Beijing / New Delhi : The Indian Government has issued an advisory to be cautious when trading with Chinese companies. Just 5 days back 3 Chinese journalists were ordered to leave India. Under these circumstances, the notice issued by India is related to the growing tension between India and China.
An official from the Indian Embassy clarified that this intimation is just a normal, routinely issued intimations. But this new notice has turned out to be the fourth notice issued in the last six years.
Such intimations were earlier issued in the years 2010, 2011 & 2013 advising the Do’s and the Don’ts for Indian traders. But the new advisory has clear and unambiguous suggestions to stay alert when trading with China.
Unlike the previous intimations, the new ‘advisory’ has not been published on the Indian Embassy’s website. It has only been put on the commerce Embassy website of Shanghai. The Indian Embassy official refused to clarify the reason behind this. In the last couple of years, the Embassy has received plenty of complaints from the Indian Companies doing trade with China. Indian companies are facing many obstacles when transacting with the Chinese companies and several reports about the Indian Companies being cheated and robbed at the hands of Chinese firms have come to the fore. Non provision of receipt on receiving cash for the imported goods or after receiving advance cash from an Indian company, stopping communication with the Indian company, sending faulty machines transferring amounts for the goods purchased to an unknown bank account are some of the reported complaints.
Additionally by sending stones, salt, bricks and even mud in place of chemicals, silicon carbide, aluminium, ingots, plastics and polymers Indian Companies & Indian traders are being cheated. It is being reported that the Indian Embassy official published the said notice after considering all these grievances.
The Indian Embassy has therefore recommended Indian Companies to first get in touch with the Embassy and the consulates in future to evaluate the reliability of the concerned Chinese companies before transacting with them.
Experts have opined that at this stage it’s difficult to comment on the impact caused by this new advisory on the bilateral trade relations between India & China. India has a huge deficit in bilateral trade with China. Last month Indian Minister of State for Commerce and Industry, Nirmala Sitharaman had clarified that India will not bear the trade deficit with China for long but China didn’t pay much heed to it. Moreover without acknowledging India’s vested interest, China had opposed NSG membership of India. China had also used its veto power to stop the investigations of the UN in respect of terrorists like Hafiz Saeed, Sayeed Salahudeen and Maulana Masood Azhar who had caused terrorism in India. As a result, a demand to teach a lesson to China, by taking a stand against it had begun.
This demand by the Indian people has caused the desired impact on the policies of the government and India has decided to start taking harsh decisions on this matter. Considering the financial implications caused due to its stance against India, China may now show more care and restraint while taking any decision concerning India.