China Electric Instrumentation Entering Tariff

India's Minister of Public Enterprises and Heavy Industries Midfielder Pradur Patel held a meeting on November 3 to discuss and promote domestic proposals on levying tariffs on imported power instrumentation. The meeting was in response to local manufacturers’ requirements for restricting the import of China’s power equipment. Indian Ministry of Heavy Industry officials and officials of the Ministry of Commerce and Energy attended the meeting. An anonymous senior government official in India stated that for a long time, due to the entry of cheap power equipment into the market in China, domestic companies complained about the decline in competitiveness. If we can impose tariffs and consumption taxes on China's power equipment, the effective tax rate for such equipment will reach 17% to 18%.

At present, China is India’s largest trading partner. According to customs data, from January to October this year, China’s exports to India totaled US$54.5 billion, an increase of 26% year-on-year, and US$37.2 billion in imports, a year-on-year increase of 8.9%. Electrical machinery and other mechanical industrial products are China's major products exported to India. India’s plan for China’s power equipment is based on its strategy of revitalizing domestic manufacturing and restricting Chinese exports.

Experts said that in the context of the lack of optimism in the US and European markets, Chinese companies are increasingly looking to India, Brazil and other emerging market countries. These countries have also become an important source of growth for China’s exports. However, these countries have gradually exposed the trend of trade protection. This undoubtedly makes the situation of Chinese enterprises more difficult and also increases the uncertainty of exports.