Decoding China: Lessons for a Vulnerable India

China’s Strategic Plan

• Shashi Tharoor suggests China’s actions to target India are part of a strategic plan to protect its economic interests and internal stability.

• The exodus of over 300 Chinese engineers from Foxconn’s iPhone 17 manufacturing facilities is a geo-economic move to hinder India’s manufacturing ambitions.

China’s Economic Challenges and India’s Challenges

• China’s demographic issues include an aging population, a legacy of the one-child policy, and a property crisis.

• China’s excessive production capacity and faltering domestic consumption have led to a structural imbalance.

• China’s trade surplus is due to weak internal consumption and persistent industrial overcapacity.

China’s Countermeasures

• If India can compete comprehensively, Beijing may escalate its countermeasures.

• India’s tariffs raised to 50% make it less of a threat to China.