China threatens to ban medical supplies to India over FDI rules

BanglaHunt Desk: China is in trouble as India has taken tough decisions on foreign investment (FDI). The decision was taken by the Indian government to prevent China from expanding into India. China has accused the Indian government of violating WTO policy.

Under the new FDI rules, citizens or entities of any country bordering India now need government approval before investing. Previously, only the citizens and organizations of Pakistan and Bangladesh needed the approval of the Government of India. But now the Indian government has tightened FDI rules to corner China because of the corona virus. A spokesman for the Chinese embassy in Delhi said, “We hope that India will correct its discriminatory policy and make the same rules for investment in all countries.”

The Global Times reports, “It is feared that China may take over Indian companies and control some Indian territory.” India also imports large quantities of raw materials from China to manufacture medicines. If China imposes sanctions on those exports after this arrangement, there will be a crisis in India. And India's investment in China will suffer.

The Global Times also wrote that India's closed doors could open a second window of opportunity for Chinese companies. Many Chinese companies want to expand their business abroad once the epidemic is over and they can go to Southeast Asian countries for it. But in the current situation, if India now proves unsafe for Chinese companies, they will be interested in getting help from China in Southeast Asian countries who will try to grow their business.