NewsGate Press Network

By N N Kaul

Two years of stand-off at the borders with China has not made much difference at the trade between two neighbouring countries. Not only has trade between two the countries grown further but investment proposals are also being cleared at various levels.

Chinese majors Vivo and Oppo are investing Rs 9,429 crores despite continued tension between the two countries.

They have acquired land in one of the largest Indian state of Uttar Pradesh- state which  plays a dominant role in the formation of  government at the centre.

The investment becomes important when the Indian government continues to raise anti-China voices in international forms and considers Chinese trade policy as one of major stumbling blocks in the way of India joining RCEP.

Not only that, Chinese investment has been published as a part of States’ achievements.

The advertisement adds, “Chinese companies in greater Noida will provide employment  to thousands of  people in the State while the Government will get huge revenue in the form of Goods and Services Tax.” It gives credit for the investments to progressive industrial policies of the State Government.

Bharatiya Janata Party is ruling  both the central Government and the State of Uttar Pradesh. The State Chief Minister claims that  investments  by  companies from  China and South Korea would help the State would usher in another industrial revolution that  would eventually propell the State into a $ 1 trillion economy.

Although no Chinese company applied for benefits under the Productivity linked incentive scheme for  13 sectors, they have been silently entering unopposed in Indian markets.

Chinese company Vivo is setting up a plant at Greater Noida to manufacture Laptops, mobile phones and other electronic gadgets at the cost of Rs 7,429 crores while Oppo is investing Rs 2000 crores.

China has quietly created a significant place for itself in India in the last five years in the technology domain.

After failing to persuade India to  join its  Belt and Road Initiative (BRI), China has  entered the Indian market through venture investments in the start-ups and penetrated the online ecosystem with its popular smart phones and their applications.

Chinese tech investors have put an  estimated  $4 billion into start-ups and  18 of 30 unicorns are  Chinese funded.  Around 70% of the  smartphone market is with Chinese  manufacturers and  likewise  bulck of laptops are  being imported from China.

Other  companies which  are investing in the State of  UP include  Haier Electronics (Rs 3069 crore ), chengfeng (LED)-Rs 100 crore. Five South Korean electronic companies are also coming up in the area with an investment of Rs 1,154 crore.

India placed a lot of  non tariff barriers on  imports from China following  escalation in the border tension.  Foreign direct investments from  countries sharing borders with India  have been  subjected to  administrative approvals.

But  trade between the two countries reached its highest level last year.

Since April,2020 India has received  over 120 FDI proposals of about  $1.63 billion from China. Silently India has been approving the proposals. Reports  suggest that several China backed funds including  Industrial and Commercial Bank of China and China Investment Corporation are aggressively looking for investment  opportunities in  Indian companies.

(N N Kaul is a Delhi based freelance journalist and a former senior Press Information Bureau officer)