India's Delicate Dance: Balancing Economic Ties with China

External Affairs Minister S Jaishankar emphasized the need for India to strike a balance in its economic relationships with China, cautioning against excessive dependency and market hollowing. Addressing strained political relations and the critical role of China in global supply chains, he advocated for careful engagement and strategic partnerships.

External Affairs Minister S Jaishankar has highlighted the delicate balance India must maintain in its economic relationship with China, a dominant player in the global supply chain. Speaking at the 'Bharat @100' event organized by ASSOCHAM, Jaishankar warned against excessive dependency on Chinese supply chains, which could potentially weaken India's domestic sectors.

Addressing China's substantial share in global manufacturing, accounting for 32-33%, Jaishankar acknowledged the inevitability of engaging with China but stressed the importance of not allowing domestic markets to be flooded with foreign goods. He noted the potential risks to India's micro, small, and medium enterprises (MSMEs) if they are unable to compete with Chinese products.

Jaishankar further remarked on the strained political relations between India and China over border issues, urging measured and strategic engagement. He called for caution in business dealings and reiterated India's commitment to resolving boundary settlements through bilateral discussions. His statements emphasize the nuanced approach required to navigate economic and political ties with China.

(With inputs from agencies.)