Sikkim standoff can have negative impact on India-China business relationship

New Delhi: Chinese business interests in India have dwindled in the last year or so, with FDI inflows from China not that much, despite investment into sector like telecom hardware witnessed an upsurge, in addition to the increasing trend of Chinese banks ramping up their exposure to Indian companies, more so in the e-commerce sector.

But the recent tiff between the two countries on the Sikkim border could have a negative impact on whatever little momentum that was there to be seen on the inbound investment trend.

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The Chinese companies that have come in India includes electronics and handset manufacturing companies like Oppo, ViVo, TCL and Lenovo.

On the trade side of thing, the bilateral engagement is overwhelmingly weighed in favour of China.

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It is worthwhile mentioning that Indian power and telecom companies have been purchasing equipment’s from Chinese manufacturers. Reliance Power and Reliance Communication were one of the first companies to go for Chinese funding.

Experts believe that China has modify its approach and strategy towards India plenty of times over the last 15 years since they opened up in 2001.

India has levied anti-dumping duty on 167 Chinese products — the highest in the world.

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