India allows Chinese vendors: India and China, despite being the two Asian giants, have never enjoyed good diplomatic or economic relations. With wars fought in the past and constant incursions at the LAC, the relationship between the two does not prescribe to any such notion of diplomatic principles. China’s Galwan misadventure has made the matter worse with India going all guns blazing against China, protecting its own interests. Although, China has always been hell bent on decimating India’s interest.
India dealing with China with an iron fist
Galwan, that was portrayed as China entering Indian territory under the nose of the Modi government by the left liberal cabal, actually proved to be fatal for China, not only in terms of casualties but also on the economic front. China, post clashes, has reported that only 4 of their soldiers had died in Galwan valley.
However, the Klaxon report later said that at least 38 Chinese soldiers died in the aftermath of the clash.
China paid the price of territorial misadventure at the economic front as well. China’s economy is in shambles and the Covid pandemic has just complemented India’s effort.
On the other side, India amidst the rumours of possible war, took some unprecedented steps. 267 Chinese apps were banned, Foreign Direct Investment is now being guarded and Foreign Portfolio Investment has been further scrutinised. Chinese companies are living in India under a constant radar of surveillance. However, with the recent step of allowing Chinese vendors once again, India seems to be going soft on China.
As per a Bloomberg report, a number of Chinese suppliers of Apple Inc. have received initial clearance by the Indian Government to expand in the nation. The report suggests that New Delhi has turned down certain companies due to direct connection with the CCP.
AirPods and iPhone assembler Luxshare Precision Industry Co. and a unit of Ningbo, China-based Sunny Optical Technology Group Co. are among the company’s gaining approval, said the report.
Apple Inc. has named them as companies whose services it needs to increase its own presence in India. However, the Chinese companies are required to find local Indian joint venture partners. This has been made mandatory by the manufacturing rules put in place by the Modi government.
The Danger prescribed with the step
The step is slightly hard to understand from both Apple as well as India’s side as not only Apple but many other US based ventures wanted to diversify out of China, so as to reduce their dependence on Beijing.
The electronic brands based out of US was looking to reduce their reliance on the Communist nation after trade restrictions and Covid-related production disruptions. Still, why would Apple go with Chinese vendors settling in India at a time when the company has already begun assembling its products in India with the help of Taiwanese partners.
On the front of New Delhi, agencies in the recent past have banned Chinese apps, even distantly linked with the CCP. They probed and penalized a raft of other Chinese tech companies from phone makers to fintech service providers. The condition is such that even the Global Times, the CCP mouthpiece has to come out with an article saying that the Chinese companies need a favourable environment in the country to function.
Chinese companies have had a history of data breach, which might impact national security of India. Brushing all this aside and allowing a dozen Chinese companies into India in the name of manufacturing units, not only sends a shock wave across the nation, but also raises serious questions on the intention of the Modi government.
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