Decoupling from China
Yesterday’s post ( China+1...rhetoric apart ) evoked a rather aggressive response from some readers. They strongly disagree with my skepticism about China+1 strategy, at least in the short term (5-7yrs). Some of them claim to have already witnessed the stupendous results of this strategy for many Indian corporations. Since my posts are mostly my personal views and observations, criticism does not affect me. I usually politely agree to disagree. I would thus avoid responding to criticism or the views to the contrary. Nonetheless, I may reemphasize my views as follows: · In the short-term (5-7 yrs) any business or investment strategy that assumes substantial decoupling of China from India’s trade specifically, and Western countries in general, may not be successful. · Presently, China+1 trade is confined to a few businesses (not sectors), where (i) China has explicitly implemented capac...