Even though the Indian government is embarking on a review of Chinese companies on allegations of financial mismanagement and both countries differ in trade figures, the two Asian giants held a recent round of border negotiations led by foreign offices to discuss border progress in East Ladakh. The two sides have two stations in the foreign office and a military level to discuss the border situation, which has been tense since May, 2020, when divisions began. The final round of diplomatic negotiations under the auspices of the Working Mechanism for Consultation and Coordination on India-China Border Affairs (WMCC) was held in November, 2021. Negotiations between senior military officials lasted two and a half times months ago.
In March, Chinese Foreign Minister Wang Yi visited India, becoming the highest-ranking government official from Beijing since taking office. In the 24th round of the WMCC held on Tuesday, May 31, the Indian side was led by the Secretary-General of the Ministry of Foreign Affairs (East Asia), Naveen Srivastava. The Chinese side was led by the director general of the Boundary and Oceanic foreign ministry, Hong Liang. An Indian media report on the meeting said the two sides “exchanged views on the current situation in the LAC in the Western Region of Eastern Ladakh”.
Bilateral relations
They agreed that, as instructed by the two Foreign Ministers, both sides should continue negotiations through military and logistical channels to resolve outstanding issues with the LAC in advance in order to create conditions for normalization of bilateral relations, “the MEA said in a public note. He added that the two countries also agreed to hold follow-up talks between senior management ahead of time. The next round will aim to achieve “the goal of not completely colluding with all LAC-affiliated conflicts in the Western Region in accordance with existing bilateral agreements and agreements,” the document said.
China’s Foreign Ministry said the two members had “exchanged views openly and deeply” on the current situation. As a machine translation, Chinese doctrine also stated that military talks would be held “immediately” to resolve “problems remaining in the western part of the border in accordance with the principle of equal security”. The language used in the study indicated ongoing conflict between the two countries in finding a final settlement solution, with India emphasizing the implementation of current border agreements while China emphasizes the need for equal and equitable security.
China-based companies
At the same time, China also urged India to “provide a fair, equitable and non-discriminatory business environment to Chinese companies” after the media reported that Chinese technology companies ZTE and Vivo were under investigation by Indian authorities. Earlier in the day, Bloomberg reported that India’s Ministry of Commerce had obtained information from unnamed sources of possible violations, including fraud by the two companies. India has declined sharply in China-based companies since 2020 after the start of the suspension. More than 200 mobile applications, including TikTok and Alibaba, are blocked.
In December 2021, the Income Tax department conducted searches in more than a dozen locations of Chinese mobile operators, including Oppo, Xiaomi and OnePlus. Last month, the Enforcement Directorate (ED) withdrew more than Rs 5,500 crore from Xiaomi bank accounts in India for allegedly violating foreign trade laws. It was suspended following a court order.
Huawei Telecommunications’ India official Xiongwei Li, a Chinese national, was suspended from boarding a plane for Bangkok from Delhi on May 1 on a probationary basis. He has gone to the Delhi High Court to dismiss it on the grounds that the letter of reference of the Indian authorities violates Indian laws. During a daily forum on Tuesday, Chinese Foreign Ministry spokesman Zhao Lijian said China had “closely followed the situation”.
Chinese companies in protecting their legal rights and interests
“The Chinese government has always asked Chinese companies to respect the rules and regulations when doing business overseas. In the meantime, we strongly support Chinese companies in protecting their legal rights and interests. The Indian side must act in accordance with the laws and regulations and provide a fair, equitable and non-discriminatory business environment for Chinese companies operating in India, ”he said.
Zhao also challenged India’s trade ministry figures that the United States has surpassed China to become India’s leading trading partner in 2021-22.According to the Department of Trade, 2021-22, bilateral trade between the US and India stood at $ 119.42 billion compared to $ 80.51 billion in 2020-2021.In 2021-22, India’s double trade with China totaled $ 115.42 billion compared to $ 86.4 billion in 2020-21, data showed.
However, Foreign Ministry spokesman Zhao said China’s official figures show that China’s trade stands at $ 125.66 billion by 2021-22 and rises $ 100 billion in annual trade revenue for the first time, meaning China is still India’s largest trading partner. He noted that the differences in trade figures published by China and India are the result of different statistical estimates.
“China is not opposed to developing India’s normal trade relations with other countries and has little interest in changing trade standards,” Zhao asserted. However, he added, “Our concern is whether the Indian side is willing and taking real steps to create a just, transparent, sustainable and prudent trade and investment environment, further enhancing mutual benefit between the two sides and bringing tangible benefits to both countries and individuals.” .A Chinese Foreign Ministry official reiterated that the border issue should not go beyond all relations and should “put the right place in bilateral relations and under effective control and management”.
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