The Indian government has launched a formal investigation into the price of China’s textile exports, accusingÃ‚Â fiveÃ‚Â Chinese firmsÃ‚Â of "dumping"Ã‚Â textiles intoÃ‚Â IndiaÃ‚Â below "fair market value."Ã‚Â Until the investigation ends,Ã‚Â India has introduced provisional tariffs on silk imports ranging from 57% to 116%.
This is yet another of the countless dumping allegations made against China each year. According to theÃ‚Â WTO, most of these accusations come from other developing countries with large textile manufacturing sectors who wish to protectÃ‚Â domestic producers fromÃ‚Â cheaper goods. As Chinese textileÃ‚Â exporting increases, more of these antidumping allegations can be expected.
If the Indian government finds that China’s textiles are indeed being sold below market value, it should thank these firms for making Indian consumers better off, not punish them by imposing unilateral import duties.Ã‚Â Punitive protectionist measuresÃ‚Â would onlyÃ‚Â hamper free trade between two countries that have exchangedÃ‚Â $18 billion worth of goods and services in the past year. Ã‚Â Ã‚Â