{"id":7025715,"date":"2026-08-03T21:16:17","date_gmt":"2026-08-03T21:16:17","guid":{"rendered":"https:\/\/peraltafinancing.com\/uncategorized\/indias-tryst-with-destiny-in-bridling-the-dragon-spitting-fire-on-it\/"},"modified":"2026-08-03T21:16:17","modified_gmt":"2026-08-03T21:16:17","slug":"indias-tryst-with-destiny-in-bridling-the-dragon-spitting-fire-on-it","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=7025715","title":{"rendered":"INDIA’S TRYST WITH DESTINY IN BRIDLING THE DRAGON SPITTING FIRE ON IT"},"content":{"rendered":"


\n<\/p>\n

\n
\n<\/p>\n
\nIndia\u2019s
\nTryst with Destiny in Bridling the Dragon Spitting Fire on it<\/span><\/u><\/b><\/div>\n
\nThe
\nIndo-China Diplomacy:<\/span><\/u><\/b><\/div>\n
\nThe Wuhan and Mahabalipuram unofficial summits between
\nthe leaders of the world\u2019s two of the most populous countries exuded confidence
\nof building a new world order and held out prospects for regional co-operation
\nand peaceful co-existence.\u00a0 <\/span>But, by its
\nreckless aggression and belligerent bullying displayed against India, the modest
\ngains made by the unofficial summits were soon decimated by the Chinese side
\nonce again proving that its political system thrives in deceit and treachery
\nthat it can never be trusted.\u00a0 <\/span>Conspiracy
\ntheories to callous negligence allegations against the Chinese establishment in
\nits failure to contain the outbreak of Covid-19 notwithstanding, there are
\nreports that China had used the global pandemic to its economic advantage by
\nshoring up its exports and also by resorting to opportunistic takeover and
\nacquisition of foreign companies operating in its own country and in other
\nparts of the globe at highly discounted values. <\/span><\/div>\n
\nThe
\nDragon Spitting Fire on India: <\/span><\/u><\/b><\/div>\n
\nChinese investments in Indian corporate sector,
\nespecially in infrastructure, energy, technology start-ups and online marketing
\nenterprises, has already crossed US$ 26 billions(1). \u00a0<\/span><\/b>A report by the Confederation
\nof Indian Industries submitted to the Central Government in the late February
\n2020 highlights that India\u2019s dependency on China in terms of the share in India\u2019s
\nimport stands at 45% for electronics; 32% for machinery (capital goods); 38%
\nfor organic chemicals; 57% for furniture, bedding etc.; 28% for fertilizers;
\n25% for automotive parts and 68% for active pharmaceutical ingredients.\u00a0 <\/span>Many of the Chinese investments into Indian
\nInc. have been often camouflaged and multi-layered and routed through
\nunsuspecting countries with non-Chinese shareholders and directors exhibited by
\nsuch investor companies thereby not displaying any sign of foreign direct
\ninvestment flowing from China rendering the tracking of such investments almost
\ndifficult and complex.\u00a0 <\/span><\/span><\/div>\n
\nThe first wake up call to India came when India\u2019s
\npremier housing finance company i.e. HDFC Limited announced in March 2020 the
\nstock exchanges of the acquiring of a little more than 1 per cent of its stake
\nby the Peoples Bank of China.\u00a0 <\/span>The brutal
\nattacks by the Chinese army on June 16, 2020 in which 20 Indian soldiers guarding
\nour Line of Actual Control in the Ladakh region were martyred had sent shock
\nwaves across our country.\u00a0 <\/span>These tell
\ntale signs of diabolical designs by the Chinese establishment set alarm bells
\nringing in the Indian political circles.<\/span><\/div>\n
\nIndia\u2019s
\nResponses to Bridle the Dragon:<\/span><\/u><\/b><\/div>\n

\nIn the wake of the Peoples Bank of China scaling up
\nits investments in HDFC, the Indian regulators woke up to the possibility of China
\neffecting opportunistic takeover\/acquisition of Indian companies in the wake of
\nthe Covid-19 pandemic.\u00a0 <\/span>The Modi 2.0
\nGovernment introduced changes to its Foreign Direct Investment policy on
\n17.04.2020(2)<\/b>.\u00a0 <\/span>This Press Note stipulated that investments
\nby an entity of a country which shares border with India or where the
\nbeneficial ownership of an investment into India is situated in or is a citizen
\nof any such country, then, such investment can only be made with the approval
\nby the Government of India and not under the automatic route.\u00a0 <\/span>It was also further stipulated that any
\nchange in the existing or future FDI in an Indian entity, directly or
\nindirectly, resulting in the beneficial ownership falling within the scope of
\nthe above criteria would also require the approval of the Government.\u00a0 <\/span>Thus, the purport and intent of this Press
\nNote was mainly aimed at curbing any opportunistic takeover of Indian entities
\nby the Chinese investors, however, this policy may still fall short of
\nachieving its intended objectives if the investments were routed through Hong
\nKong or by multi-layered camouflaged investments through countries which do not
\nshare borders with India.\u00a0 <\/span>Almost around
\nthe same time, the Securities and Exchange Board of India had also directed all
\nthe designated depository participants to refer for its approval all new
\napplications received from foreign portfolio investors of the neighbouring
\ncountries specifically with a view to monitor investments coming in from China
\nor its citizens from other countries to prevent opportunistic takeover when
\nstock markets have been collapsing due to the Covid-19 global pandemic.\u00a0\u00a0<\/span><\/span><\/p>\n

\nThe Modi
\n2.0 Government also notified that no global competitive tendering shall be any
\nmore mandatory for contracts valued less than Rs.200 crores(3)<\/b>, which besides aimed at promoting the domestic industry especially
\nthose under the MSME sector, also has an indirect effect of shutting out
\nChinese tenderers from participating in such tenders either alone or in a joint
\nventure\/consortium route with Indian entities.<\/span><\/div>\n
\nIn order to curb the rampant import of tyres from
\nChina, a notification was issued on June 12, 2020 restricting the import into
\nIndia of all categories of the tyres named thereunder(4)<\/b>.\u00a0 <\/span>Although this
\nnotification did not directly name Chinese imports, the purport of the said
\nnotification was exclusively to prevent the dumping of Chinese tyres into India
\nharming our domestic tyre manufacturers.\u00a0
\n<\/span>Similar, non-country specific restrictions (but, by product classification
\naimed at Chinese goods) have also been issued by India in the recent past.<\/span><\/div>\n
\nCancellation
\nand Halting of Chinese Projects:<\/span><\/u><\/b><\/div>\n
\nAs a measure of economic retribution to the dastardly
\nbutchering of the Indian soldiers in the Ladakh border, the Indian Government rolled
\nout calibrated responses to check the expansion of the economic footprint of Chinese
\nin Indian Inc. which can harm the vital national interests. \u00a0<\/span>The Indian Railways, Department of Telecom and
\nseveral State Governments have recently either cancelled and\/or halted the
\nChinese contracts and investments into India valued at several thousand crores
\nof Rupees in the wake of the martyring of the unarmed Indian soldiers.\u00a0 <\/span>The Department of Telecom had also advised BSNL
\nand other private telecom operators to reduce the dependence on the Chinese
\nmade telecom equipment and devices as there could be possibility of malware and
\nsharing of critical Indian data and information by these manufacturers with the
\nChinese government.\u00a0 <\/span>The Ministry of
\nShipping had also directed all the ports in the country to hold up the clearing
\nof consignments arriving from Chinese ports for exhaustive checks. All supplies
\nto be made to Indian Government in e-tendering portals have been directed to
\ndesignate clearly the country of origin of the goods or equipment to be
\nsupplied by the tenderers so as to keep a watch over the Chinese goods and
\nproducts.\u00a0 <\/span>The boycott Chinese goods
\nmovement also picked up rapid pace in the country.\u00a0 <\/span>On June 29, 2020, the Ministry of Electronics
\nand Information Technology had also issued a notification banning the usage of
\n59 Chinese apps including Tik Tok, Halo, etc. citing that these apps were
\nprejudicial to the sovereignty, integrity of India, defence of India, security
\nof state and public order(5)<\/b>.<\/span><\/div>\n
\nResponses
\nby the Government of India:<\/span><\/u><\/b><\/div>\n
\nThe Government of India is highly conscious of the
\nbalance of trade between the two countries more skewed in favour of China, with
\nIndia being more dependent on import of Chinese goods and services leading to a
\nhuge trade deficit.\u00a0 <\/span>In order to reverse
\nthis trend and to bolster the indigenous industry, the Government of India has
\nbeen advocating a multi-pronged approach to reduce the dependency on the
\nChinese goods, services and investments, (a) by promulgating notifications and
\norders which although do not specifically name China, but, are aimed at
\nregulating or reducing the Chinese investments or goods into the country, as in
\nthe case of the recent change to the FDI policy, restriction on tyre imports,
\nremoval of global competitive tendering mandatory requirements for less than
\nRs.200 crores valued projects etc.; (b) by directly excluding Chinese
\ninvestments as in the case of sensitive telecommunication equipment and mobile
\napps; (c) by promoting self reliance through \u2018Make in India\u2019, \u2018Atma Nirbaar\u2019
\nand \u2018Vocal for Local\u2019 initiatives aimed at homegrown technology and expertise;
\n(d) imposition of additional tariffs and anti-dumping duty on Chinese imports.\u00a0 <\/span>Although the measures intended as above may
\nnot be able to overnight reduce the dependency on the Chinese goods and component,
\nyet, in the long run, our country may be able to shake off the China dependency
\nsyndrome and move towards self-reliance vis-\u00e0-vis<\/i>
\na neighbor with global dominance tendency and ruthless belligerency.<\/span><\/div>\n
\n(1)\u00a0 <\/span><\/span><\/span>Krishnan, Ananth, \u2018Following
\nthe Money: China Inc.\u2019s Growing Stake in India-China Relations\u2019<\/i>, Brookings
\nImpact Series 032020-01, March 2020, Brookings Institution India Centre.<\/span><\/div>\n
\n(2)\u00a0 <\/span><\/span><\/span>Press Note No.3(2020 series) issued vide DPIIT F.No.5(5)\/2020-FDI
\nPolicy dated April 17, 2020 issued by the Department for Promotion of Industry
\nand Internal Trade, Ministry of Commerce & Industry, Government of India. <\/span><\/div>\n
\n(3)\u00a0 <\/span><\/span><\/span>Notification F.No.12\/17\/2019-PPD dated May 15, 2020 issued
\nby the Ministry of Finance, Government of India.<\/span><\/div>\n
\n(4)\u00a0 <\/span><\/span><\/span>Notification No.12\/2015-2020 dated June 12, 2020
\nissued by the Ministry of Commerce & Industry, Government of India.<\/span><\/div>\n
\n(5)\u00a0 <\/span><\/span><\/span>Press Note dated June 29, 2020 issued by the Ministry
\nof Electronics and Information Technology, Government of India.<\/span><\/div>\n

<\/div>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"

India\u2019s Tryst with Destiny in Bridling the Dragon Spitting Fire on it The Indo-China Diplomacy: The Wuhan and Mahabalipuram unofficial summits between the leaders of the world\u2019s two of the most populous countries exuded confidence of building a new world order and held out prospects for regional co-operation and peaceful co-existence.\u00a0 But, by its reckless […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[189389,16801,735,1074,17725,138035,189388],"dealstore":[],"offerexpiration":[],"class_list":["post-7025715","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-bridling","tag-destiny","tag-dragon","tag-fire","tag-indias","tag-spitting","tag-tryst"],"yoast_head":"\nINDIA'S TRYST WITH DESTINY IN BRIDLING THE DRAGON SPITTING FIRE ON IT - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=7025715\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"INDIA'S TRYST WITH DESTINY IN BRIDLING THE DRAGON SPITTING FIRE ON IT - 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