The Big Picture: Confronting World's Dependence on China

The Coronavirus pandemic is forcing global companies to diversify their manufacturing away from China to other emerging and frontier markets. This pivot became particularly urgent since the outbreak of COVID-19 wreaked havoc on China-based supply chains, exposing the world’s over dependence on China. The supply shock has hit corporate revenues hard due to lost output, sparking a recession. On this edition of The Big Picture we analyse why the world wants to move away from China and can it be done?

Guests:
1- Srikanth Kondapalli, Professor, Center For East Asian Studies, JNU
2- Vishnu Prakash, Former Ambassador
3- Subhomoy Bhattacharjee, Consulting Editor, Business Standard

Anchor: Frank Rausan Pereira

Producer: Sagheer Ahmad

[scorhigh]

Summary The Big Picture: Confronting World's Dependence on China

Overdependence on China which has given the country a coercive handle which it is using merrily. eg: USA is dependent on China for 93% of API imports. India is dependent for more than 60% of API supply.
Economic was the main factor to decide where the industry units are to be located.

Chinese perspective-
IMF estimate- China will grow at 1.2% this year.
PMI has fallen. Falling GDP.
Higher rate of unemployment.
Countries demanding reparations from China.

Issue:
Countries planning to move manufacturing out of China will see a rise in import bill substantially.
Will not be easy to keep China at bay.
At G20 the situation must be discussed- China's hegemonistic position.

way forward:
Countries have to come together to work an alternative.
Countries should build shorter and reasonable supply chains and enhance its capabilities.
Unilateral FTAs will become important.
Policy level directions.
Post lockdown production resumption.

[Gamerbhilai]

Please add subtitles in all videos. Voice quality has deteriorated in covid wfh enviro

[deshaurduniya]

I noticed no speaker has books behind their sitting position, like nowadays trend in debate or conferences. 😝

[akshay]

I think Prof Kondapalli's views have been reflected in current govt discussion by panelist

[shubhangiverma]

Please provide transcription of all your discussions . Thanks

[sidhesadheakshay]

I will be very helpful if RSTV come up with the subtitles 🙏🙏🙏

[divyanshumittal]

Professor should focus on the question asked.

[nayeemmollick]

Please add subtitles the voice quality is not good enough to understand

[Rahulpriye]

A lots of interesting points are made by the panelists today...Unchinization as a solution... Chinese statistics being the notorious one😊...Interesting discussion 👌

[sourabhp]

Confronting China, the only way is to strengthen Multilateral Organisations like UN and G20. without that it is difficult to make China adhere to the rules of the World Order.

[saviorenault]

Somebody please tell the professor to keep it short and concise! I’m completely lost! Pheww!!

[anupamsharma]

Srikanth kondapalli sir knows more about China than Xi 😂.

[appi...]

USA - 95% of API supply
India -60%
China not a market economy, they don't play by the rules
Growth rate of theirs is estimated to be 1.4 %, unemployment rate is also high.
China is too big a part of world economy to be ignored . India can offer some alternatives but still doesn't have that much of scale . Same with the other countries like Vietnam, Indonesia etc.
But this economic blackmail can be allowed to continue and leave ourselves vulnerable . We can at least start decoupling in large critical sectors.
Lesser supply chains gradually, starting at small scale will certainly reduce dependency on China and bargain them to play relatively fairer .
Very much Need to create alternatives sturcture to counter them . China coming out of the pandemic will not be the same China ... Saving rates will rise and buying capacity will low down .

Indian and ASEAN countries coming together( likeminded group) .
They wanted to change narrative, UNSC is ineffective.
Quad ++ ( Germany, France, Far east) should come to contain China.
In India a national level police is required to attract companies, to boost manufacturing and to reduce dependency on China.
Immediate resolution of South China Sea must be taken .

[keshavmadhavsingh]

13:44 to 13 :55. Frank's face from agreement to disagreement. 😄