China-India Trade War Looms

The Vancouver Sun reports that India’s recent ban of China-made toys may further escalate into a full-scale trade war between the two economic giants.

New Delhi has launched 17 investigations into imports from China, 10 of which are anti-dumping probes, and has banned the importation of Chinese-made toys for six months alleging their high content of toxic chemicals is a danger to children… [China’s Ministry of Commerce] warned India’s actions — which have imposed import restrictions on goods worth $2 billion and included textiles, steel and petrochemicals as well as toys — could seriously affect bilateral trade, which grew by 33 per cent last year to nearly $60 billion…

It remains a moot point whether the six-month ban on importing Chinese toys was truly set off by health worries or to protect the domestic industry from competition.

The article also reports that China-made cell phones have been smuggled into India in the packaging of toy phones.

See also past CDT posts on the Indian toy ban.


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