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Japan shares Indian fear of Red Dragon

Lola Nayar in New Delhi

India is not alone in fearing the growing dominance of the Chinese dragon. Japan, South Korea and other Asian countries too are closely watching China.

"Japan shares the fears of India and the Association of South-East Asian Nations countries about the growing dominance of China in the region," said Shino Kohei, director of the Japan External Trade Organisation office in New Delhi.

"We are watching India closely to see how it is tackling the invasion of Chinese goods in the market."

To safeguard its agriculture, Japan has imposed huge tariff on Chinese spring onions and mushrooms to stop cheap imports. Similarly, South Korea has imposed punitive tariff on Chinese garlic.

The World Bank estimates that economically China has already surpassed Japan. The Chinese economy is now the largest in Asia.

India has embarked on two studies to help domestic industries evolve clear strategies for exports into China, Commerce and Industry Ministry Murasoli Maran said on Thursday.

The first study will analyse Indian manufacturing and strength in textiles, leather engineering, hardware and electronic goods for export to China as well as the competition posed by Chinese goods.

The second would evolve strategies for exports to China and foster such industries where India has natural advantage and technological capabilities to achieve international standards of design, quality and price parameters, Maran told a seminar organised by the Confederation of Indian Industry.

He urged the Indian industry "not to fear China but to use it as an opportunity".

According to Arun Bharat Ram, vice-chairman of SRF Limited and former president of CII who recently took a delegation to China: "There is increasing interest among Indian companies, particularly chemical, pharmaceutical and IT, to identify areas of cooperation with Chinese companies. While looking for export opportunity, many are keen to set up manufacturing base in the free zones."

SRF Limited too is keenly studying management and operational practices in China to optimize their functioning and reduce costs, said Ram.

While Chinese goods are no doubt invading Indian markets, Indian exports to Beijing have registered the highest growth rate of over 50 per cent from April 2000 to January 2001.

India-China trade has grown to $2.29 billion with imports from China totaling $1.47 billion.

Indo-Asian News Service

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