On Saturday, Foreign Minister S Jaishankar said that there should be strict scrutiny of Chinese investment in India. At the ET World Leaders Forum, the Foreign Minister said that many countries investigate Chinese investment for security reasons and India should do the same. This statement of the Foreign Minister has angered the Chinese government mouthpiece Global Times. The newspaper has written that investigating Chinese investment will only harm India’s own interests and its manufacturing sector will lag behind.
The Chinese newspaper wrote, ‘The scrutiny of Chinese investment may create dilemmas for India’s own development as political and economic considerations are intertwined. It is imperative for India to strike a balance between national security and promoting economic development. Without increasing mutual trust between the two countries, India will not be able to increase Chinese investment which is important for the progress of its manufacturing sector.’
‘Looking at the western countries…’
Referring to Foreign Minister Jaishankar’s statement, the Global Times wrote that his remarks, to some extent, reflect India’s attitude towards China on geopolitical and security issues and this is a major reason why India distrusts Chinese investment.
Expressing its anger on the western countries, Global Times wrote, ‘India’s such attitude is inspired by the western countries, especially America, which sees China as a security threat and insists on separating from China. India is giving excessive emphasis on the concept of security in economic issues following the example of western countries. The result of this is that India’s investment policy towards China has got stuck in a security dilemma.’
‘Restrictions on investment will hurt India’s manufacturing industry…’
The Global Times writes that India needs Chinese investment to boost its manufacturing and is also becoming wary of Chinese investment. This dual concern will not only hinder its manufacturing development but will also increase divisions in the country.
The Global Times further wrote, ‘According to some Indian media reports, Indian electronics manufacturers have suffered losses due to the ban on Chinese business.’
China’s state-run newspaper writes that it is understandable that every country has its own legitimate and fair system for reviewing foreign investment. But since the Indian government implemented a ban on foreign direct investment (FDI) with countries sharing borders with India in 2020, its strictness on Chinese investment has increased particularly.
India-China trade rises despite sanctions
Global Times has written that despite economic and trade sanctions on China, India-China trade has increased.
China has once again emerged as India’s largest trading partner in FY23-24. According to official figures, bilateral trade has reached $118.4 billion. Data from the India-based Global Trade Research Initiative shows that 98.5% of India’s goods purchased from China were industrial products, accounting for some 30 per cent of India’s industrial imports.
The Chinese newspaper writes that these trade figures show that the industrial chain between India and China is interdependent, which provides a great opportunity for cooperation. The newspaper wrote that if India wants to grow its manufacturing sector rapidly, then it will have to loosen restrictions on Chinese investment and create a good environment for business.
Global Times’ advice to India
The Global Times concluded the article by writing that India and China, especially India, will have to rely on Chinese investment. This trust can be increased by promoting economic and trade partnerships. This is what really matters economically and politically.
Source (PTI) (NDTV) (HINDUSTANTIMES)