New Delhi: India, who is delivering successive economic jolts to China, following the Galwan Conflict, has prepared to deliver one more jolt to China. It has been reported that the Indian government has decided to reconsider 50 investment proposals received from Chinese companies. The Indian government made changes to the foreign investment regulations in April. A claim has been made, quoting government sources, that Chinese investment proposals are being reviewed, in the context of these regulations.
The government made changes to the Foreign Direct Investment (FDI) regulations, to prevent Chinese takeover bids, taking advantage of the financially weak state of Indian industries, due to the Coronavirus pandemic. As per the new regulations the automatic route has been closed for any FDI. Prior sanction from the government has been made mandatory for every FDI. These changes to the rules were made to stop the opportunistic Chinese investments. But against the background of the Galwan Valley conflict, the significance of the reports that the government is reviewing the investment proposals in greater details, under the new ‘Screening Policy’, increases further.
40 to 50 investment proposals have been received since the changes were made to the FDI regulations and they have not been cleared still. Chinese investors are upset with the new rules. Whereas, a senior official informed that the government has taken a cautious stand on the Chinese investments, since the Galwan conflict.
Over the last few days, the Indian government has delivered multiple jolts to China with some unprecedented decisions. These include decisions like a ban on 59 Chinese apps and stopping the import of power equipment from China. The government companies are cancelling contracts signed with the Chinese companies. Moreover, even some private companies are taking a similar decision, given the public sentiment and overall interests. There is anger brewing in the Indian people and China seems to have panicked because of the Indian economic retaliation.