An article from the Economist discusses how China’s export of subsidized goods is posing a significant threat to manufacturing industries in developing countries, including India. As Chinese products flood these markets at extremely low prices, emerging economies are implementing import restrictions and tariffs to protect their domestic manufacturers.
India has been particularly proactive in this regard. It has launched anti-dumping probes into various products, including unframed glass mirrors and fasteners, to safeguard its small and medium-sized businesses. India has also filed the highest number of anti-dumping cases globally. In retaliation, China has allegedly been blocking India’s access to solar equipment, which is crucial for India’s renewable energy sector.
Despite the strained relations with China, many Indian officials recognize the importance of Chinese investment for the country’s manufacturing sector. However, India faces a dilemma: while it needs to protect its domestic industries from Chinese competition, it also relies on Chinese investments and technology to boost its manufacturing capabilities.
The article suggests that emerging markets are exploring alternative strategies to counter China’s export surge. One approach is to seek free trade agreements with other regions, such as the European Union, to access larger markets and reduce reliance on Chinese goods. Another strategy is to incentivize Chinese firms to establish local production facilities, as Thailand has done with Chinese battery manufacturers.
However, the article cautions that the success of these strategies depends on the sustainability of China’s export approach and the deftness of emerging economies’ policies. Some experts believe that China’s export surge cannot be sustained indefinitely, as production costs in other countries become more competitive. Others are skeptical, pointing to China’s ability to maintain this approach for the past 25 years.
The article highlights the challenges faced by emerging markets such as India in navigating the complexities of China’s export subsidies and protecting their domestic manufacturing industries while balancing the need for Chinese investment and technology.
Last updated: December 26th, 2025
