New Delhi has since approved a few significant projects, including a manufacturing venture between India’s Dixon Technologies and Chinese smartphone maker Vivo Mobile.
But that has not been enough to attract back leading Chinese companies like vehicle makers BYD and Great Wall Motor, which shelved planned investments in India after facing heightened scrutiny by New Delhi, according to an Indian government source.
Great Wall Motor and BYD declined to comment.
“PARTNERS, NOT COMPETITORS”
Chinese companies’ proposed investments in India are facing more scrutiny from Beijing itself, including in sectors where sophisticated manufacturing and high-end technology may be involved, the source and another person said, both requesting anonymity as they were not authorised to speak to the press.
China’s foreign ministry told Reuters that Xi and Modi, who briefly met this month at a regional forum in Kyrgyzstan, think the two countries are “partners, not competitors, and they represent opportunities, not threats, for each other’s development”.
India’s trade and foreign ministries did not respond to requests for comment.
New Delhi has declined to approve a proposal by Alipay, a platform related to China’s Ant Group, to be linked to India’s instant payments system, citing national security concerns, Reuters reported last week.
The Indian government is also considering a recommendation by its Serious Fraud Investigation Office (SFIO) that Chinese cellphone maker Xiaomi be investigated for alleged irregularities in its business in India and breach of foreign investment laws, Reuters has reported. Xiaomi said it complies with all local laws and has not received any communication from the SFIO.
At the same time, one of the Indian sources said, Chinese authorities have asked companies not to sell critical technology and infrastructure to India, including port equipment, solar panels and mobile manufacturing equipment. China’s commerce ministry did not respond to a request for comment.
