China, the ever opportunistic country is playing its cards right!
China which is responsible for the spread of coronavirus in the whole world is successful to a great extend to curb the spread of virus in its own country. Wuhan, where the virus originated is open for business and the lockdown has ended.
Now, it is planning to invest in all other countries and conquer the world.
China has huge investments in companies around the world. Now, shares of big companies have become very cheap after the global markets fell due to spread of coronavirus. In such a situation, China has aggressively accelerated investment in companies of America, Europe, Asia including India.
Recently, China’s central bank People’s Bank of China increased its stake in India’s HDFC bank to more than one percent. The government tightened the rules for foreign investment coming from neighbouring countries, including China. China has also objected against this amendment in India’s FDI policy. They have said it’s against the principles of WTO. However, India experts have given a robust and vigorous reply stating that “there is no agreement on FDI in the WTO. The rules of this organization do not apply to investment related issues. Therefore, India has every right to make such decisions in the interest of its industries”.
However, experts believe that China’s investment cannot be completely banned.
India should wear its binoculars on and keep close watch on China’s moves.
China’s omnipresence in India
Chinese companies are spread all over India in the field of food, toys, mobiles, automobiles, financial transactions, home lighting and entertainment. China has invested in several companies including Paytm, Swiggy, Bite Dance, Xiaomi, Snapdeal, Ola, Tiktok and Zomato. Chinese companies dominate the Indian market in the electronic products, steel and pharmaceutical sectors.
China is ruling the markets worldwide on the strength of its technology. It is ahead of many countries in the world in many respects including medical, space, electronic and digital technology. Experts say that given the mastery of technology in China and its pervasive presence in India, if a ban is imposed then Indian customers are going to suffer as well.
Data theft risk
China has access to millions of consumers in India. Due to this, there is a risk of crores of data being stolen. Experts say that more than 50 apps are already installed in Chinese mobile companies. At the same time, apps made in China ask for such information which has no meaning with that work. These apps can become a threat!
Earlier any neighbouring country could invest in India
Earlier neighbouring countries of India didn’t required Indian government approval for foreign investment except Pakistan and Bangladesh. But India has changed the rules after China’s Central Bank increased it’s stake in HDFC recently. Investment from all neighbouring countries, including China, will require government approval from now onwards. This move is initiated to protect India domestic industries in the face of this ongoing crisis.
China’s potential investment in Indian companies :
- Snapdeal – alibaba : $70 million
- Big Basket – Alibaba : $25 million
- Zomato – Alibaba : $20 million
- Paytm – Alibaba : $50 million
This shows tremendous domination of China in the Indian market.
The seed of China’s domination of the world has been sown!