An article in China's state-owned Global Times on August 10, 2017, expressed concern that India, which it described as "a rising star in the world's manufacturing arena ... but still 10 years behind China" "has grown increasingly attractive to overseas investors in the manufacturing sector. ... " could impose restrictions on Chinese companies. It said "Although backward infrastructure and an unfavorable investment climate may increase costs, foreign-based manufacturers can avoid import tariffs by localizing production and sales. Thus, made-in-India products are likely to have some advantages over their Chinese counterparts, and they could also be conducive to narrowing India's trade deficit with China". It observed that "many Chinese companies such as telecom equipment maker Huawei have announced plans to establish manufacturing facilities in India ..." adding that "Made-in-India products don't necessarily have to be produced by domestic enterprises. For instance, Huawei smartphones made in India should enjoy the same treatment as local products because the Chinese company can create jobs and generate tax revenue for the local economy. It is possible for India to catch up with China in terms of production and cut its trade deficit with China in the next 10 years, but the horizon will recede indefinitely into the future if India metes out unfair treatment to foreign-based investors and relies simply on domestic enterprises to turn itself into a global manufacturing hub".
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