJING: The best way to turn Prime Minister Narendra Modi's 'Make in India' a success is to absorb sunset industries with low technologies, which China is pushing out, according to an article in the Global Times newspaper, which is one of the organs of the Chinese Communist Party.

"China's sunset industries are where India's hope lies," the article by Ding Gang, a senior editor of People's Daily, the main organ of the Communist Party, said.

Hiding the fact that it is Chinese companies that are desperate to relocate their plants to India and other neighboring countries, the article advises the Modi government to learn from China's success in the manufacturing sector.

China has launched a massive drive to relocate outdated and polluting technologies to neighboring countries including Vietnam, Laos and Bangladesh. It is now looking at India for a possible location because of the advantages made available under the 'Make in India' policy.

But Chinese companies have faced severe resistance in the form of anti-China riots in Vietnam some months back.

Leaders and businessmen from different Chinese provinces are visiting India looking for opportunities in sectors like textiles, chemicals, iron and steel, low-end motors and machines. They ran desperate to deal with overcapacity and rising production costs by transferring plants to India and other countries.

China's People's Daily has advised the Modi government to learn from their success in the manufacturing sector. 

"What India needs to move into are the products China has been making but lacks advantages in doing so compared with India. In other words, China's sunset industries are where India's hope lies," the article said.

It did not mention the disadvantages faced by Chinese industries which include government censure for high-polluting industries, and rising cost of labor, land and components.

PM Narendra Modi launched the 'Make in India' campaign in September to transform India into a global manufacturing hub. 

"However, New Delhi's strict control and regulation have set obstacles for Chinese enterprises to enter its market in recent years. For example, some textile firms would rather choose Vietnam, Cambodia and even Myanmar as their investment destinations," the article said.

"India has a lot of disadvantages in developing its manufacturing industry. For instance, its market has yet to be open enough to foreign capital; it has too many small enterprises and a poorly educated workforce," it said.

The Chinese desperation is relocating industries was evident as the article said, "Chinese corporations that manufacture these products can bring not only capital and order, but also technologies, managerial expertise, market and support in other arenas".