Read on Twitter
1/ A Chinese stmt claims Indian external affairs minister said Indian policy twd China has not changed. This might be wishful thinking or hope on Beijing's part.While India's app ban has got a lot of attention, this thread lists the no. of other steps
has taken or floated
2/ These Indian policies stem from concerns that COVID19 & the boundary crisis hv intensified re:
- economic overdependence on/exposure to China
- inroads that Chinese companies have made into certain sensitive sectors
- China’s avenues of influence in India
- economic overdependence on/exposure to China
- inroads that Chinese companies have made into certain sensitive sectors
- China’s avenues of influence in India
3/ The announced & reported policy measures (if not reversed) will have the effect of restricting & scrutinize Chinese activities in a no. of Indian sectors
- economic
- technology
- telecommunications
- public diplomacy
- education
- civil society
- economic
- technology
- telecommunications
- public diplomacy
- education
- civil society
4/ Pre-boundary crisis, India first announced FDI restrictions from countries that share a land boundary with India—a move clearly directed against China https://twitter.com/tanvi_madan/status/1251494105751924742?s=20
5/ Also, pre- & post-PLA's moves at the boundary, there have been reports of the Indian government is considering extra scrutiny or restrictions on Foreign Portfolio Investment from China as well:
- https://bit.ly/3ikixEh
- https://www.reuters.com/article/us-india-china-investments/india-plans-scrutiny-of-new-portfolio-investors-from-china-hong-kong-sources-idUSKBN22Y0OM
- https://bit.ly/3ikixEh
- https://www.reuters.com/article/us-india-china-investments/india-plans-scrutiny-of-new-portfolio-investors-from-china-hong-kong-sources-idUSKBN22Y0OM
6/ The Indian government has also amended public procurement rules “to enable imposition of restrictions on bidders from countries which share a land border with India” on defence and national security grounds
https://pib.gov.in/PressReleasePage.aspx?PRID=1640778
https://pib.gov.in/PressReleasePage.aspx?PRID=1640778
7/ The Indian government's online procurement platform now requires vendors to identify the country of origin of products https://www.bloomberg.com/news/articles/2020-06-23/india-takes-another-step-to-block-china-products-with-new-rules
8/ Road Transport, Highways & MSME minister Nitin Gadkari said, “imports from China will be discouraged.” He indicated that, within his portfolio, Chinese cos. could be excluded from future road construction projects https://www.ndtv.com/india-news/wont-allow-chinese-partners-in-road-and-highway-projects-says-nitin-gadkari-2255255
9/ The central government moves have implications for state governments too. One state had indicated in June they'd been told to hold on new Chinese involvement in projects https://twitter.com/tanvi_madan/status/1275104164373299203?s=20
10/ There is also an impact on procurement at state level https://twitter.com/NewIndianXpress/status/1301906617450074113?s=20
11/ Delhi has also been reportedly considering further measures to curb and scrutinize imports https://www.financialexpress.com/economy/eye-on-china-india-plans-stricter-curbs-on-low-grade-imports/1998890/
12/ Also "New Delhi is considering measures to prevent trade partners mainly in Southeast Asia from re-routing Chinese goods to India with little added value" https://www.reuters.com/article/us-india-trade-asia/with-eye-on-china-india-looks-to-increase-barriers-on-imports-from-asia-idUSKCN24Z23B
13/ There are have also been reports that Indian state-owned oil companies will no longer use Chinese tankers to ship crude oil or petroleum products https://www.bloombergquint.com/global-economics/india-bars-china-tankers-from-oil-trade-as-ties-strain-further
14/ Then there was the famous India ban of Chinese apps (there hv been 3 rounds of this)
And keep in mind that Chinese tech cos. will also be affected by the investment restrictions https://twitter.com/tanvi_madan/status/1277626194339512320?s=20
And keep in mind that Chinese tech cos. will also be affected by the investment restrictions https://twitter.com/tanvi_madan/status/1277626194339512320?s=20
15/ On the telecom side, state-owned firms BSNL and MTNL canceled a tender issued in March to upgrade their 4G networks. The revised tender is expected to exclude Chinese firms Huawei and ZTE from bidding to provide equipment https://www.deccanherald.com/national/bsnl-mtnl-cancel-4g-upgradation-tender-aimed-at-keeping-chinas-huawei-zte-out-of-indias-telecom-sector-855974.html
16/ There are also reports that the Indian government is ready to use investment restrictions to exclude Chinese companies (think Huawei) from India’s 5G trials https://www.bloomberg.com/news/articles/2020-08-13/china-s-huawei-zte-set-to-be-shut-out-of-india-s-5g-trials
17/ Delhi also seems to be considering/providing incentives for Indian & foreign companies to manufacture in India, and to reduce dependence on Chinese imports in particular sectors like solar power, electronics and pharmaceuticals. https://www.livemint.com/industry/energy/with-an-eye-on-china-india-to-offer-land-near-major-ports-for-solar-equipment-manufacturing-11597316045422.html
18/ On pharma: "India, a global hub for generic drugs, has launched a new scheme to boost production of active pharmaceutical ingredients that are greatly dependent on the Chinese supply chain" https://www.business-standard.com/article/companies/india-scaling-up-production-of-active-pharmaceutical-ingredients-kant-120090800646_1.html
19/ India's also considering incentive packages to attract companies looking to diversify from China
- https://bit.ly/2Rh2Phm
- https://economictimes.indiatimes.com/tech/hardware/govt-panel-oks-100-b-mobile-export-proposals/articleshow/77968729.cms
- https://bit.ly/2Rh2Phm
- https://economictimes.indiatimes.com/tech/hardware/govt-panel-oks-100-b-mobile-export-proposals/articleshow/77968729.cms
20/ Also Delhi reportedly
- requiring prior security clearance for visas for Chinese biz, civil society, academic professionals
- Indian institutions’ & universities’ agmts w/ Chinese organizations, esp Hanban, being reviewed & likely to be discouraged https://www.bloomberg.com/news/articles/2020-08-21/india-slaps-new-curbs-on-visas-schools-to-stem-china-influence
- requiring prior security clearance for visas for Chinese biz, civil society, academic professionals
- Indian institutions’ & universities’ agmts w/ Chinese organizations, esp Hanban, being reviewed & likely to be discouraged https://www.bloomberg.com/news/articles/2020-08-21/india-slaps-new-curbs-on-visas-schools-to-stem-china-influence
21/ Will keep updating this thread, but some concerns raised abt steps:
- come w costs, esp as GoI dealing w COVID econ fallout
- import disruptions/higher costs cld affect cos. GoI is trying to attract/keep (esp manufacturing)
- cld delib/inadvertently hit non-China foreign cos.
- come w costs, esp as GoI dealing w COVID econ fallout
- import disruptions/higher costs cld affect cos. GoI is trying to attract/keep (esp manufacturing)
- cld delib/inadvertently hit non-China foreign cos.
22/ "India has culled a $29.8 million contract placed three years ago with Chinese port crane maker Shanghai Zhenhua Heavy Industries Co Ltd" https://www.thehindubusinessline.com/economy/logistics/chabahar-port-india-scraps-298-m-crane-deal-with-chinas-zpmc/article32525973.ece
