As a beneficiary of the Sino-US confrontation, India's economic growth mainly depends on attracting foreign investment. However, the détente between China and the United States has led to the withdrawal of US companies, and even Chinese companies have stopped investing in India. What is the reason for the tension between China and India, which makes Chinese companies' investment plans in India change frequently?This article will look at this issue from different angles.
India has always been seen as a huge investment hotspot, but this is not the case. Recently, a number of India** reports that Chinese companies have given up their original plans to invest in India$300 million and transferred the funds to Vietnam. It is worth noting that the Chinese company Luxshare Precision is Apple's main OEM, and its previous investment in India was to follow Apple's industrial chain. However, India's xenophobic attitude towards foreign investment, cumbersome procedures and difficulties in entering the country for senior executives of multinational companies have caused Chinese companies such as Luxshare Precision to withdraw their investments.
India has always been regarded as a country full of opportunities, with a huge demographic dividend and abundant land resources. However, India has not been able to make progress on the road of economic development. Not only the withdrawal of foreign-funded enterprises, but also domestic companies such as Xiaomi, vivo, and Honor have also been restricted and investigated by India, resulting in the plan that could have been developed in India to be stranded. India's attitude towards foreign investment has unnerved investors and cast a shadow over the development of the Indian economy.
India's arrogant attitude and internal and external contradictions have also become stumbling blocks to attracting investment. India, among the countries of the third world, shows a similar arrogance and arrogance as the developed countries. This attitude often makes it difficult for India to integrate into the globalization process and build mutually beneficial relationships with other countries. India's reluctance to take risks and its desire to enjoy the benefits it already has is markedly different from other countries' development paths.
Despite India's demographic dividend and abundant resources, the key to driving economic development is to build a strong industrial base. However, India's restrictions and unfriendly attitude towards foreign investment make it difficult for foreign investment to enter the Indian market, and it also makes it difficult for India to build a strong industrial base on its own. India's lack of courage to integrate into the world and its lack of determination to pay the price for development has hindered its own development.
The easing of Sino-US relations has made the United States look at a new battlefield, and India has become a target for the United States. In recent years, India's foreign exchange reserves have also fallen sharply as the value of India's richest man, Adani, has halved and overseas investors have sold off Indian financial assets, and the situation has become increasingly serious. The strategic goal of the United States is to contain the rise of China, and India, as the only country with a little bit of meat, is also under the attention of the United States. In addition, India's closed-door development model and the expectations of the United States for India have also caused India to lose many opportunities.
Although India has a huge demographic dividend, its internal problems and restrictions on foreign investment have caused India to lose many development opportunities. India's time is already running out, and the American butcher's knife has been raised. India needs to change its attitudes and policies if it is to integrate into the globalization process and usher in real development. However, the current situation in India does not look promising.
These are some reflections on the impact of the US-China confrontation on India's economy. It is hoped that it will lead to more discussion about the current situation and development prospects of India.