The Trade War taking place between the United States and China has caused much controversy and publicity in recent months. This war has been hurting American’s economy and making things even more tense between China and the United States. These, however, are not the only effects of the Trade War. India stands to gain from these international relations. India may step into the exports of goods and services to China that United States usually handles. India may also step into the exports of goods and services to the United States that China usually supplies. The tariffs by the United States have made it so that China had difficultly supplying these. Also, India could profit from businesses that President Trump is encouraging to move out of China – to India.
This all began when the United States launched an investigation into the intellectual property that the Chinese were allegedly stealing. The United States then hiked up tariffs multiple times in the last year on certain imports. The Chinese retaliated by imposing tariffs of their own. These two countries are now engaged in a Cold-War-like battle of tariffs against one another. Neither has backed down on trading with the other yet; however, if they do, India stands to gain tremendously from this trade war. While India already makes $32.8 billion in international exports, only $2 billion of those exports are to China. America’s exports to China total to $20.4 billion. India could move in on this business to China and the United States and make billions more on their exports than they do at the present.
The trade war began with an investigation into Intellectual Property. Its importance in this cannot be overstated. It was the straw that broke the camel’s back, the last straw. To think that intellectual property, or a fight over it, can cause all of this. However, all of this leaves the door open for India to profit from this trade war. While China will still get its exported goods from somewhere, the origin of these exports may change, that is if the trade war continues.