Whenever a volcano erupts in the world, on one hand it causes loss of life and property, on the other hand the heat inside the earth cools down a bit. Many precious minerals and stones come out during volcanic eruption. Similarly, the paths of both destruction and creation open up whenever there is natural or diplomatic upheavals in the world. United States President Donald Trump is using Tariffs like ‘missile’ in his second term. He has imposed up to 245 per cent tariff on China and has paused reciprocal tariffs on more than 75 countries of the world for three months. In such case, President Trump has pressed the reset button of business relations in the world by starting the tariff war. Every small and big country in the world is trying to give a new shape to diplomatic and business relations according to their profit and loss. Now, India with a population of 1.4 billion is also on the same path.
After the initial shock of Trump tariff, Indian stock market has now recovered. Several notable economists have declared Trump’s tariff war as harmful for America and a big opportunity for India. How long can the trade war between the US and China last? Is there any scope for agreement between Donald Trump and Xi Jinping? Where are the opportunities for India in Trump’s tariff war? Is the country with the youngest population in a position to hit four? Where are the speed breakers in the way of India for becoming a manufacturing hub like China? What does our workforce need to learn from China to become the factory of the world?
When Will The Trade War Between The US-China End?
Economists and diplomats around the world are constantly discussing how long the ongoing trade war between the US and China will last and when will it end? Donald Trump is a very smart businessman. He is a deal maker. He knows very well how to pressurise others. Trump also understands very well what his supporters want to hear from him.
Recently, world-renowned investor and author Ruchir Sharma talked about Donald Trump’s work style during an interview. He stated that Trump is such a person who will quote his product of Rs 1 Lakh dollars as Rs 10 lakh dollars and later will agree on a deal of 1.5 lakh dollars after bargaining. The world will say that came down to Rs 1.5 lakh dollars from Rs 10 lakh dollars, but Trump sees his victory in turning Rs 1 lakh dollars to 1.5 lakh dollars. He knows it well that ‘Made In China’ product are vital part of American’s life. How much of its good does China dump in the US market every year? In such a situation, he increases the tariff on China to 245 percent.
Talks Between US-China On Cards?
Now the big question is what next? Trump said on Thursday that America is going to make a very good deal with China. China has also taken a step forward and appointed Li Chenggang as its new negotiator for talks with America. Chenggang has been a former representative of the World Trade Organization (WTO). This indicates that an atmosphere is being created for setting the table for talks between America and China regarding tariff. In such a situation, it will be interesting to see how much Trump brings down the tariff rate by reducing it from 245 percent? What kind of possibilities are there for India amidst the ongoing tariff war between the world’s number one and number two economies?
JD Vance In India
Amid the ongoing trade war between the US and China, biggest challenge for India lies in proving itself as an international player. US Vice President along with his wife and their children is visiting India. His meeting with Prime Minister Narendra Modi is considered certain. In such situation, speculations are being made about which issues will be discussed by the leaders.
But, if we look at Trump’s trade war from the point of view of economists, if America imposes 10 percent base tariff, then the US economy can slow down by 1 percent due to the side effects of trade alone. If the dollar weakens, it creates better opportunity for emerging markets. Similarly, if there is an outflow of capital from America due to the tariff war, then countries like India can benefit from it. This can also increase Foreign Direct Investment (FDI) in India. It is also believed that India can become the choice of big companies, if they want to avoid heavy tariffs levied on China. But, the big question is whether foreign companies will be able to get facilities like China in India? Will they be able to get an environment like China in India?
Impact Of Trump’s Tariff On Business Relations
Trump’s tariff war has in a way pressed the reset button in the world’s business relations. Multinational companies are also thinking where to set up factories to avoid tariffs. There is also deep deliberation on how China became the world’s factory and how it became the king of the world’s supply chain. What is it about China that makes it produce such cheap and better products? This question often comes before our country’s rulers, bureaucrats, economists and business tycoons. In fact, it is the people there, their hard work and their values that have made China the world’s factory.
How much difference is there in the working methods of employees in factories in India and China? Most of them answered that is ingrained the minds of the Chinese youth that they are not born with a silver. And, there is only one way to achieve whatever they want. It is hard work, hard work and only hard work. If they do not work hard, someone else will take their place. Discipline and dedication to one’s work is an important part of the culture of China’s workforce.
Most of them answered that it is ingrained in the minds of the Chinese youth that they are not born with a silver spoon, there is only one way to achieve whatever they want. Hard work, hard work and only hard work. If they do not work hard, someone else will take their place. Discipline and dedication to one’s work is an important part of the culture of China’s workforce. Most of the people in China don’t care whether someone is noticing their work or not, they are just focused in their work. The only way to measure how efficient they are is by how much product they can produce in the least amount of time and without any mistakes.
What Is Chinese Work Culture?
If you see the employees of big companies based in China working, it will seem as if they are not factory workers but trained soldiers of the army. Same type of uniform, meetings in less time and a complete mechanism for quality check of the finished product. Whereas, in our country’s factories or offices, the youth are not seen working in a disciplined manner like the arm. However, in the name of religion, caste, moral policing, preventing land encroachment, cow protection, the army is definitely seen, which takes our young generation under its spell and uses them. There is hardly anyone who wants to discuss how much society and the country benefits from it.
We want to become a manufacturing hub like China, but we do not talk about the values of their social fabric. In Chinese society, the emphasis is more on collectivity than on the individual. From school to college, it is ingrained in the minds of the youth that team’s success is much bigger than individual success.
To achieve team’s target collectively is the USP of the Chinese culture. Hence, hierarchy is of great importance in the institutions there. The employees of China follow the hierarchy with discipline and respect. Most of the employees do not question the fixed SOP i.e. Standard Operating Procedure; rather they consider it their duty to follow it. If someone has any issue or wants to raise question, then the talks are held in private space and not in public. Similarly, the appreciation of someone’s work is also done in public and his flaws are pointed out in private. This helps in maintaining trust between the team leader and employees.
China Is Facing Severe Unemployment
Most of the senior employees working in Chinese factories think more about how 10 people can complete the work of 50 people with the help of technology. China’s specialty is in accepting new technology and making new products according to the needs of the market. Till a few years ago, 996 culture was very popular in China, that is, work from 9 am to 9 pm, 6 days a week. Work in Chinese factories means only work. Not like most offices in our country, where employees go out for tea and cigarette breaks many times during an 8-hour shift. Additionally, they waste a lot of time gossiping during lunch, some even spend most of their time in playing meetings.
In most offices and factories, individual and collective output is rarely honestly considered. China became the world’s factory because of its work culture. But today’s China is struggling with severe unemployment. In such a situation, the Communist government of China is asking people to work for 8 hours only to provide employment to more and more people. Steps to stop overtime are being taken, but the habit of working for long hours has become a part of the DNA of China’s workforce. They need more money to fulfil their needs. Working for longer hours is both necessary and a compulsion to remain in the job.
In such a situation, Indian youth have a lot to learn from China’s work culture. India will be able to take full advantage of the turmoil created by Trump’s tariff war only when our youth will understand the Karmayoga of Shrimadbhagwat Gita and, like the youth of China, will implement it in their daily lives from home to office.
Also Read: Navigating The US-China Trade War – Which Path Will India Choose? Explained
