Over the past few months, there has been a subtle shift in the Government of India’s stance towards Chinese investments. In 2020, as Sino-Indian border tensions escalated, investments from Chinese companies were stymied, foreign direct investment (FDI) rules tightened and prospective investors flatly told not to even apply to set up operations in the country.
Recently, responding to persistent demands from global and domestic mobile device and IT product players to help build a local supply chain ecosystem, the government has requested them to provide a list of their Chinese suppliers that would like to shift some capacity to India.
However, the preliminary screening and approval of the names comes with stiff riders. For one, it is meant only for Chinese companies that agree to set up a joint venture with domestic companies. The unwritten rule is that the latter should also have control, though many say that that could stifle choices sinc
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