Government changes tendering norms to restrict Chinese companies,

New Delhi: The Indian government delivered another blow to China, by changing the tendering norms, to keep Chinese companies away from bidding for these tenders. As per reports, the government is also making preparations to deliver another blow, by banning more Chinese apps. At the same time, a renowned company like Apple has decided to manufacture its new iPhone model in India.

The Indian government amended the Foreign Direct Investment rules in April, to prevent Chinese companies from taking undue advantage of the situation and taking over the Indian companies, weakened due to the Coronavirus crisis. It was made mandatory that all the investments coming from the neighbouring countries, will need a prior sanction from the government. Although it was said neighbouring countries, the objective was to stop the opportunistic Chinese investments.

The government has also changed the tendering norms on similar lines and added one more filter for the Chinese companies in the Indian market. Keeping national security in view, the government has amended the Financial rights act. Now, it will not be easy for companies from China, Pakistan, Nepal, Bhutan and Bangladesh to win bids for government contracts. The government has changed the tendering norms. Till now, the Chinese companies were masters in bagging public sector contracts. Therefore, it is being said that the amendment to the norms has been made to prevent Chinese companies from getting government contracts.

As per the amendment, a competent authority will be created by the Department for Promotion of Industry and Internal Trade. The companies from the neighbouring countries that are registered with this authority only will be able to bit for supply of services and goods to the public sector. But it will be mandatory to obtain security-related clearance from the Foreign and Home ministries.

All companies, banks, autonomous bodies in the public sector and even the Public-Private Partnership projects, will be under the purview of the amendment. The rules will apply even to the state government undertakings as per the amendment to the clauses of the constitution.

Meanwhile, as per reports, after banning 59 Chinese apps, there is a likelihood of more apps being banned in India. The light versions of the formerly banned apps were available on the Google play store and Apple App Store. They also have been removed following instructions from the government.

At the same time, Apple Inc has decided to manufacture its new model ‘iPhone11’, in India. It is being said that the Apple decision comes in the wake of the sentiment of the Indian population, against Chinese products. Earlier, major iPhone production was being done in China and exported to India. But it is reported that Apple has taken the decision of not importing iPhones manufactured in China into India and to manufacture them in India itself. The report also claims that the company is considering export of the iPhone models made in India.