NEW DELHI: The federal government has recognized not less than seven Chinese language corporations in India with alleged direct or oblique hyperlinks with People’s Liberation Military (PLA) together with Chinese language enterprise capital investments in India together with “huge names” the place the advantages of civilian innovation are suspected for use for China’s protection sector.
These embrace Alibaba, Tencent, Huawei, Xindia Steels Ltd which is taken into account as one of many largest joint ventures between India and China; Xinxing Cathay Worldwide Group which has arrange a producing facility in Chhattisgarh with an funding of Rs 1,000 crore; China Electronics Know-how Group Company and SAIC Motor Company Restricted.
“Now we have zeroed in on some corporations with hyperlinks with the Chinese language military however what motion could be taken is but to be determined,” mentioned a supply within the know of the inner note.
The event comes after New Delhi banned 59 Chinese language apps within the nation and is prompted by a US-China Financial and Safety Assessment Fee, a congressional fee of the US which mentioned that the Chinese language authorities’s military-civil fusion coverage goals to spur innovation and financial progress by way of an array of insurance policies and different government-supported mechanisms, together with enterprise capital (VC) funds, whereas leveraging the fruits of civilian innovation for China’s protection sector.
“This raises direct query mark on Chinese language VC investments in India together with huge names like Alibaba and Tencent,” the federal government mentioned in an inner note.
The US had in June put collectively an inventory of 20 corporations which it mentioned are owned or managed by China’s navy, opening them as much as potential further American sanctions.
Inside research of the federal government in 2018 had mentioned that some Chinese language traders have already gained management over sure Indian startups which have invested in by leveraging the co-investing behaviour. E-commerce, on-line lending and social media & content material have been the highest three market segments by way of variety of corporations that obtained Chinese language funding.
SAIC Motor Company Restricted is the father or mother firm of MG Motors, which sells MG Hector in India. One of many subsidiaries of SAIC is Nanjing Car which was beforehand a automobile servicing unit of PLA .