India

The Economic Times | English | News | Nov. 21, 2024 | Regulation

Commerce and Industry Minister Piyush Goyal emphasized the necessity for e-commerce firms to comply with India's foreign direct investment (FDI) regulations. He criticized these companies for engaging in predatory pricing and questioned Amazon's reported $1 billion investment in India, suggesting it primarily offsets market losses without benefiting the economy.

Goyal reaffirmed that the rules regarding FDI in e-commerce are explicit, insisting that firms must operate within these legal parameters. He pointed to ongoing scrutiny of e-commerce practices, including investigations by the Enforcement Directorate into vendors linked to Amazon and Flipkart for possible FDI violations.

Current regulations allow 100% FDI through an automatic route in a marketplace model, where platforms can facilitate third-party sellers but cannot hold inventory or set prices. In contrast, investment is banned in inventory-based models. The Confederation of All India Traders (CAIT) has raised alarms about major e-commerce firms undermining small retailers and violating FDI rules, while the Competition Commission of India (CCI) investigates possible anti-competitive behaviors in the industry.

Livemint | English | News | Nov. 21, 2024 | Shifting Geopolitical Alliances

A congressional panel has recommended a tougher trade stance against China, suggesting the rollback of a nearly 25-year-old policy that has contributed to China's economic growth at the expense of U.S. interests. The U.S.-China Economic and Security Review Commission's annual report advocates for ending permanent normal trade relations with Beijing, aligning with Republican lawmakers as tensions rise under the anticipated Trump administration.

The proposed changes would reinstate annual reviews of China's trade practices, enhancing U.S. leverage to address perceived unfair behaviors. This move indicates a shift towards a more assertive trade policy focused on protecting American industries and workers from economic coercion. The commission, formed in 2000 to evaluate the national security implications of U.S.-China trade relations, presented these recommendations amidst ongoing debates over China's integration into the global economy.

The 2001 decision to support China's entry into the World Trade Organization was based on hopes that economic integration would lead to political liberalization, which has not occurred. Since Trump initiated a trade war in 2018 to tackle trade imbalances, tensions have increased. Experts warn that proposed high tariffs on Chinese products could harm the Chinese economy and raise consumer prices in the U.S.

As of 2023, the trade imbalance with China is $279 billion, down from $418 billion in 2018. In September, Republican senators introduced a bill to revoke China's current trade status, arguing that providing China with trade benefits similar to those for U.S. allies is unjust. Rubio emphasized that the growing trade deficit has resulted in significant job losses in the U.S. Concurrently, a bill was introduced in the House by Rep. John Moolenaar, highlighting a bipartisan effort to reevaluate the trade relationship with China.

The Economic Times | English | News | Nov. 21, 2024 | Geopolitical Conflict and Disputes

China's Foreign Minister Wang Yi has urged the resumption of direct flights and improved bilateral relations with India during a meeting with Indian External Affairs Minister S. Jaishankar at the G20 Summit in Rio de Janeiro. This call indicates a potential thaw in ties strained since the 2020 border conflict, which resulted in casualties and military buildup. Wang emphasized the need for progress in direct flights, journalist exchanges, and visa facilitation.

These discussions follow a breakthrough in October when Chinese President Xi Jinping and Indian Prime Minister Narendra Modi met for the first time in two years and agreed to de-escalate tensions. Wang highlighted that the common interests of China and India significantly outweigh their differences, advocating for collaboration through mutual development.

Restoring direct flights and easing visa processes are crucial steps toward normalizing relations between China and India, focusing on development rather than discord as both nations aim to strengthen their partnership.