In an interview to Chinese publication, Global Times, Charles Liu, a senior fellow at the Taihe Institute has come out with a heavily critical and potentially controversial statement against Tesla's plan to build a manufacturing unit in India.
It was just last week, that after policy changes to attract electric vehicle manufacturing from the Indian government, that the largest EV manufacturer in the world, commissioned few of its associates to visit potential sites for construction of the manufacturing in the state of Gujarat.
'India Lacks China's Advantages'
According to Liu, it is 'unfortunate' that Musk's marquee company is investing in building a system in India. Liu largely focused his critique on the supply chain network, where China, according to him, is ahead, and India lacks in its capabilities. Liu also reprehended the critical infrastructure in India, which according to him is 'poor'.
He also invoked issues concerning policy making, as he claimed that the business environment in India is 'negative'. Most importantly he claimed, that Human Capital in the country was not up to the mark and is not as good as China's, as it ostensibly lacked skilled workers and engineers, who are needed to crucial role in such facilities.
He also claimed the India was unable to frame policies felicitous for such businesses to flourish, and alleged that the Indian government has hounded foreign corporation in India through protectionist measures.
He also claimed the India was unable to frame policies felicitous for such businesses to flourish. | File
Where Does China Really Stand?
It is interesting to note, that this comes at a time, when China itself is stuck in quagmire of economic sluggishness, due to which its growth prospect have only been diminished. When its comes to other facets of direct comparison(s), that Liu draw, China's infrastructure and its vanity projects and its viability has long been questioned by many.
This, as many mega project have come up, being of no real use to region with either no significant population or prospect for growth. The economy still runs from its major cities, and people therefore are drawn to these cities. This phenomenon is not just limited to China, but is seen across South and South-East Asia.
Policy making is another point, that Liu touched upon. This is sticky wicket for China, even when compared to India. As one of the major reasons behind MNCs dropping out of China or slowly shunting or at least diversifying their operations away from China is oriented in its policy making and the negative impact of the protectionist Xi Jinping-led government at large.
Meanwhile, many Indians, who did not find merit in these claims, expressed their displeasure with Liu online.
This is also the time, when due to many factors, corporations are moving away from China, despite all its 'advantageous qualities' that Charles Liu highlighted. Despite all this, one cannot deny or reject the hegemony of China or PRC in the manufacturing business, as it continues to remain the factory of the world. And diversifying or moving away from the country would be gargantuan task.
