Trade war is escalating as Hong Kong, Chinese customs are holding off Indian export shipments

Trade war is escalating as Hong Kong, Chinese customs are holding off Indian export shipments

Exporters in India are worried as China and Hong Kong customs are holding back Indian export shipments amid tensions in eastern Ladakh between the two countries. Hostility arising from the India-China military standoff has now entered the economic corridors in both countries. This comes at a time when calls for boycott of Chinese products are rising across India with every hour passing by.

Export organizations have written about Hong Kong and Chinese Customs to the Ministry of Commerce holding back Indian export consignments. Documents assessed by India Today show exporters in their correspondence with the Ministry of Commerce emphasized that customs is physically inspecting all imports from China which has led to delay in clearance which adds to import costs.

Union Ministry of Finance officials told India Today that some containers could be kept up based on intelligence feedback and risk evaluation, which is a regular and ongoing exercise. It is an existing practice to keep containers or consignments on the basis of safety warnings until they are officially approved. The Indian government insists, however, that these delays have little to do with recent developments in eastern Ladakh.