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China's renewed push into high-tech exports, termed 'China Shock 2.0', has intensified global trade tensions and prompted several countries, including India, to implement anti-subsidy measures to protect their manufacturing sectors. Discuss the implications of China's export strategies on India’s trade dynamics.

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Category: Economy (GS -III),

Test Date: 30 Sep 2024

Approach:

  • Introduction: Define 'China Shock 2.0' and its relevance in the current global trade landscape. Briefly outline China’s focus on high-tech sectors and the reasons behind this shift.
  • Impact on India’s Trade Dynamics:
    • Increased Competition: Influx of Chinese high-tech goods affects Indian manufacturers, Vulnerable sectors (e.g., electronics, renewable energy)
  • Economic Implications: Employment Concerns, Investment Shifts. It may influence foreign direct investment (FDI) in India.
  • Suggest Strategic Responses
  • Conclude accordingly
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