India-China Border Conflict: Implications For Global Supply Chains

Heightened geopolitical tension between India-China poses challenges for trade and supply chains

Bilateral tensions have escalated between China and India following a border clash in the Himalayan Galwan Valley on June 15 that killed 20 Indian soldiers. The border standoff has triggered a wave of anti-China sentiment in India with calls for a nationwide boycott of Chinese goods and renewed efforts to promote domestic manufacturing alternatives in order to reduce India’s supply chain dependence on Beijing. In the midst of heightened tensions, the Indian government is planning to impose tariffs and stricter quality control rules targeting at least 370 products that can be locally produced and implement a severe lag in customs clearance for shipments originating from China, Hong Kong, and Macau across all Indian ports as well as air cargo terminals. In retaliation, imported goods from India have also been held back by Beijing at Hong Kong and Chinese customs.

This Resilience360 Special Report takes a closer look at the implications of growing calls for domestic protectionism in India and its implications on manufacturing and supply chain operations across major sectors including life sciences and healthcare, automotive and mobility, technology, engineering and manufacturing, chemicals, and energy.

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