Indian Businesses Urged to Adopt 'Balanced' Approach in Ties with China: Jaishankar

External Affairs Minister S. Jaishankar has called for Indian businesses to adopt a "balanced" approach in their dealings with China, warning against excessive reliance on Chinese supply chains due to potential risks to India’s national interest. Speaking at an interactive session organized by industry body Assocham on December 5, 2024, he emphasized the importance of carefully evaluating long-term implications, particularly for micro, small, and medium enterprises (MSMEs).

Acknowledging China's significant role in global manufacturing, with a 32-33% share, Jaishankar noted, "It is logical that several supply chains will go through China, and we must factor that reality into our calculations." However, he cautioned against dependence on a single source, adding, "If your sectors are hollowed out in the name of supply chains, you must reconsider your approach."

He clarified that India does not advocate for avoiding business with China but urged industries to weigh the broader consequences of their trade and investment decisions.

Referring to the resolution of the remaining friction points along the Line of Actual Control (LAC) in eastern Ladakh, Jaishankar highlighted "some progress" but stressed the need for continued discussions with Beijing. The nearly four-and-a-half-year standoff ended last month, but the minister noted, "There are no black-and-white answers. Everything needs to be balanced."

In response to China's readiness to welcome more Indian firms into its market, Jaishankar reiterated India's desire to avoid becoming merely a consumer market for foreign economies. "We must ensure our industries can compete fairly and not be undermined by dumped products," he said.

On the disruptions in Red Sea shipping lanes due to West Asia’s geopolitical situation, Jaishankar highlighted the economic consequences, including increased transportation costs. "We are engaging with all key players, including Iran and Israel, to seek restraint and a ceasefire," he said. The Indian Navy has also deployed ships to safeguard shipping routes.

Addressing India’s trade imbalance with Russia, Jaishankar said New Delhi has urged Moscow to open its economy further to Indian exports, particularly in sectors like pharmaceuticals, marine products, and agriculture. He pointed out barriers such as sanitary and phytosanitary (SPS) restrictions and non-tariff barriers. "These are common tactics to limit competition, but we are working to address them through persuasion and negotiation," he added.

Jaishankar’s remarks underline India’s nuanced approach to navigating its relations with China and other global partners, balancing economic interests with national security and strategic autonomy.