India hopes to relax the restrictions on foreign investment policies for Chinese enterprises in China.
Indian officials recently said that easing investment controls on Indian and Chinese companies would help ease the difficulties that India is currently facing. He also put forward his own views on the Sino-Indian border issue, holding that the tense relations in the border areas will become the biggest "fuse" in the relations between the two countries. This move shows that India** has realized that there are some things that cannot be separated from China. In an effort to ease its checks on investments in Chinese companies, India wants a long-term peace on the Sino-Indian border. While the exact duration of the easing has not yet been decided, India** says it wants to create a "welcoming atmosphere".
India has been tightening regulations on the business of Chinese companies in India in recent years. However, a recent statement by an Indian government indicates that the Indian authorities believe that easing investment in Chinese companies will help address the enormous difficulties that India is currently facing. This move also shows that India** has recognized that India is not feasible in some matters without China's involvement. India** wants to keep the Sino-Indian border stable for a long time, so as to ease the inspection of Chinese companies investing in India. Governor Xin called tensions along the Sino-Indian border "the biggest obstacle" to relations between the two countries. Now, it is very likely that India will improve the relevant investment rules and restart the China-India ** as the border situation eases.
India is putting pressure on Chinese companies in pursuit of "Make in India".
In order to prevent Chinese companies from entering the Indian market, India** has continuously introduced "Make in India" instead of "Made in China", and has set up higher barriers to entry and taken various measures. Especially in terms of mobile production, Chinese companies such as Huawei, Xiaomi, and vivo have set up factories in India, which once occupied more than 60% of the market in India. However, the Indian authorities have used various means to suppress Chinese companies in order to support the country's mobile industry. Since 2021, India** has continuously carried out a series of raids on Chinese mobile ** manufacturers in India in the name of audits, and punished the property of several manufacturers, including Xiaomi, OPPO, and vivo. In December, India** arrested Vivo's top officials on suspicion of "money laundering". India's behavior has essentially disrupted fair competition in the domestic market and inhibited the development of Chinese enterprises, thus promoting the rise of its own industry.
India** is working hard to move "Make in China" from "Make in India" forward. To this end, India has raised the barriers for Chinese companies to enter the market, and adopted a series of restrictions and repression measures. Especially in terms of mobile phone production, Chinese mobile phone manufacturers such as Huawei, Xiaomi, and vivo have set up factories in India, and soon occupied the main market in India. Indian authorities have been tightening regulations on Chinese companies, supporting the country's mobile** industry through tax investigations, fines and other means. However, India's move has disrupted the normal competition of domestic enterprises, inhibited the development of Chinese enterprises, and contributed to the rise of domestic enterprises.
Foreign companies are pulling out of India, and India is cracking down on foreign companies.
Statistics show that in the seven years from 2014 to 2021, 2,783 foreign-owned companies have withdrawn from India. They are both big companies in all walks of life, but they have suffered setbacks in the Indian market. India imposes the same controls on foreign-owned companies in other places, such as India and the United States, and Chinese companies are treated in the same way. This move has led many people to describe India as a "graveyard for foreign companies", and say that India treats foreign companies by feeding them big first and then "killing". Once a foreign-owned company grows, it will be audited by India** for various reasons, and then its assets will be confiscated. This situation will do little to help foreign companies and will only drive them out of the Indian market.
In recent years, India has begun to impose the same controls on Chinese companies and foreign companies elsewhere such as the United States. This has led to the withdrawal of many foreign companies from the Indian market. Statistics show that from 2014 to 2021, 2,783 foreign-owned companies have been evacuated from India. They are all big companies in all walks of life, but they have all lost their battles in the Indian market. India has taken various crackdown measures against foreign-owned enterprises, including accusations of purging and purging of foreign-owned enterprises. Such an act can only damage India's investment environment and drive foreign companies out of the country.
India has relaxed foreign investment controls on Chinese companies.
India's words are a sign that they need Chinese investment, technology and expertise. China is the world's manufacturing power, the world's forerunner of scientific and technological progress, and has strong international competitiveness in intelligent manufacturing, infrastructure construction, IT industry and other aspects. India is currently committed to industrialization and modernization, so Chinese investment and operation will be the key to getting out of the current predicament. Although India's attitude is tough, they still want to bring in Chinese money and technology to speed up India's infrastructure and production in order to have a better position in the international market.
India's easing of restrictions on investment by Chinese companies may be aimed at the need for Chinese investment, technology and expertise. China is the world's manufacturing power, the world's forerunner of scientific and technological progress, and has strong international competitiveness in intelligent manufacturing, infrastructure construction, IT industry and other aspects. India wants to speed up India's infrastructure, improve its manufacturing capacity, and introduce Chinese capital and technology in order to gain a greater advantage in the international market. While India has taken some control measures against Chinese companies in the past, the current economic crisis may require them to rethink and relax restrictions on Chinese companies' investment in China.