China Takes on India
on India's Home Turf
Dr. Bill Belew
Issue I - June 11, 2006
Introduction by Mr. Stolyarov:
According to this article by Dr. Belew, it seems that China has a
comparative advantage over India in textiles and can export textile raw
material to India cheaper than India can produce it. The importing of
Chinese textiles will redirect Indian labor toward more efficient tasks
which Indians can perform at a comparative advantage over others. It
will result in growth in the standards of living of Indians, Chinese,
and everyone else.
According to this report, China is making
inroads into India's domestic market.
Imagine that: China can produce textile raw
material and export it to India cheaper than India can do it on
The increase in imports to India from China is
growing at a 33% a year rate.
1. India has lower-scale operations.
2. India cannot fulfill large-scale orders.
3. India cannot produce specialized fabrics.
Thus, India has to rely on imported fabrics.
here to continue reading and comment on
Dr. Bill Belew is a former Intelligence
Officer for a Destroyer Squadron. He lived 20 years in Japan, where he
started a language school for Japanese
Dr. Belew teaches classes for a vocational school and online for a
See Dr. Belew's blog,
for news and discussions about business and current events in Russia and
for Dr. Belew's reports on business in China and
on business in Japan.
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