Economic Security and Resilience Review
Date: September 05, 2024
This issue reports on new national development initiatives launched to construct 12 new industrial cities, and the award of the first composite license for lithium mining in Chhattisgarh. It also draws attention to PM Modi’ ’s address to the Economic Times (ET) Summit on August 31, where he spoke about the several industrial and infrastructure initiatives underway that can transform India into a manufacturing hub.
At the same ET summit, EAM Dr. S. Jaishankar highlighted the need to scrutinise investments from China, pointing out that over and above the world’s general “China problem”, India also has border and security concerns related to China.
The visit of Foxconn Chairman Young Liu to India in August, his second in two years, could potentially further boost iPhone and Google phone assemblies in the country. The company is also looking at other areas of business interest, including electric vehicles and battery related infrastructure.
India, as much of the global, is witnessing a sharp rise in steel imports from China. In India, there is also a concern that some shipments are being rerouted through Vietnam. The Directorate General for trade remedies has initiated an anti-dumping investigation against hot rolled products of alloy or non-alloy steel from Vietnam.
India’s engagement with South East Asia witnessed two summit level state visits during the month, by Vietnamese PM Pham Minh Chinh and Malaysian PM Anwar Ibrahim. The latter visit also carried several elements of significance to economic security.
The second meeting of the India-Singapore Ministerial Dialogue, comprising participation by several ministers from both sides, was held in Singapore on August 26 in preparation for the visit of PM Modi to Singapore. It was decided to include Advanced Manufacturing and Connectivity as two new pillars under the Dialogue, further to the four pillars already under focus - Digitalisation, Sustainability, Skilling and Healthcare and Medicine.
At the global level, the meeting between the US National Security Adviser Jake Sullivan and the Chinese Communist Party Politburo member Wang Yi drew much attention. The separate readouts from these meetings, however, indicated the continuing wide gulf between the two sides on issues relating to economic cooperation and competition.
Canada followed the United States in announcing tariff hikes on imports of electric vehicles, steel and aluminium products from China. It also launched a consultation process for certain other strategic products like batteries and critical minerals.
The EU’s investigation process on countering subsidies granted to battery operated electric vehicle manufacturing in China advanced further, with the publication of a draft decision outlining the determined countervailing duty levels. The EU member states are expected to now vote on this before October 31, 2024. China, meanwhile, is also mounting pressure on the EU member states by readying for potential retaliatory actions on brandy, pork and dairy products imported into China from the EU.
These and certain other developments covered in this month’s ESRR can be viewed at ESRR, Vol. II, Issue 8.
To read this issue of the ESRR, Vol. II, Issue 8, please see the PDF attached
At the same ET summit, EAM Dr. S. Jaishankar highlighted the need to scrutinise investments from China, pointing out that over and above the world’s general “China problem”, India also has border and security concerns related to China.
The visit of Foxconn Chairman Young Liu to India in August, his second in two years, could potentially further boost iPhone and Google phone assemblies in the country. The company is also looking at other areas of business interest, including electric vehicles and battery related infrastructure.
India, as much of the global, is witnessing a sharp rise in steel imports from China. In India, there is also a concern that some shipments are being rerouted through Vietnam. The Directorate General for trade remedies has initiated an anti-dumping investigation against hot rolled products of alloy or non-alloy steel from Vietnam.
India’s engagement with South East Asia witnessed two summit level state visits during the month, by Vietnamese PM Pham Minh Chinh and Malaysian PM Anwar Ibrahim. The latter visit also carried several elements of significance to economic security.
The second meeting of the India-Singapore Ministerial Dialogue, comprising participation by several ministers from both sides, was held in Singapore on August 26 in preparation for the visit of PM Modi to Singapore. It was decided to include Advanced Manufacturing and Connectivity as two new pillars under the Dialogue, further to the four pillars already under focus - Digitalisation, Sustainability, Skilling and Healthcare and Medicine.
At the global level, the meeting between the US National Security Adviser Jake Sullivan and the Chinese Communist Party Politburo member Wang Yi drew much attention. The separate readouts from these meetings, however, indicated the continuing wide gulf between the two sides on issues relating to economic cooperation and competition.
Canada followed the United States in announcing tariff hikes on imports of electric vehicles, steel and aluminium products from China. It also launched a consultation process for certain other strategic products like batteries and critical minerals.
The EU’s investigation process on countering subsidies granted to battery operated electric vehicle manufacturing in China advanced further, with the publication of a draft decision outlining the determined countervailing duty levels. The EU member states are expected to now vote on this before October 31, 2024. China, meanwhile, is also mounting pressure on the EU member states by readying for potential retaliatory actions on brandy, pork and dairy products imported into China from the EU.
These and certain other developments covered in this month’s ESRR can be viewed at ESRR, Vol. II, Issue 8.
To read this issue of the ESRR, Vol. II, Issue 8, please see the PDF attached
