Higher US taxes are currently applied to various Chinese imports, such as computer chips, batteries, and electric cars. Pressure is being applied to China over trade policies that are viewed as unfair, but India may not have anticipated the effects of this action.

Study group Global Trade Study Initiative (GTRI) warns that India may become a “dumping ground” for these recently taxed Chinese imports.

Since China has limited access to the US market, it may try to offload these products somewhere else, which might damage Indian enterprises in similar industries.

India’s biggest trading partner these days is China, overtaking the US. Considering the US and EU’s efforts to lessen their dependence on Chinese exports, India is concerned about this.

India needs a well-defined “China strategy” to address the changing nature of trade, claims GTRI. This approach ought to account for possible product dumping, opportunities for Indian exports, and reducing reliance on Chinese imports.

In reaction to China’s alleged unfair trade practices, the US is increasing tariffs. These strategies include cyberattacks and alleged theft of technology transfers. That being said, some experts fear that this move might lead to a full-scale trade war.

Additionally, the research identified a trend of developed countries like the US and EU becoming more protectionist. By using tariffs and subsidies to boost their own sectors, these countries may be obstructing international trade.

Significant tariff rises on a variety of Chinese commodities, including computer chips, medical equipment, and electric cars, were recommended by US President Joe Biden this week.

 In a statement, the White House stated that Biden would keep the tariffs put in place by his Republican predecessor, Donald Trump, while raising others. It listed the “unacceptable risks” that unfair Chinese practices—which it claims are flooding worldwide markets with low-cost goods—pose to the “economic security” of the United States.

According to the White House, the recent limitations impact Chinese imports valued at $18 billion, which encompass solar cells, semiconductors, batteries, essential minerals, steel, aluminium, and cranes.