The question arises whether the consequences were not considered when the investment restrictions of Chinese companies were imposed? Does the Government of India take decisions in emotion? Is it now thought that what will be the message of waiving that restriction? Wouldn’t that encourage China?
The news of an American media organization is shocking that the Indian government is considering to relax some of the restrictions on Chinese investments in 2020. These restrictions were imposed after the fighting between Indian and Chinese troops in Galwan Valley in June 2020. 20 Indian soldiers were martyred in that clash. The infiltration of the Chinese army in Galvan Valley and many other areas of Ladakh still continues. So what is the point in withdrawing the steps that were taken in protest against that ‘aggressive’ attitude of China? Media organization Bloomberg has reported that the Narendra Modi government is now considering exempting proposals from companies in which foreign ownership is less than 10 percent. Existing rules say that if any entity of the countries with which India’s land border joins, if any entity of those countries invests in India, then for this it will have to take separate permission from the Government of India. That is, no entity can invest in an automatic way. According to a Bloomberg report, currently about $6 billion worth of proposals are stuck due to this rule.
Read also Uttar Pradesh Who is the future Chief Minister?
In these circumstances, the government has started reconsidering the proposals for Chinese investment. Some kind of decision can be taken on this by next month. The question arises whether the consequences were not considered when the sanctions were imposed? Does the Government of India take decisions in emotion? Is it now thought that what will be the message of waiving that restriction? Wouldn’t that encourage China? It is worth noting that in the Chinese media, this news has been told as India’s step taken under compulsion. Chinese newspaper Global Times has said that India is considering such a step in the event of foreign investment being low. The newspaper has said that due to the kind of investigations and restrictions imposed on Chinese businesses in the past, the confidence of the traders in India has been shaken. In 2020, increased political tensions over the border dispute between India and China had an impact on trade relations as well. After this, strict restrictions were imposed on Chinese companies doing business in India.