India-China Relation / India's market will again be filled with Chinese goods, the government is making this plan!

India-China Relation: The Indian government has taken an important step and decided to allow senior officials of Chinese companies to visit India. This policy will make it easier for Chinese CEOs and senior management of companies like Vivo, Oppo, Xiaomi, BYD and Haier to enter India. For the last five years, India had imposed visa restrictions on Chinese business representatives, but now the government has indicated that people associated with non-technical fields like management, sales, marketing, finance and HR will be able to get visa easily.

Ban was imposed after border dispute

After the tension on the India-China border in 2020, India tightened the visa rules for Chinese officials and business representatives. Only technical experts, such as engineers or people associated with factory setup, were being given limited permission, that too if they were working with companies associated with the government's Production Linked Incentive (PLI) scheme. Apart from this, strict rules were also imposed on Chinese investment, in which it was mandatory for any Chinese company to get approval from several ministries to invest in India.

The atmosphere is changing

Now there are signs of improvement in relations between the two countries. The resumption of direct flights, permission of tourist visas and efforts to resolve the border dispute have softened the atmosphere. A spokesperson for Xiaomi India said, "Our leadership team wants to come to India and understand the market better. This new rule will help us a lot."

In the last few years, senior officials like Jerome Chen of Vivo India, Figo Zhang of Oppo India and Michael Guo of Realme India were unable to come to India and were operating their companies from China. Companies like Carrier Media and BYD India have also been unable to comply with Indian company laws in the absence of visa approval, which requires at least one director to stay in India for 182 days a year.

Pressure had increased on Indian officials

Due to the ban on Chinese officials coming to India, many companies had started including Indian professionals in their boards. On the other hand, Indian manufacturing companies like Dixon Technology, Amber Enterprises and Epack Durables had to visit China frequently for meetings. The head of a manufacturing company said, "When Chinese officials visit India and see our factories, they trust our capabilities, which leads to faster negotiations and decisions."

Mutual interest of India-China

50-65% of the parts required for mobiles, TVs, vehicles and other electronic goods in India still come from China. India's dependence on China in this sector is evident. During the recent visit of Chinese Foreign Minister Wang Yi to India, both the countries agreed to increase trade cooperation. The government has advised Chinese companies to invest in India in sectors that are not sensitive to national security.

PM Modi's visit to China

Prime Minister Narendra Modi will attend the Shanghai Cooperation Organisation (SCO) meeting in Tianjin city of China later this month, where he will meet Chinese President Xi Jinping. This will be his first visit to China after seven years. This visit is expected to be a new beginning in trade and relations between the two countries.