China's economic warfare against India—its tools, impact, and comprehensive countermeasures that India must adopt to safeguard its economic sovereignty and strategic autonomy.

 Below is a detailed analysis of China's economic warfare against India—its tools, impact, and comprehensive countermeasures that India must adopt to safeguard its economic sovereignty and strategic autonomy.

China's Economic Warfare Against India: Analysis and Countermeasures
I. Strategic Intent Behind China's Economic Warfare
China views India as its primary long-term geopolitical competitor in Asia. With India poised to overtake China in terms of population and steadily catching up in GDP growth, defense capability, and global partnerships, Beijing aims to retard India’s rise through a hybrid economic war — combining overt pressure with covert disruption.

II. Tools of Chinese Economic Warfare
1. Supply Chain Disruption
China remains a dominant supplier of rare earth elements, APIs (pharmaceuticals), and electronic components.

During border standoffs (e.g., Galwan 2020), China slowed or halted exports to India, causing production delays.

2. Withholding Critical Industrial Inputs
Temporary bans or slow customs clearances of Indian imports of semiconductors, solar modules, and machinery components.

Example: Restrictions on key raw materials like Active Pharmaceutical Ingredients (APIs) used in Indian generics.

3. Dumping & Unfair Trade Practices
China floods Indian markets with below-cost steel, electronics, and chemicals, harming Indian manufacturers.

Exploits rules of origin loopholes in FTAs (e.g., via ASEAN countries) to bypass tariffs.

4. Disruption of Indian Shipping
Deliberate delays or inspections of Indian containers and cargo in Chinese ports.

Use of non-transparent customs protocols to block Indian shipments.

5. Currency Manipulation
Artificial devaluation of the Chinese Yuan to maintain export advantage.

This hurts Indian exporters by making Chinese goods cheaper globally.

6. Under-Invoicing & Illegal Trade
Massive under-invoicing of Chinese imports causes revenue loss and market distortion.

Use of third-country smuggling (e.g., through Nepal, Myanmar) to evade Indian tariffs.

7. Cyber Economic Warfare
Cyberattacks targeting Indian financial institutions, power grids, and tech companies.

Example: Malware in Maharashtra power grid post-Galwan clash.

8. Weaponization of NGOs & Activists
Chinese proxies fund anti-industry agitations (e.g., protests against nuclear plants, mining, railways).

Use of front NGOs to amplify environmental or tribal rights activism, stalling large-scale infra projects.

9. Judicial Warfare (Lawfare)
Supporting legal activism to block Indian infrastructure or manufacturing projects on environmental grounds.

Filing frivolous litigations through proxies to delay project execution.

10. Intellectual Property (IP) Theft
Cyber-espionage to steal trade secrets of Indian pharma, defense startups, and software companies.

Targeting R&D units and patent-filing Indian firms via hacking.

III. Additional Methods China May Employ
11. Academic and Research Infiltration
Funding Indian think tanks, universities, and tech incubators to influence narratives and acquire data.

12. Capital Market Disruption
Sudden pull-out of FDI or stock investments by Chinese firms to create volatility in Indian markets.

13. Data Colonialism
Exploiting Indian user data through apps and tech companies (before the ban on apps like TikTok, etc.)

14. Psychological and Media Warfare
Use of Indian media or YouTube influencers to undermine national economic confidence, portray India's growth as unsustainable.

IV. Strategic Countermeasures India Must Take
1. Strategic Decoupling
Diversify supply chains for critical goods (electronics, APIs, semiconductors).

Develop trusted trade partnerships (QUAD Supply Chain Resilience Initiative).

2. Enhanced Trade Defenses
Impose anti-dumping duties on Chinese imports.

Tighten rules of origin verification to stop FTA abuse.

3. Investment Regulation
Strict FDI screening from neighboring countries, especially in strategic sectors.

Block hostile acquisitions by Chinese firms in startups or distressed Indian companies.

4. Customs and Border Controls
Strengthen customs intelligence to crack down on under-invoicing and smuggling via Nepal, Bhutan, Myanmar.

Monitor Chinese shell companies in Indian trade and logistics.

5. Cyber Resilience Framework
Strengthen cyber command units and civilian infrastructure protection.

Partner with Israel, USA on cyber-defense tech for economic sectors.

6. NGO and Information Monitoring
Audit foreign-funded NGOs, especially those involved in environmental litigation or mass mobilization.

Identify Chinese digital propaganda and disinformation networks.

7. Judicial Safeguards
Create fast-track courts for strategic projects to prevent unnecessary delays.

Judicial review mechanisms for vetting foreign-funded litigations.

8. IP Protection Measures
Promote indigenous R&D and implement IP law enforcement for startups and MSMEs.

Incentivize companies to secure patents and shield trade secrets.

9. Economic Intelligence Unit
Set up a dedicated Economic Threat Monitoring Unit under NSCS or MEA for monitoring covert Chinese moves.

Use big data and AI to predict vulnerabilities.

10. National Economic Security Doctrine
Integrate economic security as part of national security policy.

Create a doctrine that guides diplomatic, military, and economic response to economic warfare.

V. Conclusion
China’s strategy to throttle India’s economic ascent is long-term, multi-domain, and deceptively covert. India must recognize this economic warfare as part of China’s larger grey-zone conflict strategy. A whole-of-government and whole-of-nation response — combining defense, diplomacy, technology, judiciary, and civil society — is essential.

Economic sovereignty in the 21st century is as critical as territorial integrity. India must act now — decisively and innovatively — to shield itself from China's covert war on its economy.