China has unmatched industrial prowess but is undemocratic: Rahul Gandhi

Leader of Opposition in the Lok Sabha Rahul Gandhi on Saturday said China has developed a “superb and unmatched” industrial production system but criticised the neighbouring country for being “coercive and undemocratic”.

Interacting with members of the Information Technology (IT) fraternity at Technopark in Thiruvananthapuram, Gandhi said China has come to dominate global industrial production while the United States, India and much of the world have largely focused on the consumption side of the economy.

He said that in his view, most employment opportunities lie in the industrial production sector rather than the consumption space, including areas such as the IT industry.

“The disappointing thing is that we have allowed China to just capture it (industrial production),” Gandhi said.

“China has built a superb industrial system that is unmatched in the world. But we do not like their coercive system. We do not like the fact that they are not democratic,” he added.

He said that if India could build a strong industrial production system while retaining its democratic framework, it would serve both India and the wider world.

Concerns over technology and military power

Gandhi also said technological developments, particularly in batteries and electric motors, are increasingly shaping global military power.

He cited the Russia–Ukraine war and the ongoing conflict in West Asia as examples of how modern military capabilities are becoming linked to electric motors and battery technologies.

According to Gandhi, China currently dominates these technologies, while India, the United States and Europe lag behind.

“That is a huge problem,” he said.

He added that India has the scale required to shift from internal combustion engines to electric motor systems powered by batteries.

“We are the only ones with the scale to make that transition. The US and Europe, as far as circular mobility with electric motors are concerned, cannot compete with China anymore,” Gandhi said.

He expressed the view that with the right policy framework and strategic vision, India could challenge China in the electric mobility sector.

“I think that given the right policies, the right vision, India can compete with the Chinese in electric mobility circular motion. If we do that, we will create a large magnitude of jobs,” he said.

Criticism of business and GST structure

Gandhi also said that China currently enjoys an advantage in industrial production but added that he would like to see India emerge as a competitor in that space.

He said that only a small number of Indian businesses are engaged in industrial production.

“Most of the big businesses, like Adani, Ambani, do not produce anything. They sell products that damage our local production. We need to have an attitude of production,” Gandhi said.

He also argued that there is a political dimension to the issue.

According to Gandhi, the present structure of GST (Goods and Services Tax) is designed in a way that disadvantages manufacturing states.

“It basically kills producing states and helps consumer states,” he said.