Indian government came up with new restrictions concerning foreign direct investment rules. These new guidelines mandate companies that are based in India’s neighbouring countries to seek clearance before making investments in India. This means that any firm based out of China, Sri Lanka, Afghanistan, Pakistan, Bangladesh, Bhutan, Nepal, and Myanmar will have to follow the new procedure.
The development came after the National Security Advisor to the PM, Ajit Doval raised concerns about the dominance of the Chinese players in the Indian technology sector. He alarmed the authorities over Chinese government-sponsored quasi startups entering the Indian market. Several countries from across the globe are skeptical about Chinese tech-based firms entering their market over the issue of data breach.
In India, as per the recent reports available, the investment of the Chinese firms in the country’s technology sector has exponentially spiked up to six times from $668 million in 2016 to $5.6 billion in 2018. Moreover, a majority of the Indian unicorn startups are backed by Chinese venture capital. The recent alterations in the FDI rules are expected to put a halt to vicious Chinese investments in India.
The development in the FDI rules is made targeting specifically China as India had already restricted investments from Pakistan and Bangladesh. On the other hand, investments from other neighbours are negligible. Along with the new restrictions, Indian authorities are closely scrutinising Chinese investments in the country. Recently, the Securities and Exchange Board of India (SEBI) asked Indian firms to disclose all investments made by Chinese firms.
Now,Trump administration is “turbocharging” an initiative to remove global industrial supply chains from China as it weighs new tariffs to punish Beijing for its handling of the coronavirus outbreak, according to officials familiar with US planning.
President Donald Trump, who has stepped up recent attacks on China ahead of the November 3 US presidential election, has long pledged to bring manufacturing back from overseas.
Now, economic destruction and the US coronavirus death toll are driving a government-wide push to move US production and supply chain dependency away from China, even if it goes to other more friendly nations instead, current and former senior US administration officials said.
Australia has called for an inquiry into the origin of the coronavirus. Germany and Britain are hesitating anew about inviting in Chinese tech giant Huawei. President Donald Trump has blamed China for the contagion and is seeking to punish it. Some governments want to sue Beijing for damages and reparations.
Across the globe a backlash is building against China for its initial mishandling of the crisis that helped loose the coronavirus on the world, creating a deeply polarizing battle of narratives and setting back China’s ambition to fill the leadership vacuum left by the United States.
China, never receptive to outside criticism and wary of damage to its domestic control and long economic reach, has responded aggressively, combining medical aid to other countries with harsh nationalist rhetoric and mixing demands for gratitude with economic threats.
The result has only added momentum to the blowback and the growing mistrust of China in Europe and Africa, undermining China’s desired image as a generous global actor.
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