Thread: The Chinese Consultate in India has reacted to India's restriction on investments from states with which it has land borders (i.e. China, because that's where much of the investment in India has come from).
medianama.com/2020/04/223-ch…
medianama.com/2020/04/223-ch…
Chinese Investment in India is over $8 billion, and it has been a substantial investor in Indian tech startups. Some big names Sharechat, Paytm, Paytm Mall, Byjus, Gaana, Hike, MX Player, Snapdeal, Zomato, Dream11, Swiggy, Udaan +
medianama.com/2020/04/223-ch…
medianama.com/2020/04/223-ch…
+Practo, Bigbasket, DailyHunt, ZestMoney, Mygate, Ola, Oyo, PolicyBazaar, Quickr, Delhivery and others.
medianama.com/2020/04/223-ch…
CTrip owns almost half of India’s largest online travel company MakeMyTrip. medianama.com/2019/04/223-ch…
medianama.com/2020/04/223-ch…
CTrip owns almost half of India’s largest online travel company MakeMyTrip. medianama.com/2019/04/223-ch…
Chinese Embassy has asked India to revise the policy + treat investments from different countries equally, saying that it's a "Violation of WTO’s principles" and does “not conform to the consensus of G20 leaders and trade ministers to +
medianama.com/2020/04/223-ch…
medianama.com/2020/04/223-ch…
realize a free, fair, non-discriminatory, transparent, predictable and stable trade and investment environment, and to keep our markets open”
The key trigger: People’s Bank of China increased its shareholding in HDFC Bank to 1.01%
medianama.com/2020/04/223-ch…
The key trigger: People’s Bank of China increased its shareholding in HDFC Bank to 1.01%
medianama.com/2020/04/223-ch…
India's not alone. European Commission has issued guidelines to protect critical European assets and technology in the current crisis trade.ec.europa.eu/doclib/press/i…
Impact:
1. Indian internet biz, especially those which are online+offline are struggling. Difficult for them to raise money from Chinese investors, even existing investors. They'll have to go elsewhere. This will also push market consolidation, rollups.
medianama.com/2020/04/223-ch…
1. Indian internet biz, especially those which are online+offline are struggling. Difficult for them to raise money from Chinese investors, even existing investors. They'll have to go elsewhere. This will also push market consolidation, rollups.
medianama.com/2020/04/223-ch…
2. This will slow down in the pace of investment from Chinese co's in India, because of the bureaucratic layer being added. The additional layer of scrutiny on every investment might also make Chinese investors vary of investing in India.
medianama.com/2020/04/223-ch…
medianama.com/2020/04/223-ch…
3. A new trade issue between India and China gets created. China will seek its relaxation in exchange for some concessions in the future. Relaxation of sorts might eventually be in the offing (applicable to investments over x% or x amount, for example). medianama.com/2020/04/223-ch…
Will entrepreneurs welcome this change? Unlikely if they need money. Those with cash in bank will seek to dilute their Chinese investors (and their control). Not clear who will replace Chinese funding in India. Going to be tricky. medianama.com/2020/04/223-ch…
