The Sino -US trade war has not seen signs of slowing down, coupled with the crown disease epidemic crackdown, which has caused China to face the threat of foreign capital escape. India takes the opportunity to recruit foreign enterprises, including providing land to intended to set up manufacturers and launching tax reduction measures.However, experts point out that the current shortage of corporate funds, and China and the global supply chain are better than India. For merchants, the cause of abandonment in India is not great. It is not easy to implement it.
India has announced that it has been announced nationwide to prevent immunity from the end of March this year, causing the economy to be severely frustrated, and the unemployment rate has increased to 27.5%.Prime Minister Modi launched a $ 266 billion in economic measures earlier, attracting foreign investment, and driving domestic demand to focus.The Financial Times said that India has beckoned to potential investors in the United States, Japan and other places, hoping to replace China's position in the global supply chain.Bloomberg quoted Indian officials earlier this month and reported that in April this year, the Indian government exposed to more than 1,000 U.S. companies and sent overseas delegations to lobby merchants who intended to move away from China to set up factories in India.
Land tax reduction preferential lobby US companies
Officials revealed that the relevant discussions involved more than 550 products, which preferred medical equipment, food processing, textiles, leather and automotive parts.Talk.Officials believe that although the cost of operating in India is still higher than China, it is more cost -effective to return to the United States or Japan.The Indian side also guarantees that the company's requirements should consider the amendment of labor laws involved in the factory and provide tax benefits, and try to eliminate the obstacles of foreign investment in India.
Nisha Biswal, chairman of the US Indian Business Commission (USIBC), said that the Indian central and even local governments concentrated firepower to attract foreign companies to move the supply chain. It is believed that companies in India will take the lead, Shin India.Indian official investment promotion agency Invest India Chief Executive CEO Deepak Bagla even bluntly stated that the epidemic will only accelerate the process of hedging from China.
However, many observers have reserved the prospects of abandoning China to abandon India.At the end of last month, the investment bank's Morgan Stanley analyzed that at the end of last month, companies in various places lacked capital investment in new operating bases or changed their existing supply chains. At the same time, after the epidemic rotated by China, the production line had quickly responded to the track, which made many manufacturers make many manufacturers.Establishing confidence in the production capacity of the Chinese epidemic has allowed China to continue to serve as a large product production base.
China: Smart entrepreneurs do not abandon the huge market
Observer Rahul Jacob pointed out that the production line and the supply chain cannot be uprooted upside down, nor can large enterprises migrate casually.He pointed out that China can provide complete infrastructure facilities, including large ports, highways, high -quality labor and logistics, and can better meet the strict requirements of international enterprises.In addition, the relationship between India and foreign investors is repeated, and many regulations are not conducive to attracting foreign capital. For example, it is forbidden to sell non -necessary products for e -commerce companies, or restrict the entry of neighboring funds.
When the Minister of Commerce of China, Laoshan responded to whether the epidemic would withdraw from China yesterday, and acknowledged that the epidemic affected the global multinational investment, but also said that China has obvious advantages, including enriching high -quality labor resources, improving industrial supporting capabilities, etc.Will not give up the huge Chinese market.
Unditting measures to promote US companies to withdraw from China
In addition, Reuters reported yesterday that U.S. officials and members of Congress Zhengcao proposed proposals to promote multiple measures to promote US companies to withdraw the supply chain out of China.The methods include tax cuts, update regulations, and the launch of Ryoring Fund (RESHORING FUND) with a scale of US $ 25 billion (about 193.7 billion Hong Kong dollars).The United States, but this may violate the norms of the World Trade Organization (WTO).U.S. President Trump has signed an administrative order last Thursday to give the US international development financial company power and assist American native manufacturers to give priority to producing what the United States needs.It is reported that both the Democratic Republican parties are draft draft drafts to reduce US dependence on Chinese goods.Chinese goods account for 18%of the 2019 imports of the United States.
