New Delhi 19 July: The Chinese companies, which are present in India, as well as some foreign companies with cross-border investment, is likely to have alleged connections with the Beijing army, which has led to the central government becoming cautious. The government is closely watching these companies. These companies are likely to have connections with China’s Piplus Liberation Army (PLA). The central government is moving forward with plans to reduce Chinese companies’ participation in the economy. The Indian government has also changed the FDI (Foreign Direct Investment) rules, which will make it easier to track investors. Also, new investments in such companies, including start-ups funded by Chinese investors, will be examined in detail to ensure that there is no security risk.
Plan of SEBI and Ministry of Finance
According to the Times of India report, the Ministry of Finance and market regulator Sebi are finalizing the rule to examine cross-border investment, while also ensuring that such a rule does not affect market sentiment. According to a government source, the data is being scrutinized and both agencies will set up a system of reporting and monitoring. Chinese companies have come on the radar of the Modi government after a clash between the PLA and the Indian Army in the Galvan Valley of Ladakh on the night of 15 June. The government has taken several stringent measures against Chinese companies in terms of business.
Apart from India, these countries also took action
Prior to India, several countries, including the US, UK and Australia, have halted operations of Chinese telecom vendor Huawei, whose founders allegedly had links with PLA’s Engineering Corp. However, the company has said that it has no links with the Chinese military. Here India has banned 59 Chinese apps. This jolted China’s ambition under which it wants to bring its tech companies to compete with the American giants. It has also deepened doubts over Huawei and ZTE’s involvement in the 5G business.
Mining companies also have relationship with PLA
Sources said some Chinese mining, steel and even auto companies have had links with the PLA in the past. Similarly, there have been instances before the government where foreign entities, some of which are from Europe, invest in an Indian company, but that foreign company is controlled by a Chinese company. Meanwhile, China has said that its economy grew at a rate of 3.2 per cent in the second quarter of 2020 (April-June) compared to the same quarter last year. China’s economy outperformed estimates by emerging analysts from the first quarter’s decline. China relieved the lockdown imposed by Coronavirus, which had a positive impact on its economy.
- Rajasthan tape scandal: Congress counterattack on BJP for demanding CBI probe
- Millennials may drive demand for affordable houses, post COVID-19
- Xi Jinping and the so-called democracy of China
- Flood catches destruction in Assam, suffering life of humans and animals
- Samsung Galaxy M01s launched in India, know its price and features
- Congress and AIMIM leaders put mother and daughter in death to defame Yogi government
- Businessman in Odisha got himself a mask made of gold