India raided 19 places, and actions against Chinese-funded enterprises were frequently staged, which left people with many questions. So, why does Modi frequently raid Chinese-funded companies? What are the reasons for this?
First of all, there is competition between China and India in the economic field, especially in the fields of high-tech industries and information technology. Aware of the competitive pressures posed by the rise of Chinese telecommunications companies and other manufacturing industries, India has taken action to crack down on Chinese companies. In order to maintain the development of its own domestic industry, India has chosen to protect its domestic industry by restricting and investigating Chinese companies.
Secondly, it is related to the Sino-Indian border dispute. On the Sino-Indian border issue, India faces the dilemma of not being able to bargain with China. Therefore, by targeting Chinese companies investing in India, India is trying to put pressure on China by controlling these companies in order to gain more leverage in the border dispute.
Third, India pursues international support and strategic cooperation. India hopes to rely on the support of countries such as the United States, Japan and Europe to develop its own manufacturing sector, seize some export-oriented industries, and assume a leading position in the Global South. In order to achieve this goal, India may resort to measures such as fines for foreign companies to attract international capital and enterprises to invest in India.
Together, these reasons have led to frequent raids on Chinese companies in India. Whether it's to protect local industries, exert pressure in border disputes, or pursue international support and strategic status, India has opted to impose severe restrictions and investigations on Chinese companies. However, in addition to the impact on Chinese companies, such actions have also brought uncertainty and negative impacts to India itself.
India's Modi** frequently raids Chinese companies, although ostensibly to protect local industries and safeguard national interests, such actions have brought a series of repercussions and problems.
First of all, this kind of restriction and investigation measures against Chinese companies has brought uncertainty and distress to Chinese character companies operating in India. Chinese enterprises have a long-term deep cultivation and development in India, which has brought tax revenue and employment opportunities to the local area, and also promoted the prosperity of the mobile phone industry. However, frequent raids and uncertain policy measures pose risks and challenges for Chinese companies operating in India.
Second, India's frequent fines and other actions against Chinese companies have had a negative impact on international capital and corporate investment in India. This instability and inadmissibility have made some international capitals and enterprises take a wait-and-see attitude towards investing in India. According to official data, from 2014 to 2021, 2,783 foreign companies registered in India terminated their operations in India, which is about one-sixth of multinational companies in India. India's approach is further cementing its reputation as a "graveyard for foreign companies."
In addition, India's frequent raids on Chinese-funded companies have also exacerbated tensions between China and India. This kind of restrictions and investigations on Chinese companies, and their use as a card in the border dispute, has deepened the hostility and mistrust between China and India. This does not help to resolve the border issue, but rather exacerbates the confrontation and conflict between the two countries.
In short, India's Modi's frequent raids on Chinese-funded enterprises have a certain background and reasons for the competition and border disputes between China and India, but there are also problems and inadmissibility in his approach. While protecting local industries and safeguarding national interests, it is also necessary to take into account the importance of international cooperation and stable development. Only on the basis of mutual respect and cooperation can China and India achieve mutual benefit and win-win results and contribute to regional peace and prosperity.