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Topic Reading-Vol.3000-6/28/2020

Dear MEL Topic Readers,
China and India need each other. Just look at technology
After a cross-border military conflict that left 20 Indian soldiers dead this month (Vol.2995), the Indian government announced that it will scrutinize direct investment from neighboring countries more carefully, obviously targeting China as other surrounding countries don’t have such investment arms. It is apparently part of India’s responses of rising anti-Chinese sentiment.
However, China is the second-largest trade partner after the US for India and exports more goods and services to India than any other country. Also, China is now the largest investor to India’s tech industry. Take smartphones for example. In 2019, all the top five best-selling smartphone makers in India, save Korea’s Samsung, were Chinese: Xiaomi, Vivo, Oppo and Realme, all of whom have manufacturing facilities in India. Also, Chinese investors have shares in more than half of India’s 30 private firms whose respective net worth exceeds $1 billion.
While the tension over the border is rising, mutual dependence has already developed to an inseparable level between the two giants.
Enjoy reading the article and think about how much today’s supply chain and economic reality affect bilateral relationships.
Lastly, but not least, thank you for reading this 3000th issue of Topic Reading.

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