Explainer | Can India afford an economic battle with China?

Military clash in the Himalayas that killed 20 Indian soldiers has an angry public demanding retribution and politicians calling for economic boycotts

While Modi has called for India’s ‘self-reliance’, this is a big ask for a country where Chinese capital has come to pervade almost every aspect of life

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Indian protesters burn an effigy of Chinese President Xi Jinping in Kolkata. Photo: AFP

Published: 11:30am, 27 Jun 2020Updated: 1:06pm, 27 Jun 2020

When 20 Indian soldiers were killed in a clash with Chinese troops in the Himalayas this month, a fragile peace on the top of the world that has held for nearly 60 years looked dangerously close to shattering.

While diplomats and army commanders remain locked in talks to resolve the tensions on a military level, many experts fear another type of conflict is looming as ordinary Indians demand economic retribution and punishment of their neighbour.

A traders association in New Delhi has demanded hotels ban Chinese visitors and circulated a list of 3,000 Chinese imports for people to boycott; developers have created a mobile application that detects and removes programs developed in China. Google has since taken it down, but not before it was downloaded more than a million times.

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Indians call for boycott of Chinese goods after deadly border clash with China

Politicians have been quick to join in the calls, demanding a boycott of everything Chinese, from restaurants to mobile applications. Some have even got physical. Members of Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP) ransacked a Mumbai store selling toys ostensibly from China, while one of its leaders threatened to “break the legs” of anyone using Chinese goods.

Regional governments, too, have embraced the calls. In Haryana and Uttar Pradesh, BJP governments have cancelled contracts given to Chinese companies while the central government has demanded its suppliers make clear the origin of their products and the percentage of local content. News reports suggest Chinese imports have been disrupted because authorities are delaying clearances.

While the repercussions of these boycotts are not yet being discussed, it is a conversation India must have, and soon. Its economy is expected to contract by as much as 4.5 per cent this year, according to the International Monetary Fund. Can it really afford an economic battle, in addition to the military scuffle, with its single biggest importer?

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Indians burn effigies of Chinese President Xi Jinping over deadly border clash

CHINA, ALL PERVASIVE