The Indian Prime Minister removed the Weibo account with a picture taken with Xi Jinping
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India seeks to remove Chinese companies from government bidding packages

Conflict between India and China in the Himalayas has not shown signs of cooling as recently India continued to tighten restrictions on Chinese companies seeking to provide goods or services to government as a form of enhanced economic retaliation against Beijing, according to the newspaper Nikkei.

Modi Prime Minister (right) and President Xi Jinping (Image: Flickr)

Under the newly revised government procurement regulations last week, businesses in countries bordering India must register with the relevant authorities and get permission from the Ministry of Foreign Affairs and the Ministry. Interior before being registered for bidding. This provision applies to a range of public enterprises, state banks, as well as public-private partnership projects.

Although India borders China, Nepal, Bhutan, Pakistan, Bangladesh and Myanmar, the tightening of this provision is believed to be aimed at China, because only it is involved in major government procurement projects. India.

New Delhi said the measures were aimed at “strengthening national defense and security” of the country, but the clear goal was to completely freeze Chinese companies out of India’s public sector – continued a tough move towards China after a border clash in mid-June left 20 Indian soldiers dead.

Bihar State in eastern India has canceled a contract to build a bridge over the Ganges River worth US $ 390 million because of Chinese companies involved, according to local media. Meanwhile, the state of Maharashtra froze three Chinese investments.

India has also tightened inspections of shipments from China, leaving many products such as mobile phones stuck in ports.

An increase in tariffs on solar panels could also be considered. India has to add this source of energy to solve the electricity shortage and it is importing about 80% of solar panels from China. Earlier in July, Prime Minister Narendra Modi said India must reduce its dependence on imported solar equipment and the government is expected to impose import restrictions on certain types of products from Beijing. .

Last month, India banned 59 applications from Chinese companies, including TikTok and WeChat. PTI news agency reported on Monday (July 27) that 47 other applications that simulate those blocked applications were also banned.

China was the leading exporter to India in fiscal 2019 with US $ 474 billion, accounting for 14% of total Indian imports. China’s foreign direct investment in India for the five years to the 2020 fiscal year totaled $ 4.3 billion, more than double the previous five years.

Thanh Thuy (according to Nikkei)

See more:

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  • India has asked its soldiers to delete 89 phone apps, including Facebook and Tinder

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