As the border issue of India and China comes once again to the boil, companies of both the countries are facing tension as to how drastic the impact it will put on them. The business of both India and China are under the clouds after the start of face-offs between both the countries from late April. The face-off which took place in the mid-night of 15th June was the deadliest in the past four decades. In this incident in Galwan valley, 20 Indian soldiers were martyred and more than 40 casualties were faced by the Chinese PLA.
In response to that, Indian Prime Minister Mr. Narendra Modi said, “Martyrdom of 20 soldiers won’t go waste”. Having said that, the government of India has ordered all the telecom companies to not use the server of China or any item related to communication. Now, as the rage continues in India to boycott Chinese goods, companies like Alibaba group, Xiaomi corp. and Tata motors are in a great threat economically as they have a large investment in both the large countries.
- Ladakh Standoff: Chinese PLA moves back troops 2-2.5 km, high-level talk continues
- 20 Indian soldiers martyred, China claims Galwan Valley as its territory
India and China together account for a population exceeding 2.7 billion and are a big market for each other’s companies. Both countries are on the largest trading partner of each other. Alibaba operates data centers in India and its “UC Browser” is a popular mobile browser in India by page views, Xiaomi, on the other hand, was the top smartphone brand in India by shipment in the fourth quarter of 2019, with 29% market share. Tata Motors, the parent of Jaguar Land Rover, said that it is seeing the beginnings of a demand rebound in China as the world’s second-largest economy opens up. This sale is very crucial for Tata after the slump of demand that began even before Covid-19 in India.
India’s state-run telecom companies may stop sourcing equipment from Chinese companies. The government is likely to prohibit private mobile phone operators from using gear supplied by companies like Huawei and ZTE.
Raising tension in the Indo-China border may dull China’s appetite for India’s e-commerce companies as they add to the recent change in policy that puts Chinese investors on a list mandating prior clearance for all investments.
#Boycottchina is the tagline prevailing in the country to show the anger against the Chinese. At the same time, we also need to understand that Indian companies also have a market in China and it also can put a ban on our products. We need to safeguard the county at any cost but with the proper national and international policies.