In a strong critique of global trade dynamics, Union Commerce Minister Piyush Goyal asserted that China’s economic rise is rooted in “unfair trade practices,” hidden subsidies, and skewed labour models—practices largely overlooked since Beijing joined the World Trade Organization (WTO) in 2001. Speaking at the India Global Forum in Mumbai, Goyal emphasized that this growth came “at the expense of fair play,” highlighting how China’s ascent has strained national economies, including India’s manufacturing sector.
A Legacy of Oversight
Goyal pointed out that the current global trade tensions are not sudden developments but the outcome of nearly three decades of complacency by the international community. “The trade standoff we see today is a result of years of inattention to the long-term impact of these practices,” he remarked.
The Illusion of Reform
Criticizing global leaders for their misplaced optimism, Goyal argued that many believed China would reform its economy, enhance transparency, and adhere to fair trade norms. “Instead, China adopted predatory pricing strategies, opaque subsidies, and labor practices that distorted global competition,” he said. He added, “We don’t find fair pricing from China,” stressing that his remarks were grounded in facts, not hostility.
Turning Challenges into Opportunities
Goyal urged Indian businesses to embrace a “nationalistic” spirit—not as isolationism but as a commitment to strengthening domestic supply chains and aligning with national priorities. Drawing parallels with India’s resilience during the Y2K IT boom and the COVID-19 crisis, he asserted, “India can turn this phase into an opportunity for growth and self-reliance.”
Addressing Trade Deficits
Goyal also targeted the Congress party, criticizing the UPA government for allowing the India-China trade deficit to surge 25-fold during its tenure. He alleged that agreements signed by Rahul Gandhi with China led to tariff reductions that facilitated massive Chinese imports into India.
A Balanced Approach to Tariffs
Despite global tensions, Goyal highlighted India’s measured approach to trade, noting that the country’s average applied tariff on U.S. goods is just 7–8%, with many targeted items not even part of India’s import basket. He reiterated India’s commitment to pursuing bilateral trade agreements with nations that uphold fair, rules-based systems.
The Era of Re-globalisation
Rejecting fears of de-globalization, Goyal advocated for a new era of “re-globalization” cantered on fairness and transparency. “We’re not retreating from globalization; we’re reshaping it to ensure no nation gains unfair advantages,” he explained.
Goyal also expressed caution over Chinese companies like BYD entering the Indian market, stressing that any partnership must be transparent, reciprocal, and ethically sound.
This stance reflects India’s growing assertiveness on the global stage, emphasizing fair trade practices and strategic self-reliance as pillars of its economic policy.
