India’s Clampdown on Chinese Products and Investment

Indian Chinese Dispute:India and China have reached a deal on patrolling their disputed Himalayan frontier, aiming to resolve a four-year military stand-off, Indian Foreign Secretary Vikram Misri said on Monday.

According to Reuters, the two nuclear-armed neighbors have had tense relations since their troops clashed on the largely undemarcated frontier in 2020, leaving 20 Indian and four Chinese soldiers dead.

Areas Affected By The Indian Chinese Dispute 

1. No direct flights

The two countries have not had any direct flights for four years. China has been pressing India to restart direct passenger flights and India’s aviation minister said last month the two countries discussed an early resumption of scheduled passenger flights. 

2. Visa rules for Chinese Technicians

India increased scrutiny for visa applications from Chinese citizens in the wake of the border clashes. This hurt some of India’s key manufacturing firms as stricter visa rules meant specialized engineers from China could not enter the country, leading to production losses. 

After industry complaints, India recently decided to speed up processing of visas for Chinese technicians.

3. New investment vetting rules 

In 2020, India stepped up scrutiny of investments from companies based in neighboring countries by adding an extra layer of vetting and security clearances, in what was widely seen as a move to stave off takeovers and investments by Chinese firms. 

It has led to billions of dollars in proposed investment getting stuck in the approval process over the last four years, including the stalling or shelving of investment worth billions from companies like BYD and Great Wall Motor.

Also Read: Africa’s Electric Mobility Drive: Chinese EV Manufacturers Seek to Take the Lead

4. Mobile apps ban

Citing data and privacy issues, India has banned about 300 Chinese mobile apps including popular ones such as the battle-royale format game from Krafton Inc, a South Korean company backed by China’s Tencent.

5. Xiaomi asset freeze

Indian authorities last year accused Chinese smartphone company Vivo Communication Technology of breaching some visa rules and alleged it siphoned $13 billion in funds.

India has frozen more than $600 million in Xiaomi assets for alleged illegal remittances to foreign entities, accusing the company of passing them off as royalty payments.

Both Chinese companies deny any wrongdoing.

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