Chinese state-owned media house Global Times (GT) reported that two Chinese chambers of commerce based in India have requested the Indian government to create an “open, fair, and non-discriminatory business environment” for Chinese businesses operating in India.
The Chinese Chamber of Commerce in India and the India China Mobile Phone Enterprise Association sent statements to the media house on Sunday saying that Chinese mobile phone companies in India have been facing unusual difficulties. According to the statement, the companies are unable to carry out normal production and operations due to sudden inspections and fines by Indian authorities.
The statement argued that this treatment is unwarranted, given that the 200 Chinese manufacturers and 500 trading companies in India, with a total investment portfolio of more than $3 billion, have created more than 500,000 local jobs.
“Their confidence in developing in India is shaken. These practices are not conducive to India’s initiative on investment promotion and international economic and trade cooperation,” the statement read.
Please read the response to media query by Spokesperson of the Chinese Embassy in India on Indian tax authorities’ investigation on some Chinese enterprises: https://t.co/10nU4eQGX2 pic.twitter.com/dbbWcPdpEQ
— Wang Xiaojian (@ChinaSpox_India) December 23, 2021
The news comes after Indian tax authorities launched a broad investigation of Chinese-run companies in India. Leading Chinese cell phone companies such as Oppo, Xiaomi, and OnePlus were reportedly targeted.
While the investigation is still ongoing, some Chinese analysts cited by GT claim that the business environment in India is not conducive not only for Chinese enterprises but for all foreign companies. The analysts pointed out that “non-market factors” in India have had large and “unpredictable effects” on business and caused several problems, which has prompted several Western companies to pull out from the country.
It was also reported yesterday that New Delhi levied antidumping duties on five Chinese products, including certain aluminium goods and chemicals, for five years to help protect local manufacturers from cheap Chinese imports. India has historically levied a majority of anti-dumping cases against imports from China.
The Chinese Embassy in India has raised concerns about the latest levies. According to a statement on the embassy’s website: “The Chinese government has always required Chinese companies to operate in compliance with laws and regulations overseas and is also committed to safeguarding the legitimate rights and interests of Chinese enterprises and citizens.” It further declared that “the hard-won development of China-India economic and trade cooperation is in the common interests” of both countries.
Despite the several domestic boycotts of products made in China, the Chinese General Administration of Customs reported that trade volume between the two countries hit a record high of $100 billion in November. Referring to this, another feature published by GT on Sunday said that although some people in India are concerned about the trade deficit with China and have advocated for greater independence, “the data speaks for itself.”