Aakar Patel |How does China get to its location? Its government plays a key role. This is a lesson for everyone
According to U.S. President Donald Trump, the Department of Commerce and Trade around the world are litigating with the United States. Are we among us? Obviously, we are not. The weekend’s title quoted Indian Commerce Minister Piyush Goyal: “We don’t negotiate at gunpoint”. This is the right way to watch it, I agree. Sovereign states should insist on treating it as equality rather than vassal. China’s revenge is only Canada so far, but without the clarity of the American final arena, waiting is appropriate.
Mr Goyal said there were other things related to this, which put him in trouble. He said India’s new business focused on trade (Dukandari is the word he used), rather than innovation. He compared the situation here to China where startups are using robotics as well as advanced manufacturing and artificial intelligence. Mr Goyal received impetus from entrepreneurs who pointed out that many of the fledgling companies in India are doing the kind of work he said he should do.
The history of business in India will show that until the 20th century, the business community was primarily businessmen and bankers. In 1919, Birlas entered the manufacturing industry, before that, some Gujarat, including Parsis, appeared around 1910. The historical relevance to trade rather than manufacturing goods and its expansion to things like Offiate Apps is likely what Mr. Goyal refers to, and I once again agree with his broad view. The question is: What does Indian startups need to look more like China? It is correct to ask this question to the enterprise. It is equally correct to ask the government about it.
How did China get to its location? The reality was analyzed in this way last year: “China is now the only manufacturing superpower in the world. It produces more than the production of the nine next largest manufacturers.” Much of this depends on what the Chinese government does through industrial policy and judicial Craft.
It has established relations with mineral-rich countries in Africa and Latin America and has established port and rail lines in many countries. Its public sector companies are owned by the government and built commercial ships and commercial aircraft to not rely on others. China has managed to convince all neighbors, including those that have been quarreled with the war and its ongoing dispute, not to let these problems get in the way. China’s largest trading partner is not the United States or even the European Union, but the Association of Southeast Asian Countries, many of which are seriously controversial.
Oppose the U.S. military alliances, such as the North Atlantic Treaty Organization, Australia and 4WD, etc., and so on, China has formulated a development alliance strategy through belt and road initiatives. In addition to Western criticism of this initiative, we should also study the statements and views of China in the countries involved.
Now considering that the world has been worrying about climate change for decades, the Chinese government is the only one that has established an industrial strategy to solve and exploit it.
It was concluded that its automotive sector could not compete with the experience and patents held by Japanese and German companies on internal combustion engines, so China decided to focus on electric vehicles. It produced 500,000 new energy vehicles in 2016, 1 million in 2018, and produced 10,000 rupees last year. Last year, it exported 5.8 million cars.
A similar story was found in solar panels, and the Chinese government once again looked at the future and saw opportunities. Today, it produces more than 80% of solar cells used worldwide, and two-thirds of the planet’s electric vehicle batteries.
The world supply chain from mining to refining to manufacturing and assembly runs through China. It is a monopoly position for the entire sector, especially those that will become more important in the future.
Indeed, as we have seen recently, its entrepreneurs do a great job. And, it can also be seen in the popularity of Chinese entrepreneurs in the United States in what is often seen as the American field, such as social media and retail, in Tiktok, Shein and Temu.
But it was the Chinese government that organized these victorious strategies and industrial policies. This is contrary to what is often considered liberalization, that is, states largely do not interfere with the economy. The Chinese government’s intervention is precisely the country that the country owns and why its entrepreneurs can shine.
This is the impact of the U.S. stock and bond market on tariffs on only one country in the war that President Donald Trump began, and this is China.
China has confidence in standing in the United States because it knows that what it has built through plans and work is difficult to replicate. It understands that no matter the decoupling fantasy of the people currently managing America, the world will depend on the world.
The author is the President of Amnesty International in India. Twitter: @aakar__patel
