The world blames China for this pandemic and the call to boycott their products is understandable. But is it practical? Or is it just emotional rhetoric that will last until the next crisis or the next elections (don't they mean the same?) Closer home, is it not too early and ambitious for India to believe that this is our time to replace China as the factory of the world?
You may hate them but you can't ignore them. Look around your own house and try to pick something that is not '中国制造Zhōngguó zhìzào (Made in China) or at least a part of it made there. From consumer goods to medicines to planes to cars, we rely on them. We are happy to sit comfortably on the recliners made in China, while watching a TikTok video or playing PUBG on our Xiaomi phone in the living room designed on Feng Shui principles, waiting for the Chinese food to be door delivered. All the while, 'Hotei' or the Laughing Buddha as we know him, keeps smiling at us from the corner of our room. And yet, we want to boycott China. Like it or not, we are the reason why 中国人无处不在 Zhōngguó rén wú chù bùzài. (the Chinese are everywhere).We let them encroach our world. They created dependency and we fell for it. Because it made a lot of sense. The truth is, it still does.
Toaster Economics is a reality and the Chinese understood this long before others did. It takes more than 400 subparts made out of 100 different materials to make a humble toaster. It is cheaper and quicker to procure these parts and assemble a toaster rather than making it from scratch. In the business world, the economy of scale decides who wins and who bites the dust. The Chinese may not eat bread toasts for breakfast but they know that the rest of the world loves it and they need toasters. So they decided to be the Factory to the world. They built infrastructure and assets to scale for global needs. 40% of the world's overall trade happens with China. Almost all countries import more from China than they export to them. And they did not achieve this status overnight.
China is known as the natural resource deficient country. So theirs is not an overnight rag to riches story like some of the gulf countries. They didn't take the elevator but climbed every rung of the ladder. Hate them as much as you will, but we must remember that they are the ones to beat. Their political landscape played a crucial role in sustaining a vision. Their inherent skill, and discipline made them perfectly suited for mass production manufacturing. With cheap labor cost to boost, Made in China became inevitable for countries across the globe to grow their business. It still is. So what changed suddenly?
China is known as the natural resource deficient country. So theirs is not an overnight rag to riches story like some of the gulf countries. They didn't take the elevator but climbed every rung of the ladder. Hate them as much as you will, but we must remember that they are the ones to beat. Their political landscape played a crucial role in sustaining a vision. Their inherent skill, and discipline made them perfectly suited for mass production manufacturing. With cheap labor cost to boost, Made in China became inevitable for countries across the globe to grow their business. It still is. So what changed suddenly?
Everything is fine until it is not.
Are we ready to Make in India?
'Make in India' is not a magic switch to turn China off and turn India on. It is an intent statement that needs to be backed with decades of discipline and planning. Small and Medium Industries that will have to play a major role in making this intent succeed are still relying on cheap Chinese made machines to be competitive. India will have to spend billions in building the infrastructure needed to produce the volumes, efficiency to reduce the turn around times, reforms to improve the ease of doing business, and many more aspects to reduce their reliance on China. Let alone wriggling completely out of the dragon's jaws. Statue of Unity is India's pride and an architectural wonder for sure. But this Made in India monument needed parts Made in China to stand tall and make us proud. Think about it.
Make in India is a great start.No doubt. Countries looking to reduce the dependency on China is a wise move. But, we will all do well to remember that it took more than 30 years of ruthless single-minded leadership led by a common vision and discipline to make China reach where they are.
Don't you agree?
'Make in India' is not a magic switch to turn China off and turn India on. It is an intent statement that needs to be backed with decades of discipline and planning. Small and Medium Industries that will have to play a major role in making this intent succeed are still relying on cheap Chinese made machines to be competitive. India will have to spend billions in building the infrastructure needed to produce the volumes, efficiency to reduce the turn around times, reforms to improve the ease of doing business, and many more aspects to reduce their reliance on China. Let alone wriggling completely out of the dragon's jaws. Statue of Unity is India's pride and an architectural wonder for sure. But this Made in India monument needed parts Made in China to stand tall and make us proud. Think about it.
Make in India is a great start.No doubt. Countries looking to reduce the dependency on China is a wise move. But, we will all do well to remember that it took more than 30 years of ruthless single-minded leadership led by a common vision and discipline to make China reach where they are.
Don't you agree?
Very balanced prescription. True. Planning and disciplined execution is the key mantra. Fair, let the whole world resolve to bring down China share in global trade by 10% in x no years. Snowball effect will do the rest.
ReplyDeleteVery well said, its not so easy to get rid off from china, as its every where in our daily to daily living, knowingly, unknowingly we caughtup by chinese.
ReplyDeleteBut yes in otherway need a start and may be this is right time...Made in India 👍
China is fully entrenched all over the world. They have used every demand into an opportunity. They know where it hurts and have a readymade solution for every pain. When you dont know what is pain, even the fear of getting some pain, is making business sense for them. They have made you fear and are selling more different products. One way or the other buy or perish is their strategy. We are hooked already,where is the salvation? Very thought provoking.
ReplyDeleteGood thought by we need to balance out the trade deficit 100B china import to 4-6 B India Export...
ReplyDeleteExcellent article. Food for thought indeed.
ReplyDeleteMy reaction is one fueled by human need Vs human greed. The old adage that 'mother nature provides what we need and may not be able to meet our greed', holds.
India can become self sufficient in every way to meet the need of our ever growing populace. But this needs a (that Covid taught us by being at home) complete overhaul of our 'Need' mindset, disciplined working and respecting mother nature.
This conversation can go beyond the Tigers and dragons fight, slaying the dragon, exiting it's jaws and the like ...
Let us explore and observe the underlying situation, which you have aptly described, compare it to what we needed and used during the last 60 days, buying and using locally produced goods and working as one nation to overcome the pandemic.
They say that what we do for 41 days becomes a habit . If it is , we are moving towards a neo culture of demand and consumption.
This will help all of us, nature and the next generation who are at our mercy.
Do we really need everything that we use ( as you rightly said - made in China)? If we wear a minimalistic hat, a lot of goods that does not come under need will go out. So these can be stopped from procurement from the dragon country.
If we build locally and buy locally, what we need, the circle of money will expand and stay within our society.
The new ways of working from home, restricted travel and social distancing, which is a new normal, will encourage a new life style and needs that can be fulfilled with our own local ways.
A lot of companies spurred by the COVID-19, trade wars and economic- political situation (the situation on our borders are catalysing this patriotism) are considering an exit from China. This creates an opportunity for India, entrepreneurial Indians and the Government to create a platform, policy and intent to attract the migrating companies as a destination of investment and business.
What we do now and how we execute will determine our future.
Do we have the wherewithal- if not, build it. Do we have the competency - if not create and acquire it. Do we have the intent and attitude- it is up to all of us to act positively and with an intent to be self reliant ( atmanirbhar) and become the next powerhouse of the world. It may take is the next 30 years to become that, it may need the discipline, the effort and the positive intent as one nation- so be it!
Let us walk . A journey of a thousand miles starts with the first step.
My view is, there is no time like 'Now'. Now is the time to work collaboratively as one nation. Now is the time to come together as as one country. Now is the time to use locally produced goods. Now is the time to become self reliant. Now is the time to use the God given opportunity to serve the world. Now is the time to give back to nature. Now is the time to create the base for our next generation. Now is the time to grow and thrive.
Now , Now, Now...not tomorrow, not later..
The problem is not "Made in China" but how "China is Made". The cultural shift from the foundations of wellbeing and prosperity to selfbeing and power is the concern.
ReplyDeleteAlso today's China is made by West and not by its virtue. Globalisation, in a way is dead and new trend of "LocGobalisation" is starting and evolve. China has less role to play and hence the shift. India has the advantage only because of its kind of involvement in total ecosystem. India always like to play to its strengths and weaknesses are projected as integration opportunities between nations. Thus drawing a good jigsaw picture solution in the ecosystem.
Very good thinking.All said and done I
ReplyDeletehail the concept of self sufficiency and hence Make in India.It is a long and hard path.I have taught chinese history and communism in China.Chinese national character is always give the master of the world.The so called discipline and servitude imposed by Communist leadership satiates chinese taste for world leadership.Indian democracy and diversities dilute even our moderate goals
With all these limitations we have to try and try work with determination all with a high spirit of love for the country,you know that is the secret ingredient of chinese success.
To be the master
ReplyDeleteBharath matha ki jal
ReplyDeleteWonderfully written. I do feel that this anti china stance is out of emotion and is temporary. Like mentioned in the beginning of the blog almost every product we use is made in China. Interesting fact is China s manufacturing capability had a role to play in building statue of unity. India does not yet have a reliable infrastructure or robust MSME sector to aid any factories that plan to shift from China to India. Only time will tell :), Great blog !, very practical thoughts !
ReplyDelete