China’s People’s Bank buying 1.75 crore shares of HDFC Bank (worth about Rs 3,000 crore) mainly during January-March 2020 has brought into focus growing Chinese investment in India. The People’s Bank is a counterpart of our RBI. Overall by March 2020, China has invested $26 billion plus in India – up by 24.4 billion plus since 2014, when its investments were mere $1.6 billion.
China has funded 30 Indian start-ups with a cumulative investment of about $4 billion. This despite rhetoric at home about boosting start-ups and MSMEs. Multiple Chinese apps are raking in millions from India. Jack Ma made 40% investment in government-sponsored PayTM when he visited India in 2015.
Pitfalls of Zoom were realized only when data of 500,000 hacked accounts was put on sale on the dark web. Cashing on Coronavirus, China timed Zoom with lockdowns around the world. Even our defence minister was seen using it. China’s largest electric car company BYD, intent to enter India, has become the biggest face-mask producer.
Chinese companies have invested $346 million in grocery suppliers, another $100 million in a sports platform, in addition to investing in mobile companies, e-commerce and capital investments. None of these companies incidentally contributed a penny to the PM-CARE Fund.
China has also been ‘donating’ and selling Coronavirus testing kits, ventilators, PPEs and face-masks to multiple countries, most of which are faulty or dud. China never apologizes for such pathologically dastardly acts citing private Chinese companies. But there are no exports or FDI by Chinese companies, private or otherwise, that are not supported and monitored by China’s government.
Yet countries must buy such equipment from China because no other source can supply such quantities. The world has failed to learn from earlier pandemics and China produced the equipment in advance simultaneous to experimenting with viruses – China Daily boasted in 2018 that Wuhan was repository of 15,000 viruses.
China has been indulging in immoral acts like marketing fake medicines with the label ‘Made in India’. One such consignment was caught in Nigeria. Recently, a consignment of Chinese goods received by the firm ‘Jubilant Generics’ in Mysuru was allegedly found to be virus infected. This has reportedly resulted in hospitalization of 20 handlers and quarantine for all 1400 employees of the firm. China coolly passes on such blame to its private companies.
When the previous recession lasting 18 months hit the world in December 2007, the talk here was it wouldn’t affect India because of the black money in circulation. Later there was huge noise about uprooting black money and bringing it back from Swiss Banks etc, results of which are well-known. China announced Coronavirus epidemic in January, and WHO declared it a pandemic on March 11, which was endorsed by India on March 13.
On March 17, MoS (Finance) told Rajya Sabha that “latest available data on trade and indicators of domestic output don't suggest any adverse impact on the economy”. One didn’t need a fortune-teller to visualize the coming recession but was he confident due to black money in circulation or for opening flood-gates for more Chinese investment?
Amid India battling Coronavirus, the RBI Governor has been popping up on TV periodically about various measures. It would be good if he throws some light on intricacies of our economic system, for example recent capitulation of Yes Bank, where the Finance Minister finally emerged as Joan of Arc saving account holders.
How can a private bank loan thousands of crores to an individual or corporate? What is the monitoring by RBI? What about loan defaulters summoned by ED – can’t their assets be auctioned if they don’t pay up? Money from HDFC, LIC (taxpayer money) was pumped to save Yes Bank but last year HDFC lost around Rs 30,000 crore in shares. Are we moving from crisis to crisis – borrowing from Peter to pay Paul? Why is there no quarterly or six-monthly audit of NPAs?
The above doesn’t apply to Finance Ministry alone. After the Kingfisher collapse, how did we let Jet Airways go bust? Is the role of the Ministry of Civil Aviation limited to telling airlines not to refund tickets booked for flights during lockdown and finally see reason to order the refund?
Can we keep promoting a system where a 10-day old company is granted Rs 36,000 crore offsets while the same owner declares bankruptcy in his telecom company? And yes, since many useless laws have been repealed, might as well dump the anti-defection law because with all the loopholes it only helps raise sale price of lawmakers.
More by design than default or both, China has hit 210 countries with Coronavirus. This is exhibited by China’s guilty conscience with bloodied hands; going bonkers over the term China-Virus, blocking discussions at UNSC and banning research into origin of the virus. The US wants to get to the bottom of its origin but how when China has kicked out even foreign correspondents from Wuhan? China has now mounted an offensive boasting about its “Wolf Warrior” diplomacy, whereas, the diplomacy it actually follows is a cross between a Bat and a Skunk.
Cashing on the virus, China is buying low-priced assets world over and investing directly and through proxies. Chinese indirect investments in India would make a cumulative total far higher than $26 billion plus. Many economists, and politicians, bureaucrats and scholars influenced by Chinese political, economic and psychological warfare are thrilled with rising Chinese investments. The corporate wants to make the extra buck, nation be damned. But deeper analysis is warranted.
To think Chinese investments in India do not have the same strategic aim as CPEC or BRI is outright stupid. What about moral aspects amid political noises about China Occupied Kashmir that involves 43,180 sq km (Aksai Chin and Shaksgam). In addition are illegal Chinese claim to 90,000 sq km of Arunachal Pradesh, additional 1,702 sq km in Western Sector and 2,486 sq km in Central Sector.
CPEC violates Indian Territory. Next are collusive China-Pakistan anti-India activities, supporting Pakistani terrorism, ‘string of pearls’ and China blocking Indian entry to NSG and UNSC. Yet we are running to China just because it flashes money – where is our self-respect? Are we blind to fallout of Chinese investments in Europe, Australia and other parts of the world and protective measures Germany, France, Australia and Britain are taking against China?
The post-Coronavirus period may see China emerge stronger but the world needs to economically and politically ‘isolate’ China lest it turns a bigger rogue. The real virus is the Chinese regime and the CPC. Witness what Pakistan has become and China the bigger Frankenstein backing Pakistan all the way. Boosting China will be directly proportional to our strategic decline. For those saying China’s investment is not too large, have you seen leg of the prey in a python’s mouth? It would be better to shun Chinese capital, stand on own feet and not mortgage our sovereignty.
There is no need to be overawed by Chinese technology. There is enough talent in India and it is better we tie up with countries like Japan, South Korea and Taiwan. Europe, US, Japan and South Korea all want to move out their companies from China. We must work overtime to accommodate as many as possible in India, and not be content with climbing a few notches in ‘ease of business’ rankings. This will boost our economy and provide much wanted employment. Indian companies should similarly move back from China even if it implies temporary slowdown.
In January 2016, China Daily brazenly insulted India by saying Indians “don't understand nationalism, have no knowledge of morals, cravenly follow the west and are spoiled.” About time we stand up to safeguard our national interests, not sell our soul. India must kill the deep state and rise as a nation.
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