By CDEP Media
China’s economy is facing significant challenges. Despite their government’s concerted efforts to project otherwise by claiming the country’s GDP to achieve 5.2% growth this year, critical issues still remain evident. The country’s consumer spending is weakening, and the housing market is yet to make a recovery from its 3-year slump. Naturally, China’s consumption of major nation-building materials such as polyvinyl chloride suspension (PVC-S) has taken a nosedive. However, its economy cannot afford to slowdown the production of such products, as it would lead to large-scale unemployment in China. Hence, China has doubled down on exports by further reducing prices to marginal costs or even lower, just to keep their economy running and preserve their jobs. Since major Western economies have raised trade barriers to curtail the Chinese onslaught of price undercutting in recent times, India has ended up becoming a major dumping ground for Chinese PVC.
Article authored by Dr. Jaijit Bhattacharya and Shreedutt Patnam
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