<p>China on Monday protested the changes India recently made in its foreign investment policy, stating that the “additional barriers” set by Prime Minister Narendra Modi’s Government in New Delhi violated World Trade Organization’s “principle of non-discrimination”.</p>.<p>Beijing asked New Delhi to reverse the recent revision of the policy on foreign investments, to roll back “discriminatory practices” and to treat investment from different countries equally.</p>.<p>The Department for Promotion of Industry and Internal Trade (DPIIT) of the Ministry of Commerce and Industry revised the policy on foreign investments on Saturday, making it mandatory for all entities based in the neighbouring countries to seek prior approval from the government before investing in India.</p>.<p>While only the entities based in Bangladesh and Pakistan earlier needed approval from the government to invest in India, the new revision made it a mandatory requirement for all neighbouring countries, including China.</p>.<p>New Delhi’s move is aimed at preventing attempts by China’s state-owned entities to take over the companies in India, taking advantage of their stress on the economy in the wake of the COVID-19 pandemic.</p>.<p>China on Monday formally lodged a protest against the recent move by India.</p>.<p>Ji Rong, the spokesperson of the Embassy of China in New Delhi, issued a statement, saying that the revision of the foreign investment policy would make it “much difficult” for companies from China to invest in India.</p>.<p>She noted that China’s cumulative investment in India exceeded $ 8 billion by December 2019. She underlined that China had invested “far more than the total investments” by other neighbouring countries of India.</p>.<p>“The Chinese investment has driven the development of India’s industries, such as mobile phone, household electrical appliances, infrastructure, and automobile, creating a large number of jobs in India, and promoting mutual beneficial and win-win cooperation,” said Ji, adding: “The Chinese enterprises actively made donations to help India fight COVID-19 epidemic”.</p>.<p>She pointed out that the decisions of the companies to invest and operate in a certain country were guided by the economic fundamentals and business environment of the concerned countries. “Facing the economic downturn caused by (the) COVID-19 (crisis), (the) countries should work together to create a favorable investment environment to speed up the resumption of production and operation of the companies”. “The additional barriers set by Indian side for investors from specific countries violate WTO’s principle of non-discrimination, and go against the general trend of liberalization and facilitation of trade and investment,” said the spokesperson of the Chinese Embassy.</p>.<p>“More importantly, they do not conform to the consensus of G20 leaders and trade ministers to realize a free, fair, non-discriminatory, transparent, predictable and stable trade and investment environment, and to keep our markets open,” she said, adding: “Companies make choices based on market principles. We hope India would revise relevant discriminatory practices, treat investments from different countries equally, and foster an open, fair and equitable business environment”.</p>
<p>China on Monday protested the changes India recently made in its foreign investment policy, stating that the “additional barriers” set by Prime Minister Narendra Modi’s Government in New Delhi violated World Trade Organization’s “principle of non-discrimination”.</p>.<p>Beijing asked New Delhi to reverse the recent revision of the policy on foreign investments, to roll back “discriminatory practices” and to treat investment from different countries equally.</p>.<p>The Department for Promotion of Industry and Internal Trade (DPIIT) of the Ministry of Commerce and Industry revised the policy on foreign investments on Saturday, making it mandatory for all entities based in the neighbouring countries to seek prior approval from the government before investing in India.</p>.<p>While only the entities based in Bangladesh and Pakistan earlier needed approval from the government to invest in India, the new revision made it a mandatory requirement for all neighbouring countries, including China.</p>.<p>New Delhi’s move is aimed at preventing attempts by China’s state-owned entities to take over the companies in India, taking advantage of their stress on the economy in the wake of the COVID-19 pandemic.</p>.<p>China on Monday formally lodged a protest against the recent move by India.</p>.<p>Ji Rong, the spokesperson of the Embassy of China in New Delhi, issued a statement, saying that the revision of the foreign investment policy would make it “much difficult” for companies from China to invest in India.</p>.<p>She noted that China’s cumulative investment in India exceeded $ 8 billion by December 2019. She underlined that China had invested “far more than the total investments” by other neighbouring countries of India.</p>.<p>“The Chinese investment has driven the development of India’s industries, such as mobile phone, household electrical appliances, infrastructure, and automobile, creating a large number of jobs in India, and promoting mutual beneficial and win-win cooperation,” said Ji, adding: “The Chinese enterprises actively made donations to help India fight COVID-19 epidemic”.</p>.<p>She pointed out that the decisions of the companies to invest and operate in a certain country were guided by the economic fundamentals and business environment of the concerned countries. “Facing the economic downturn caused by (the) COVID-19 (crisis), (the) countries should work together to create a favorable investment environment to speed up the resumption of production and operation of the companies”. “The additional barriers set by Indian side for investors from specific countries violate WTO’s principle of non-discrimination, and go against the general trend of liberalization and facilitation of trade and investment,” said the spokesperson of the Chinese Embassy.</p>.<p>“More importantly, they do not conform to the consensus of G20 leaders and trade ministers to realize a free, fair, non-discriminatory, transparent, predictable and stable trade and investment environment, and to keep our markets open,” she said, adding: “Companies make choices based on market principles. We hope India would revise relevant discriminatory practices, treat investments from different countries equally, and foster an open, fair and equitable business environment”.</p>
