The global landscape has changed dramatically! According to the "Global Times" reporters Yuan Jirong and Chen Zishuai, Chinese companies are facing unprecedented pressure from India. Recently, the Times of India reported that Chinese companies had to outsource their manufacturing operations to Indian companies due to their refusal to open their chains and production activities to Indian companies. The move is seen as the result of a long-term push policy by India, seen locally as a "big win" for local manufacturers. But is this a voluntary choice or pressure on the part of Chinese companies? What role does India play? Let's take a look at the interview report of the reporter of the Global Times.
The report pointed out that most smartphone manufacturers in India are in dire need of manufacturing contracts after receiving incentives under the Production Linked Incentive Scheme (PLI). The PLI policy was introduced by India** to industrialize, expand exports, and increase employment, providing financial incentives to manufacturers in specific industries. According to people familiar with the matter, Indian domestic electronics manufacturers Dixon Technology and Kabang have become leaders in signing new business with Chinese companies. Among them, Dixon has received a large mobile phone manufacturing order from Chinese mobile phone company OPPO, while another Indian electronics manufacturer, Optiemus, has signed an exclusive cooperation agreement with Xiaomi.
It is worth noting, however, that India stepped in after discovering that Chinese companies, which have a sizable share of the Indian smartphone market, are not ready to open the chain to Indian companies. In this regard, a *** said that given that Samsung and Apple occupy about 25% of the Indian smartphone market, and most of the other markets are occupied by Chinese brands, Indian companies can only make progress by cooperating with Chinese brands. Therefore, India** hopes that more Chinese companies will provide technology and production opportunities for Indian companies.
In response to this situation, Long Xingchun, an expert on South Asia in China, said that if this is a business model that enterprises choose independently, then there is no problem. But at present, it seems that this is obviously due to the interference and pressure from behind the back of India, and it lacks legitimacy, which is also the consistent practice of India.
On the other hand, the Electronic Times reported that in recent years, as India's ** scrutiny of Chinese companies and citizens has been intensifying, the investment of Chinese companies in India has dropped significantly. Especially after the outbreak of the Galwan Valley conflict in 2020, India has adopted a series of unfriendly policies towards Chinese companies in India. In addition, India has also adopted a series of stringent regulations, requiring that the branches set up by Chinese companies in India must be held by Indians in important positions, and that the merchants and distributors must be local Indian enterprises. These regulations have made the situation of Chinese companies in the Indian market increasingly difficult, and some companies have even had to transfer their production processes and technologies to India to cope with the challenges brought about by the policy.
At present, Chinese enterprises are facing huge challenges and pressures in the Indian market. Some businesses have even been forced to shut down and go bankrupt altogether. This situation not only affects the normal operation of enterprises, but also harms the overall situation of economic exchanges and cooperation between China and India. In this context, in the face of India's unfriendly policies and suppression, Chinese-funded enterprises are forced to make compromises due to the situation. However, this compromise is by no means a long-term solution, and we hope that China and India can resolve their differences through dialogue and cooperation and jointly promote the development of bilateral relations.