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Another thing! India wants to use this to block 500 Chinese goods!
Dec 19,2023
According to a recent report by the Economic Times, a local media outlet, the Indian government is using quality control orders,"Slowly" certify the quality of products made in Chinese factories, thus putting pressure on multinational enterprises that rely on Chinese factories.
Last year, China's exports to India were118.5 billion US dollars, while imports from India are only 17.4 billion US dollars. This huge trade deficit makes the Modi government very uncomfortable.
Reported that,The ultimate goal of the Indian government is to require them to reduce their dependence on Chinese imports and instead produce in India.
Again against China! Restrictions500 a variety of commodities
The quality control order is the compulsory certification of the Indian Central Government to require certain products or product categories to comply with Indian standards, and the relevant competent authorities to include products in the Indian Bureau of Standards.
According to the quality control order, the relevant products and their components need to be manufactured in factories certified by the Indian Bureau of Standards,No matter whether the factory is in the country or abroad, and each factory needs to be separately certified, even if they belong to the same manufacturer.
InNo person shall manufacture, import, distribute, sell, rent, lease, store or display any product covered by a QCO without a standard mark after the date of entry into force of the QCO, unless a valid license or CoC from the BIS is obtained.Foreign manufacturers will be requiredBIS's Foreign Manufacturer Certification Scheme (FMCS) receives a license or CoC from BIS.
InBefore 2014, there are only 106 kinds of commodities that need to pass the "quality control order,Today, has reachedMultiple 500, including toys, footwear, air conditioning and other products.
This certification is actually very difficult for Chinese factories to get,The Indian Bureau of Standards team has repeatedly delayed going to China to certify the factory, but according to Indian media reports,India's local factories want to pass.The "quality control order" is much easier.
India“strict prevention”Made in China
India's "Economic Times" recently reported that an executive of an air-conditioning manufacturer said that the Indian Bureau of Standards team was unwilling to go to China to certify the factory.
Not only that, India."Strictly prevent" made in China, even to Vietnam, Thailand, Indonesia and other Southeast Asian countries.
At the end of November, Nike wrote a letter to the Indian government requesting the Indian government to certify its factories in Vietnam and Indonesia in a timely manner. Since May 2023, 26 suppliers of Nike and Converse have submitted applications.
India's "Business Standard" reported that it is difficult for companies such as Nike, Mitsubishi and air-conditioning manufacturer CARI to obtain certification from the Indian Bureau of Standards for their supplier factories in China. They wrote to the Indian government to seek certification for their manufacturing plants in other Asian countries. However, the Government of India remains hesitant,Because they are worried that companies may pass through Vietnam and Thailand."Back door" imports of Chinese goods.
There are anonymous Indian executives who believe that,Indian officials should visit China to solve this problem, because many industries in India still need necessities from China.For some Indian manufacturers, China is a key source of imports. For Chinese exporters, considering the cost, most of them will not apply for quality certification in India.
Starting from next year, a new batch of products will be included in the quality control order, including ceiling fans, stainless steel kitchenware, etc., with a total of upItem 115.
Chinese enterprises respond positively
India was once calledThe "graveyard of foreign enterprises" countries, in recent years seems to be particularly unfriendly to Chinese enterprises,Banned from a large number of ChinaAPP, to seize the assets of Chinese mobile phone manufacturers, restrict Chinese enterprises from participating in public projects and infrastructure construction, and now issue quality control orders.The Indian government's suppression and rejection of Chinese companies can be described as a rush to kill.
In response to India's various pressures, Chinese companies are also actively looking for countermeasures,The most direct approach is to increase local production and investment in India.
For example, building a factory in India to produce assembled products and hiring more Indian employees.,This both avoids tariff barriers and builds the company's local imageOn this basis, Chinese companies can also protect their rights and interests through legal channels and file complaints against unreasonable penalties.
Increased communication with the Indian government and all sectors of society is also critical.Enterprises can participate more in India's public welfare undertakings and demonstrate corporate responsibility.
Looking for local partners in India to jointly develop the marketThe establishment of a research and development center in India and the development of localized innovation will also help to gain recognition from all walks of life in India.
However, India's restrictions on Chinese goods are far from being stopped,A senior Indian government official said that the Indian government plansWithin 2-3 years, expand the scope of mandatory quality standard certification to 1500-2000 products, from toys to electronic products.
The Indian government recently announced217 products, which will be included in the scope of quality control orders in the next few years. This includes door handles, water dispensers, air conditioners, refrigerators and car rims, as well as industrial products such as aluminum ingots, billets and wire rods.
Foreign traders who export to India, remember to pay attention to trade risks!
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