27th November 2022
The whole of the world has seen disruption in supply chains during Covid -19. It was due to the nearly complete concentration of the entire manufacturing of the whole of the world in China. Many countries have started trying to reduce their over-reliance on China. Please see a brief note on these efforts:
CANADA: Sunday, 27th November 2022: Ottawa: The Canadian federal government unveiled its long-awaited Indo-Pacific strategy on Sunday, with the main goals of moving away from an over-reliance on China and tapping into the Indo-Pacific region, which has one of the world’s fastest-growing economies. The new strategy seeks to protect national interests without compromising Canadian values and principles.
GERMANY: Tuesday, 22nd November 2022: Berlin: At an economic forum organized by Sueddeutsche Zeitung, Chancellor Olaf Scholz said that Germany will not repeat its mistake of over-dependence on Russia for energy and was, therefore, diversifying its trade so that its over-dependence on China, which has been its biggest trading partner for the last six years, is reduced.
However as soon as the Chancellor said it, a major industrial house of Germany warned against spoiling relations with China.
The draft foreign ministry document proposes building stronger trade relations with other economies, other than that of China. It also proposes more controls on German trade with China, including ‘stress tests’ on raw material dependency and ensuring that German investments are not used infringing human rights of various groups in China and in environmental issues.
The German document also points out that China provides, to European businesses, a highly limited access to the Chinese market. China forces mandatory joint venture rules and forced technology transfer on European industries.
China’s trade with Germany reached $244 billion in 2021.
The German government has not yet approved the proposed Chinese takeover of Elmos, a chip production company Dortmund, Germany.
On the same day, i.e. on Tuesday, 22nd November 2022, China’s Foreign Ministry warned Germany against erecting trade barriers, which could de-stabilize supply-chains.
Earlier when on November 3, the Chancellor visited China, the Chinese Government celebrated the first visit by a Western leader after Xi Jinping acquired supreme power. The Chancellor was accompanied by a large delegation of top-most industry leaders of Germany. It has been noted that the German car industry is increasing its presence in China. It also is shifting R&D activities to China. The aim seems to be to “Sinicize” the German companies’ presence in China.
When Germany’s present coalition government took shape in late 2021, its Coalition Agreement contained the makings of a new, much more critical approach to China. The Coalition Agreement supported continued cooperation with China, but only “wherever possible” and only “on the basis of human rights and international law.”
USA: President Trump tried to impose taxes on imports from China. But it did not lead to a great reduction in imports from China.
President Biden’s policies have not been clearly outlined, though disruption in supply chains, due to concentration of the manufacturing for the whole of the world in China, has been noted by every one in USA.
INDIA: The first popular use of the phrase in Hindi was Atmanirbhar Bharat Abhiyan (Self-Reliant India Mission) during the announcement of India’s COVID–19-pandemic-related economic package in 2020. However, till now the program has not met with a great success, due probably to a world-wide slow-down due to Covid-19. In fact, India has seen a continuous increase in the quantity of imports from China.
Note: Please read “Biden’s Grants to Pakistan strengthen China-Pak Axis against Taiwan” at www.DiGiNews360.com