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    Last updated: 22 Jun, 2020  

    India.China.9.Thmb.jpg Centre mulls stricter scrutiny for Chinese investments

    India.China.9.jpg
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    SME Times News Bureau | 22 Jun, 2020
    The Centre is said to be mulling a plan to frame stricter and thorough scrutiny of investments from China, which use indirect routes to reach India.

    Accordingly, key government departments are brainstorming over the issue which has got amplified after the two Asian nations collide deep in the Himalayas.

    While security concerns were earlier present the added dimension of confrontation between the armies of the two countries have fast tracked the proposal.

    Recently, the Centre amended an old policy to mandate companies, entities and individuals from countries that share a land border with India to seek government's permission for investing in corporations here.

    However, a lacuna was still left out which allowed investments to be re-routed through a third country or jurisdiction to reach India.

    Now this is being rectified with stricter strutting norms.

    Besides, stricter checks on Chinese FPI investments in stock markets are also proposed.

    Another matter of contention, sources says is whether the new norms would constitute a contravention of WTO rules.

    Though other countries have been included in the amended policy, it is Chineses firm which stand to lose the most.

    Globally, the Asian economic giant has been blamed not only for misreporting about the pandemic but also to use its financial muscle to buy into distress companies in various countries.

    The recent developments have lead to a massive anti-China sentiment in India which is especially directed to the economic relations between the two countries.
     
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