$86 billion investment reached, India says no to Chinese companies!
India reached an agreement with Chinese companies to secure a total of $86 billion in investment.
In 2014, it was launched in India"Made in India"The project has attracted a large number of Chinese entrepreneurs to invest. In the beginning, the dependence of Indian companies on China's ** chain was not very high.
After the start of the global market order, European and American countries began to panic about China's industrial chain, and after the introduction of chip regulations, American companies were severely restricted from investing in China, and then the Biden team launched a series of restrictive measures until all companies that cooperate with American technology were restricted.
In addition, India's attitude towards Chinese companies has changed, with a scrutiny of Chinese companies' investment plans since 2021, followed by a resurgence of "local production" and the rejection of Chinese companies on the grounds that the formalities were incomplete.
The most famous example is undoubtedly the freezing of Xiaomi's 48 billion yuan in assets and BYD's 1 billion yuan investment. It looks like the collaboration between these two world-class companies has gotten into trouble, and India has not realized what it is doing wrong and has taken bigger action.
All this, of course, is based on the minimum level offered by the United States. Despite India's return on investment of up to 50%, Apple has not given up its plan to invest in India, but has promised to increase production capacity and provide a rich chain for Indian manufacturing companies, which has greatly increased India's manufacturing confidence and no longer relies on China's industrial chain.
In India, Chinese companies have established a relatively complete ** chain, although it is not perfect, but it has played a huge role in industrial upgrading. India's current bridge has also been interpreted by experts as"Take the opportunity to lay eggs"。
As of 2024, semiconductor companies from Japan, South Korea and the United States have signed preliminary cooperation agreements in Gujarat, India, involving 58 companies with a total investment of 86 billion yuan, marking that the center of gravity of the Chinese mainland market has shifted to India.
At first glance, this may seem bad for Chinese companies, but when you think about it, it's not necessarily a bad thing. The relatively spontaneous laws and regulations in the Indian market are probably only tolerated by Chinese companies, and European and American companies pay attention to profits and advocate free operation.
If India completely withdraws from the ** chain built by China, India will pay a high price, and European and American companies will not encourage you to build from scratch, which is similar to what Modi proposed"Made locally"The idea is the opposite.
Suppressing Chinese companies and introducing European and American capital in an all-round way is an obvious historical lesson, and India is certainly well aware that for decades, there has been almost no monopoly in China's ** chain, and the Modi team certainly knows what to do.
For Chinese companies, India is not an ideal place to do business, although it is densely populated, and if the business environment continues to deteriorate, there is certainly no need to fight to the death, and once all Chinese companies pull out, India will be unlucky.
With this $86 billion investment deal, the Indian economy will continue for some time, so Chinese companies will have to be more cautious when investing in India, what do you think?