India vs China / Enmity with China can become an obstacle, can the government stop this investment plan worth crores of dollars?

Vikrant Shekhawat : Jul 16, 2023, 12:06 AM
India vs China: India may or may not have any objection to FDI or any other type of investment from any country in the world, but China's money is absolutely disgusting to it. That's why where a big Chinese company is willing to invest crores of dollars in India, on the other hand there is news that the Modi government is not that thrilled about it. There is also a possibility that the investment plan of the company may also get stuck.

China's big electric vehicle manufacturing company BYD is planning to invest up to $ 1 billion in India. With this, the company wants to start manufacturing electric cars and batteries in India, for which it is also partnering with an Indian company. But there is no special excitement about this deal or investment plan in the government department.

Enmity with China became a hindrance

According to the report, BYD has submitted its investment plan to the government. However, an uneasiness is being seen within the Ministry of Home Affairs and the Ministry of External Affairs regarding this investment plan of the Chinese company.

Anyway, Prime Minister Narendra Modi's government has been trying to stop the entry of Chinese companies in important sectors of the country. The government gives the logic of national security behind this. When many Chinese social media apps were banned in the country, even then this intention of the government was revealed and even then the government had banned these apps keeping in mind the national security.

Chinese government interferes in companies

According to the news, the concern of the Government of India is that the 'joint ventures' of many Indian companies are made by Chinese companies. In this, some also get the support of the government there. A huge amount of Chinese money is invested in these joint ventures and their control is also almost in their hands.

In this situation, the Indian company becomes just a dummy company. He does not have much control over the technology and decision making of the joint venture. Along with this, the Government of India is also worried about the interference of the Chinese government in Chinese companies.

In the case of BYD also, the concern of the government is similar. This Chinese company aspires to grow aggressively in the Indian market. For this, the company wants to launch a complete range of electric vehicles in India under the BYD brand name. BYD has made a plan to invest in India in collaboration with Megha Engineering and Infrastructure, a private company from Hyderabad.