China expresses displeasure about the amendment to FDI norms by India

New Delhi: – Changes made by India in the Foreign Direct Investment (FDI) norms, to keep a tab on the investments, by opportunistic China and to safeguard the interest of the Indian industry, have not turned out well. China is spewing fire at the Indian decision. It has said that the changes made by India violate international regulations. Moreover, it also hopes that India will withdraw the amendments.

Only two days ago, the commerce ministry, made prior sanction from the government mandatory, for all the direct and indirect investments coming from a neighbouring country through a notification that was issued. The government said that this amendment to the FDI norms was being made to prevent the acquisition of Indian companies, taking advantage of the situation created by the Coronavirus crisis. This amendment has no mention of China. This amendment applies to all the neighbouring countries. But the reaction has been received only from China.

Ji Rong, the spokesman of the Chinese embassy, accused that the Indian amendments to the FDI norms violate the WTO rules, where it was agreed on transparent, easy and non-discriminatory policy for investments and trade between all the G-20 countries. These new Indian amendments are creating obstacles in the policy decided by the G-20 countries.’ Rong said that China expects that India will not mete out any discriminatory treatment to China.

Earlier, Chinese Ambassador to India, Sun Weidong, had made indirect comments on the Indian decision. Weidong had said that China was the first to point out the Coronavirus pandemic to the world. China had helped the world in this way. But the cooperation is being sacrificed, when there is a need for international cooperation. Weidong had posted his reaction on the social media, within a few hours of the Indian decision to amend the FDI norms. Therefore, this statement made by Weidong is being read jointly with the Indian decision.

Experts are warning that taking advantage of the crashing economy and the rock bottom valuation of the industries, China will acquire industries and companies. It is claimed that China has reserved billions of dollars for this purpose. Australia, Germany, Spain and Italy also have jolted China, by making the FDI rules stricter. Whereas indications are that many other countries even are contemplating similar measures. Everyone fears the opportunistic investment by China.

As per experts, with this modification in the FDI rules, India has closed the backdoor entry for the Chinese companies in the Indian companies. Therefore, this government decision is being applauded and according to some, the decision should have been taken much earlier.