Wal-Mart, Ford, Nokia, Google, Amazon, Samsung, Chinese mobile phone manufacturers began to enter India in 2014, hoping to open up India's large market of more than one billion people outside China, and the fact is that mobile phone companies have made extraordinary achievements as expected, with mobile phone sales exceeding 2 billion between 2014 and 2011, and four Chinese-funded mobile phone companies accounted for 56% of the Indian market in 2022 , going to India is undoubtedly a success.
However, when the Chinese-funded enterprises successfully began to reap the profits, the Indian tax department finally showed a big stick and demanded that OPPO India pay 5$5.1 billion tariffs, seizure of 4.8 billion yuan from Xiaomi India for illegal transfer of funds, and also required Chinese mobile phone companies to let Indians serve as executives, cede controlling stake to Indian capital, and India's consistent fattening and slaughtering model, Chinese companies have finally experienced the nightmare of European and American companies, a trick to close the door and beat the dog has been tried repeatedly, at least 500 Chinese-funded enterprises are being censored by India.
According to official data from India, between 2014 and 2021, a total of 2,783 foreign companies withdrew from India, the number of foreign capital registrations in India dropped from 216 to 63, and only 5,068 foreign-funded enterprises remained. Even if the data is so bleak, it does not affect India's mode of dealing with foreign investment, Chinese investors say that India can only develop by improving the business environment, purely from the perspective of capital-seeking internationalism, and have not understood India's nationalist perspective at all, India fundamentally does not welcome foreign investment, and the introduction of foreign capital is only to develop local enterprises.
1. The nature of China's internationalist spiritual capital is to pursue profits, from high-risk countries to low-risk countries, from low-return countries to high-return countries, China gives foreign investment tax incentives for economic development, and foreign capital not only gets cheap taxes, but also takes a fancy to China's huge market, and has the advantage of cheap labor costs, and obtains huge profits. It is said that the Chinese side of the joint venture deliberately helped foreign capital to lower wages, precisely because it wanted to get the most lucrative profits, in short, attracted a huge amount of foreign investment, and objectively helped China become the world's factory.
Chinese capital is the same as capital, whether state-owned enterprises or private enterprises, are greedy for profits to invest in foreign countries, but China's own tolerance of capital makes Chinese enterprises ignore the risk of investing abroad, after all, domestic labor laws have not been strictly enforced, and the average weekly working hours per capita have reached 481 hour, a 20-year high, far ahead of any other country. Chinese capital is actually a spoiled child in China, and when it encounters a country like India, which is deliberately embarrassed by digging a good pit, all the profits generated by the ten years of operation will be punished, and it will be in a dilemma.
Not only do Chinese companies have little return in India, but also in many parts of the world, investing in large quantities without understanding the national conditions is equivalent to selfless dedication to the host country, and has become a lofty but useless internationalist spirit.
2. Nationalism in India.
India was colonized by the British for 190 years, from a rich agricultural country, was looted into the poorest country, India is a bitter hatred of foreign capital, that foreign capital is plundering domestic wealth, set very high conditions for foreign capital, in order to prevent foreign capital from making money, not specifically for Chinese-funded enterprises, but to treat all foreign capital fairly, tolerant only for India's national enterprises.
India is very skewed in terms of the law, after all, it is very difficult to fire an employee in India to get the vote in the hands of the workers, and it takes 17 years for a boss to fire an employee who is caught sleeping at work, and it takes 24 years for a boss to do it.
India has always hoped to use foreign capital to develop Indian manufacturing, and China can learn from China's industrialization experience precisely because the world's factory has become the most technological and powerful party. India first attracted Chinese-funded mobile phone companies with preferential policies, and then increased the proportion of parts tariffs to gradually localize the parts of the industrial chain in India, and finally completely controlled the mobile phone industry in India.
India has the ambition of a big country, does not want foreign capital to control the local industry, and even does not want foreign capital to take the profits back to the home country, although the means are despicable, but it is also the inevitability of Indian nationalism, India does not seek foreign investment, but foreign capital is interested in the Indian market and labor, there will always be capital eager to try, completely different from the original China vigorously introduced foreign capital, to accelerate the economic development model.
3. Getting acquainted with each other and retreating may be the best choice.
India arrested two Chinese employees of Vivo, CEO and CFO, on charges of money laundering. In response to India's embarrassment for Chinese-funded enterprises, the glory team withdrew from India, which is the best choice for chicken ribs, India refused to give business visas to employees of Chinese-funded enterprises, but some enterprises flexibly went to India to work on tourist visas, and this kind of desperate spirit of going to India to develop business can only be given to them the reputation of "Indian internationalist friends", which can match their selfless dedication to the internationalist spirit.