According to reports from the Tribune and WION TV channel, Indian customs officials intercepted a Maltese-flagged container ship on January 23. The cargo ship was originally scheduled to sail from China to the Port of Karachi in Pakistan. On Saturday (March 2), Indian officials confirmed the incident and claimed to have seized a batch of “dual-use” goods.
In response, Pakistan’s Ministry of Foreign Affairs stated that relevant reports reflected the Indian media’s habitual distortion of facts. The Chinese Embassy also responded.
It is reported that this container ship is the “CMA CGM Attila” built by CMA CGM in 2011, with a capacity of 8,721 TEU and flying the Maltese flag. The ship is deployed by CMA CGM on the AS1 route, and the AS1 route domestically calls at Qingdao , Shanghai, Ningbo, Shenzhen Shekou and many other important ports.
Information on the detained goods released by the Indian media showed that the detained goods weighed 22,180 kilograms, including computer numerical control equipment produced by an Italian company. According to the Tribune, a team from India’s Defense Research and Development Organization (DRDO) inspected the device and concluded that it could be “used to manufacture key components in Pakistan’s missile program.” A spokesman for the Ministry of Foreign Affairs of Pakistan issued a statement on the 2nd, saying that the incident was very simple. “A commercial lathe was imported by a commercial entity in Karachi that serves the automotive industry in Pakistan. Parts and components are provided. The specifications of the device clearly indicate that it is for purely commercial use. Pakistan condemns India’s use of high-handed measures to seize goods.”
A spokesperson for the Chinese Embassy in India said in an interview on March 3 that the embassy has noticed the relevant reports and is verifying their authenticity. As a responsible major country, China has always strictly implemented its international non-proliferation obligations and relevant international commitments. Speculative reports and irresponsible insinuations are not constructive.
In fact, this is not the first time that Indian port officials have seized goods shipped from China to Pakistan.
According to Indian media reports at the time, the Chinese cargo ship “Da Cuiyun” docked at Kandla Port in India on February 3, 2020, with its destination being Karachi. But then Indian customs and intelligence agencies seized what they said were “sensitive materials that may be used for military purposes” on the ship. A spokesperson for the Chinese Ministry of Foreign Affairs stated on March 5, 2020 that as a responsible major country, China has always strictly implemented international non-proliferation obligations and relevant international commitments. It is understood that the goods in question are “heat treatment furnace shell systems” produced by a Chinese private enterprise. They are not military supplies at all, nor are they dual-use items subject to China’s non-proliferation and export controls. The Chinese merchant ships and cargo owners have made truthful declarations to the Indian competent authorities in advance, and there was no concealment or false declaration.
India’s plan to abolish the low-tax principle will bring challenges to Chinese companiesAccording to the latest news, the Indian Ministry of Finance will announce that from January 31 to February 2024, The federal budget meeting held on the 9th will consider canceling the low-tax principle in India’s anti-dumping investigation. If passed, this change will no longer calculate the extent of damage separately, but directly use the dumping margin as the anti-dumping tax rate. It is worth noting that India considered the possibility of abolishing the low-tax principle in 2019, but failed to reach a consensus. It is on the agenda again this year. If passed, the relevant laws will be revised and applied to new anti-dumping investigation cases. Given that most cases in India are settled with a low degree of damage, if the low-tax principle is abolished, the dumping margin will inevitably increase significantly, which will have an adverse impact on Chinese companies in the Indian market.
In the past, the application of the low-tax principle allowed companies to obtain relatively low anti-dumping tax rates with low damage levels. The abolition of the low-tax principle will make the dumping margin the final basis for taxation, increase the actual level of taxation, and impose a greater burden on Chinese companies in the Indian market. Chinese companies may face a more severe competitive environment in the Indian market, and rising tax levels may make their products more expensive in India, correspondingly weakening market competitiveness.
India’s foreign trade data in January 2024Data released by the Indian Ministry of Commerce and Industry on February 15, 2024 shows that in January 2024, India’s total exports of goods and services were approximately US$69.72 billion, a year-on-year increase of 9.28%, of which goods exports were US$36.92 billion, a year-on-year increase of 3.13%, service exports were US$32.80 billion, a year-on-year increase of 17.14%; total goods and services imports were approximately US$70.46 billion, a year-on-year increase of 4.15 %, of which the import of goods was US$54.41 billion, a year-on-year increase of 2.99%, and the import of services was US$16.05 billion, a year-on-year increase of 8.23%.
India’s trade deficit may improve in fiscal year 2024According to India’s “Economic Times” report, India’s fiscal year 2024 so far (April 2023) By January 2024) the trade deficit was US$206 billion, down from US$229 billion in the same period in fiscal 2023. In January 2024, India’s goods trade deficit narrowed to US$17.5 billion, a nine-month low. During the same period, the service trade surplus reached US$16.8 billion, higher than the US$16 billion in December 2023. Indian macroeconomic experts predict that as the foreign direct investment (FDI) situation improves (�(Estimated to reach US$21 billion in fiscal year 2024), oil prices have stabilized, and India’s trade deficit has declined. India’s current account deficit in fiscal year 2024 is expected to be approximately US$47 billion, which may be less than 1% of gross domestic product (GDP). As of February 9, 2024, India’s foreign exchange reserves were US$617 billion. At the same time, due to the Indian central bank’s foreign exchange controls, the rupee is less likely to appreciate significantly against the US dollar, and the exchange rate range is expected to be 82.80-83.20. </span
