China Thriving Hard for Backdoor Investments in IndiaTop Stories

August 30, 2021 13:16
China Thriving Hard for Backdoor Investments in India

The government of Indian issued a note in April last year to regulate all the Foreign Direct Investment (FDI) from the countries that share a land border with our nation. The major target was China and the business transactions have impacted after the move. After the arrival of the coronavirus pandemic, there is a huge financial crisis and several Chinese firms staged a hunt for investments in the corporate space. India acted proactively and traced the threat. The Indian government made sure that all the investments coming from the neighboring countries should take the prior permission from the government of India.

Any investment from the neighboring countries cannot take the automatic route as per the extant FDI policy. Soon, the Indian government banned several Chinese apps after the Galwan valley clash with China. India made sure that the consumer data will not be tampered or misused because of which Chinese apps were banned. Several countries lauded the move of India and some of them even implemented them strictly. In the technology sector, Chinese firms took a toll on the consumer internet business. They are thriving hard to re-enter India through a backdoor. They wanted PUBG to make a comeback through the South Korean firm Krafton. Tencent invested in Krafton after PUBG was removed from Indian mobile stores.

Shopee is a popular shopping app based in Singapore and it is in plans to make it to the Indian market. The major business model is to ship goods from Chinese firms. China-led investments are making strong attempts to enter India but the government is quite strict on the face of the business and their investors.

By Siva Kumar

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