The list of companies choosing India over China is significant and has been steadily growing, even before U.S. President Donald Trump won a second term in office. In 2024, dozens of major companies, including Dell, HP, Intel, Samsung, LG Electronics, Nike, Hasbro, Blizzard Entertainment, Stanley Black & Decker, and many more, have already relocated their factories to India or plan to do so in the near future.
That trend isn’t likely to change, either. According to a 2024 survey by the American Chamber of Commerce in China, 45 percent of U.S. companies in China have initiated plans to diversify their suppliers outside of China, while 38 percent are considering doing so.
What are China's Options?
- China is restricting machinery exports and equipment transfers to India
- Increase support for Pakistan
- Threatening India on its involvement with US in trade and defense
- Easing relations with USA
Will any or all of these potential (economic or political) countermeasures by Beijing be enough to sway New Delhi away from its tilt toward Washington? Will the Chinese regime be able to thwart India’s rise, even as its economy continues to collapse?
Not likely.
Highly unlikely because China is facing multiple problems of its own which needs to be addressed first. The biggest of them is an ageing +60% population and multiple sectors including real-estate and manufacturing are under recession. On top of that consumer spending is so sluggish that China is continuously trying to push it through financial aids, nothing seems to be working.
So, I agree.
China is facing a multi-front storm, mainly of its own making through the CCP’s policies, and that storm is only getting worse. To carry the metaphor, it’s a perfect storm against China and for India.