Article from The Indian Express on July 30, titled: India Re-examines Its China Blockade Policy to Promote Technology Manufacturing. About five years ago, India adopted a certain "de-China" strategy, introducing foreign investment policies targeting China and excluding Chinese companies from key sectors such as telecommunications. However, with changes in the geopolitical situation, the unprecedented impact of the United States on global trade, and India's own manufacturing ambitions, New Delhi is now seriously re-evaluating its existing strategy and focusing on relaxing access for Chinese enterprises in India, while adding some conditions.
The latest sign of thawing relations between the two countries is that the Indian National Commission for Transformation, an Indian government think tank, recently proposed a recommendation to ease India's foreign direct investment regulations, which involve the government's review of investments by Chinese enterprises. Previously, the 2023-2024 Economic Survey of India unexpectedly advocated attracting Chinese enterprise investment to promote (India's) exports.
There are signs that India is allowing Chinese companies to cooperate with Indian entities, albeit slowly but with a firm attitude. The large Indian electronics manufacturing company, Dicson Technologies, has received approval from the Ministry of Information Technology in India to establish a joint venture with Chinese company Lianxi Technology. The new company will focus on the production and supply of various electronic products, including smartphones, tablets, true wireless Bluetooth earphones, smartwatches, automotive electronics, and medical devices.
A senior Indian government official said, "We cannot continue to avoid China. The fact is, they produce the products we need for our assembly business. If we want to further deepen the supply chain, Indian companies must cooperate with Chinese companies." The Ministry of Information Technology in India announced an electronic component manufacturing policy earlier this year. It is widely expected that Indian companies will collaborate with Chinese entities to participate in the plan, as the latter possess relevant expertise.
Recently, India also resumed issuing tourist visas to Chinese citizens as part of a broader effort to restore bilateral relations.
Although the Indian government has managed to exclude China from some areas such as finished smartphones, imports from China continue, especially many electronic components. These components are essential for India's final assembly process, and New Delhi has almost no production base in this regard. The Indian Express previously reported that in the fiscal year 2023-2024, India's imports of electronic components from mainland China exceeded $12 billion, and from Hong Kong reached $6 billion, accounting for more than half of the total imports of such products in India. This indicates that India's continuous expansion in the electronics manufacturing sector does not mean a reduction in its reliance on Beijing. Over the past five years, the quantity of electronic products imported by India from mainland China and Hong Kong far exceeds the total from other major manufacturing centers such as South Korea, Japan, and all ASEAN countries. (Author: Sumya Redna Barik, translated by Xin Bin)
Original: https://www.toutiao.com/article/7533017088253641252/
Statement: This article represents the views of the author. Welcome to express your opinion by clicking the [up/down] button below.