China must worry about jobs as firms move production to India
BEIJING: As China’s telecom firm Huawei starts manufacturing in India+ , official media has raised the red flag, warning that Beijing needs to worry about job cuts due to shifting of production bases as economic rivalry increases between India and the world’s second largest economy.
“China needs to worry about effect of industrial transfer to India on production chain,” an article in the state-run Global Times said on Monday.
“As Chinese manufacturers show an increasing interest+ in setting up assembly lines in India, the economic competition between the two countries is likely to enter a new stage as India and China vie to expand their industry chains,” it said.
Huawei “joining a wave of smartphone vendors establishing production facilities in the promising mobile market” would result in job cuts if mobile manufacturing shifted to India.
“In recent years, countless Chinese companies have been included into the production chain for smartphone vendors. It is difficult to accurately determine how many Chinese workers are involved in the production chain, but what is clear is that all those workers face potential job cuts if smartphone vendors transfer the whole industrial chain of mobile production from China to India,” it said.
“Frankly speaking, China can’t afford that. The country has to ensure its competitiveness in production chains at a time when India is becoming a new processing base for manufacturers. This will require Chinese local suppliers to maintain technological advantage through continuous innovation,” it said.
Nonsense. It is true that China”s manufacturing base will suffer, but no country starts wars on Economic competitiveness.
Indias percapita income is 1500 $ but chinas per capita income is 7000 $,naturally salary level in India is low compared to china but quality of labour in India is low due to colonial education system based on foreign language
Stop dreaming dude, China has full control on their manufacturing companies. Huawei has not outsourced any manufacturing unit in India. Its just false propaganda by this illiterate paper.
Even China has started feeling the PINCH. This news recognizes the success of reforms and push that Modi ji”s govt has given to develop India as a manufacturing hub of the world.
MODI HITTING CHINA WHERE IT WILL HURT CHINA DEEPLY, CUT OFF CHINA LEGS TO STAND.
The Dragon seems to be Worried about the Chinese Assembly lines being Shifted to India..Good !!! India should give Sleepless Nights to China…!!!
Even they are setting Industry in India. Still can”t be trusted. Chines are not our well wisher.
when will india became a manufacturing hub
every indian should support make in india
it would be be nice if it is true, but this is not so easy. China has a world class infrastructure, India is many decades beyond it. For manufacturing good infra,sweet, labour is a must.
One small plant will start production in India and that too for the domestic market, and the author is claiming that a significant level of Chinese production is moving to India. Please don”t exaggerate. Our exports are falling and production is flat as evident from recent economic data. It will take a lot of reforms and infrastructure improvements to effectively compete with China. As things stand, we are no match to Chinese manufacturing juggernaut.