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Current Event on India sample essay

India is seeking information from China as to why their balance of trade is so skewed. China has been exporting to India far more than it has been importing. This scenario has been reflected globally, with many countries wondering why China has reduced their imports so much. China has also put a ban on Indian Iron Ore, their main export, causing more tension between the new countries. China professes to be increasing their trade annually, pulling them out of the worldwide recession, but many economists and financial experts, including some within China itself, are skeptical as to the legitimacy of these statements.

This article relates to our international economics unit that we just completed. China has put a ban on iron ore and slackened their rate of import of Indian goods, causing a problem in their balance of trade. The article was easy to follow and understand due to the lesson that we just completed on trade barriers. The article also shows how government as well as business has a role in promoting trade and controlling the amount of trade that occurs between specific countries.

I feel that China is being unfair to India by not granting them the information that they request. Refusing to trade with a country is one thing, but severely reducing trade without an explanation is uncalled for and suspicious. Their decisions regarding imports and exports affect a massive part of the world economy because of their economic strength. Their ban on Iron Ore from India is specifically detrimental to India’s balance of trade because of its dependency on the demand for iron ore as an export. With China being one of its largest consumers, this severely impedes India’s development. As an Indian economic analyst, I would be seriously questioning China’s intentions after this move.

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