It seems that the days for Chinese companies are numbered in India. Their financial offences have invited the wrath of Indian laws. This has deeply disturbed the communist nation which is sweating profusely. The Chinese Communist Party (CCP) has deployed its poodle, Global Times, to plead with India. It wants India to stop carrying out crackdown against its tainted companies.
Following this dictation of the CCP, Global Times published an article pleading India to not set ‘obstacles’ in the way of its companies. The propaganda outlet has given reasons that it believes should encourage India to stop carrying out crackdown on Chinese investment.
Chinese exit on the cards?
The Global Times is a Chinese government-linked publication which is notorious for carrying out hit jobs for the Communist party. It mostly publishes highly aggressive articles and indulges in name calling for its naysayers and rivals. Ironically, the same publication seems to have gone timid and soft towards India. It has written an article titled “Crackdown on Chinese firms undercuts India’s attractiveness”.
The article starts by informing about India’s ongoing action against the three Chinese mobile companies – Oppo, Vivo India and Xiaomi. Currently, India is probing these Chinese Smartphone giants under serious cases of tax evasion.
In the article it further states that India is trying to be a global manufacturing hub but “protectionist policy” and “approval system” is hampering our manufacturing ambitions. It is funny that to cover up financial irregularities and ‘money laundering’ by its manufacturing industries, it is trying to pin blame on India.
According to the Chinese publication, India’s economic nationalism is expanding which is resulting in all these crackdowns on Chinese companies.
The commentary in the propaganda publication read, “As the country’s economic nationalism continues to swell, India has carried out various crackdowns on Chinese investments and companies.”
The Galwan misadventure has proved to be a costly affair for the expansionist dragon. By 29th of June 2022, India had only approved 80 out of 382 Foreign Direct Investment (FDI) bids that Chinese companies had submitted since April 2020. The Indian government has made it mandatory to get prior approval for any foreign investments coming from countries that share land borders with India.
From this Global Times concluded that doing business in India is becoming tougher particularly for the Chinese investment and companies. It has also mentioned some American automobile companies who shut their shops in India. However, with these cherry pickings it can’t deny the fact that Ease of doing business and FDI inflow in India is only on the rise.
It writes, “The number presents the increasingly difficult business environment facing Chinese investment and companies doing business in India.”
Indian authorities tightening grip against the fraudulent Chinese companies
Recently, Finance Minister Nirmala Sitharaman informed the Rajya Sabha about the actions against the three Chinese smartphone giants. She informed that the Directorate of Revenue Intelligence (DRI) has served notices to these Chinese companies for alleged tax evasion.
In her written reply she said, “A show-cause notice demanding Rs 4,403.88 crore has been served to OPPO Mobiles India Ltd based on an investigation conducted by the DRI, while five cases of Customs duty evasion have been registered against Xiaomi Technology India.The DRI served a show-cause notice to Vivo India demanding customs duty amounting to Rs 2,217 crore, under the provisions of the Customs Act.”
This clampdown has left the Chinese state in jittery. The Global times cried foul and emphasised that such actions impedes business environment and shatters the confidence of investors.
It further went on to state, “Recently, India has clamped down on a number of Chinese manufacturers. Frequent investigations by the Indian side into Chinese enterprises not only disrupt those companies’ normal business activities, but also impedes the improvement of business environment in India and chills the confidence and willingness of market entities, especially Chinese enterprises to invest and operate in India.”
It went further and lamented that if things persist like this, exit of the Chinese companies are also on the card. It added, “For Chinese processing and manufacturing enterprises that originally tried to make India an overseas product-processing centre, if it is indeed increasingly difficult and unprofitable to operate in India, then withdrawing from India is also an available option.”
In the end it used the trade data of the two nations and stated that economic cooperation is mutually beneficial for both the nations. It requested India to stop these clampdowns and provide “fair” and “non-discriminatory” business environment for Chinese investors.
However, China and its propagandist outlet Global Times forgot that crocodile tears and sweet talks don’t work on the Indian government. As far as its shallow threat of leaving from the Indian market goes, it is more than welcome to do so. There will be no special treatment for “Chinese” companies who are notorious for a multitude of reasons.
Further, the law will take its own course irrespective of its country of origin. So, it is important for China to digest the fact that perpetrators of every crime, financial or other form of subversion will be brought to Justice. Additionally, if the Chinese companies are found to be guilty of these crimes, it will be booted out from India just like Tik-Tok and several other apps. So, the exit of the Chinese companies will only start a celebratory mood in India.
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