India-China News / China will even rub its nose in front of India, this condition surprised even the dragon

India-China News: Ever since the US announced to impose tariffs of up to 245% on China, there has been an upheaval in global trade. To overcome this setback, China has now turned to India. Recently, news came that China has agreed to accept all the conditions of the Indian government to do business in India. And now, the next move of the Indian government has come to the fore - in which China will get approval for only 10% equity investment in exchange for technology transfer to India.

China's return to India: compulsion or strategy?

In the tariff war between the US and China, China has suffered the biggest setback in the electronics and technology sector. Due to the cost of entering the US market, the profit margin of Chinese companies has started decreasing. In such a situation, India, a fast-growing market and production hub, has emerged as a new option for China. But this time the Indian government is in no mood to give any relaxation.

India has made it clear to Chinese companies that if they want to do business here, they will have to transfer technology — and in return they will be allowed to hold only up to 10% equity.

What are India's conditions?

The Indian government's focus is on local manufacturing and self-reliance. In such a situation, only those Chinese companies will be able to invest in India, which will promote local production. Apart from this:

If foreign companies shift their units from China to India, then Chinese companies can get a maximum stake of up to 49% — but this will be applicable only on a case-by-case basis.

Chinese investment in sensitive sectors like drilling machines, solar panels and electronics will be under special monitoring.

The government does not want India to become another Vietnam, where the entire electronics ecosystem has gone into the hands of China.

Technology transfer is India's real agenda

According to sources, India wants to take advantage of this opportunity to acquire Chinese technology — but on its own terms. The Indian government knows that Indian companies today need technology upgrades, and Chinese companies need investment. This deal will now be possible only with conditions.

Growing closeness with America

India and America are going to sign a Bilateral Trade Agreement (BTA) by the end of this year. Through this deal, India wants to increase the share of its products in the American market. At the same time, companies like Apple have also started setting up manufacturing setups with India and its Taiwanese-Japanese suppliers instead of China.

Tata Electronics is a big example of this, which has started manufacturing enclosures for iPhone. Now, enclosures for all Apple devices except iPad are being made in India and exported.

China's return on India's terms

India now wants not just foreign investment, but also quality and technology. The US-China tariff war has given India a strategic opportunity, and India is capitalizing on it very cleverly. India is no longer an easy market for China as before - it will now have to bow down, and that too on Indian terms.