Since the Sino-Indian border standoff, the Indian government has successively introduced a number of tough policies against China in the economic field, resulting in a deteriorating business environment for Chinese-funded enterprises in India. According to a Reuters report on the 12th, the Indian taxation authority said on the 11th that it had raided several Chinese-funded business entities and their affiliates in India in the name of investigating money laundering and operating illegal underground banks. In addition, India’s “Economic Times” said on the 12th that the All-India Traders Federation recently sent a letter to India’s Minister of Electronics and Information Technology Prasad, asking the government to formally exclude Huawei and ZTE from India’s 5G network construction.The Indian tax authorities stated in a statement that several Chinese and their partners, bank employees, and certified public accountants were suspected of laundering money through shell companies, and many shell companies established more than 40 bank accounts, with the amount involved up to 10 billion rupees (1 Rupee is about 0.1 yuan). According to Indian media reports, the operation received “intelligence support” from relevant departments in advance. During the operation, evidence involving illegal Hong Kong dollar and US dollar transactions through underground banks was seized. However, the statement did not disclose the specific time of the action or the type of related “entity” and other details, nor did it name the companies and individuals suspected of participating in money laundering.
Regarding the above report, Chinese Foreign Ministry spokesperson Zhao Lijian said at a regular press conference on the 12th that he did not know the situation. He emphasized that the Chinese government has always required Chinese companies to carry out foreign cooperation on the basis of abiding by international rules and local laws and regulations, and at the same time is committed to safeguarding the legitimate rights and interests of Chinese companies and citizens. It is hoped that the Indian side will provide a fair, just and non-discriminatory environment for the normal operation of Chinese companies in India.At the same time, India’s tough policy towards China may also extend to the field of 5G construction. In the letter to Prasad, the All India Chamber of Commerce not only requested the government to formally exclude Huawei and ZTE from India’s 5G network construction, but also urged all Indian telecom operators to take the initiative to abandon the use of the two companies’ 5G. Technology and equipment. Other industry organizations such as the Indian Telecommunications Equipment Manufacturers Association also hope that the government will consider using products made in India in future network upgrades, especially for network construction in borders and sensitive areas. It is reported that the relevant working group of the Indian government is already studying whether to allow the aforementioned Chinese companies to participate in the upcoming 5G commercial trials. According to people familiar with the matter, the relevant government departments have clearly proposed to prohibit the two companies from participating in 5G commercial trials and network construction in India.According to the “Global Times” reporter, due to the deterioration of the business environment in India, many Chinese companies have suspended or considered suspending their business in India. “The Times of India” recently quoted people familiar with the matter as saying that TikTok has halted recruitment activities in India and redistributed some management positions, and some employees are also seeking to leave. Club Factory, another cross-border e-commerce platform previously banned by the Indian government, has also suspended operations in the Indian market and suspended payment settlement with Indian suppliers on the grounds of force majeure.
According to the Times of India, India’s Chief of Staff of Defense Rawat briefed the parliamentary group that he is ready for a long-term confrontation with the Chinese army along the line of actual control and will conduct a winter military deployment in the “Ladakh region”. . He said that the downgrade of tensions on the border between India and China may take a long time, “but India is prepared for anything that may happen.” An anonymous source told the Global Times reporter that India’s repeated pressure on China hopes to gain a “first mover” in the border standoff. If a “long-term confrontation” is formed in the future, bilateral relations are likely to decline further.