Does importing from China really pays off?
By Nirjala Khanal, KATHMANDU: Chinese market is becoming increasingly popular among traders and consumers across Nepal. Chinese imports are in part responsible for thriving retail businesses, some local experts question the effect that these goods have on the economy. Nepal’s trade deficit is expanding because of the growing number of cheap, low-quality imports, the lack of little domestic production, and China’s export duties on certain Nepalese goods, experts say.
Well, China and Nepal surely have friendly relationship since ages, but let us not forget slowly and steadily they are capturing our local markets, influencing our youngsters and most importantly, harming our local producers financially. One of the shopkeeper from Thamel, said, “ Nowadays, Thamel looks so different and often our people are fascinated by Chinese products than local ones. Even tourists from other parts of the world have started buying Chinese products, as they are much more cheaper. We might have to shut down our businesses if it continues to give us losses. “ However, Nepal’s working class and growing middle class are taking advantage of Chinese imports, says Rameshowr Khanal, former secretary at the Ministry of Finance. After buying cheap clothing or electronics, they spend their surplus money on health care, education and other services, he says.
Nepal’s economy is growing faster than in previous years, according to the World Bank. But its trade deficit is also widening. While imports increased at an annual rate of 5.5 percent between 2010 and 2015, exports decreased at an annual rate 1.7 percent during those years, according to the Massachusetts Institute of Technology’s Observatory of Economic Complexity.
Published Date: Sunday, November 17th, 2019 | 10:40 AM