New Delhi: A report on Economic Times, citing internal sources has it that the government has cleared some electronics manufacturing investment proposals involving Chinese companies or companies with links to China.
The move, if true, signifies a loosening of what the Narendra Modi government had claimed would be a strict policy around Chinese products and Chinese involvement in the Indian economy. The Indian government banned over 200 Chinese apps in the aftermath of deadly border clashes between the two countries in 2020 in which 20 soldiers died. New Delhi also said that India will not allow Chinese companies to participate in highway projects, including through joint ventures.
However, in the meantime, satellite images have purported to show China’s ingress into Ladakh and Arunachal Pradesh, with opposition repeatedly calling for the Modi government to take the nation into confidence on the situation with China.
According to the report, an inter-ministerial panel has approved “five to six” proposals including from Apple vendor and Chinese electronics major Luxshare, and a joint venture between between Bhagwati Products (Micromax) and Huaqin Technology, in which the Chinese company will own a minority stake.
Other proposals cleared include some Taiwan-based firms listed in Hong Kong or having investments from there, the report says.
“Some are Taiwanese companies which have one beneficial owner who has some interest in Hong Kong or is listed on the Hong Kong exchange while a few are genuine Chinese firms,” an anonymous official is quoted by ET as having said.
The report notes that there is pressure from the electronics manufacturing industry to approve investments with Chinese links as well.
In submissions to various ministries, the electronics manufacturing industry had also said that India had lost out on export opportunities worth $10 billion as well as $2 billion in value addition, the report added.
In February this year, India opposed a proposal led by China on investment facilitation at the World Trade Organisation, stating that it is a non-trade issue. A China-led group of over 120 countries has pushed for an Investment Facilitation for Development Agreement (IFD) proposal to become part of the WTO.
