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Rutuja Nigam made post

I am told that weak Yuan will lead to dumping by China. Is that correct?

Answer
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2 years ago


Ask any manufacturer of steel or tyres about their biggest business worry and it would obviously be China. Helped by government subsidies, China has been able to manufacture most of the above products at much lower cost than India. For example Chinese tyres are 30% cheaper than Indian tyres and they already have a 25% market share of truck radials in India. Devaluation of Yuan will make these Chinese tyres cheaper and their market share larger. Similarly companies in the steel and heavy machinery segment have been badly hit by cheap Chinese imports. They could see a visible dip in their market share.