China offers to finance 30 per cent of India’s infrastructure development plan

[Edison Chen]

It is not the return on investment that is sole reason here. I think the Chinese objective here is to keep its manufacturing industry healthy and in turn generate jobs for Chinese and grow its economy by healthy rate of over 8% for some more years. With investment opportunities dried up in China and with lot of cash, China is looking at good investment opportunities across the world that would keep its own industries running and in turn boosting its own economy . With investment China would also bring its machinery and products into India that would in turn boost its manufacturing industry. That is reason why China wants to invest in manufacturing intensive industries such as railways and telecom in India. But India;s fears are not only of security but also that these investments would lead to further trade imbalance

Indeed, your analysis is reasonable, trade imbalance is another important factor I forgot. I can tell you why China so massively invest oversea, it's because of our excess production capacity, our domestic market for infrastructure is getting close to a steady growth stage from the previous fast expanding stage, investment is needed in China because of the accelerating rate of urbanization, but not too much as before. We need to digest the excessive raw materials, upgrade and adjust investment layout. So it's your choice now, you want something, you need to give out something for return.

 

[Star Wars]

For the same reason we are now investing hundreds of billions overseas.

Because we need a place to invest. China's domestic market is saturated, and we are trying to move away from an investment-fueled economic model.

The result is we need to invest overseas. But that is difficult.

Even for buying US treasuries, or Euro bonds, the Chinese government has to "disguise" many of its purchases to avoid people being panicked by how much we are buying.

Our surpluses keep building up, and we need some place to put them.

The Big Reset: Why China Bought JPMorgan's Gold Vault | SilverDoctors.com

lol

 

[Contrarian]

We do not allow China in our backyard
Chinese stuff are cheap
Chinese bring workers from their country, so it's useless.... bla bla bla

We keep tabs on this sort of benaviour by foreign companies in India.

Not allowing China in the backyard relates to non commercial/military aspects, not commercial investments.I am starting to doubt your intelligence.

Indian has no reason to refuse, I mean China investors are expecting a substantial rate of return from the investment and Indian also benefits a lot. The reason why India's industrial output is behind China is that the infrastructure is not be able to fully guarantee the long-term operations of business. For companies, a quicker operating cycle by delivering goods to customers in much faster and cheaper way will help this company collecting cash back effectively. And more railways will help this. Indian should welcome China's investment.

Indeed. India should welcome China's investment as it should investment from any country.
The current policy of barring Chinese investments is absolutely wrong in my opinion.

Some sectors which are strategic can be reserved, but not like the current policy wherein almost every major sector is barred to Chinese investment.

 

[Chinese-Dragon]

Some sectors which are strategic can be reserved, but not like the current policy wherein almost every major sector is barred to Chinese investment.

We do the same thing when we accept foreign FDI.

In fact, many foreign (especially American) companies are crying about our harsh/unfair treatment towards foreign companies, but our FDI is still soaring to record levels.

They cry on one hand, and pour in money with the other hand.

 

[Contrarian]

We do the same thing when we accept foreign FDI.

In fact, many foreign (especially American) companies are crying about our harsh/unfair treatment towards foreign companies, but our FDI is still soaring to record levels.

They cry on one hand, and pour in money with the other hand.

We do the exact same thing with other countries as well.

The only thing is that investment from 3 countries is almost barred in India in every major sector by law- China, Pakistan and Bangladesh.

I think it is more than high time that the restrictions on Chinese investment is removed and brought to the same level as that of all other countries.

 

[Rajaraja Chola]

There are certain norms that act as a covenants such as only until a % of machinery should be manufactured in host country. I will be surprised if China manufactures everything in India and would only look at India as opportunity to get investment returns. By doing as you suggest China would loose an opportunity to boost its own economy.

If chinese market saturates, and cost of production increases, it naturally would have to move to India. Japan was cheaper , all companies moved there, later as Japan developed and became a Manufacturing Giant,it saturated and many companies moved to China, and now its the turn of India. As country develops, market saturates, and they look for investments and return.

 

[HariPrasad]

China is the way to go for Indians. Bow before the dragon and the prosperity will be in the horizon.

BD model is not acceptable to us. We are here to get other people bow down to us than other way round.

 

[Contrarian]

If chinese market saturates, and cost of production increases, it naturally would have to move to India. Japan was cheaper , all companies moved there, later as Japan developed, many companies moved to China, and now its the turn of India. As country develops, market saturates, and they look for investments and return.

And unless we fix our creaking infrastructure, those production factories will move to Vietnam, Indonesia, etc.

If we fix our infra, we would be the country of first choice...and to do that we should not just accept, but welcome investments from every country on the planet( bar Pakistan and Bangladesh).

As for this investment, I am firmly in favour of removing any additional restrictions on Chinese investment in India that we donot put on other countries.

An equal playing field for all.

 

[Edison Chen]

See? Here is the most essential difference between China and USA. We are upgrading our industries structure by outsourcing excessive production capacity, it's good for ourselves and especially for other countries who need it. Whereas the US is just injecting inflation by planing endless QE1, QE2, QE3, QE4......QEX to the rest of world, unless US domestic market rebounds, the unemployment rate decreases and government debt declines. It's so selfish.

Indeed, QE helps emerging market somehow, but the sudden quit of QE do more harm to Asian developing countries. USA doesn't care about others, only to accomplish its own goal.

 

[Roybot]

There is no harm in opening up sectors like ports, railways and highways.

 

[Chinese-Dragon]

There is no harm in opening up sectors like ports, railways and highways.

Yep. No one is asking India to give up their sensitive sectors to us anyway. I don't think anyone in the Indian government is that stupid in any case, with the possible exception of Rahul.

We want returns on our money, we don't want it rotting in US treasury bonds. India wants investment, this is pure business based on mutual gains.

 

[illusion8]

Modi may go for it.

 

[SarthakGanguly]

I don't know if non sensitive contracts are not given to Chinese contractors. If it is a deliberate policy it is extremely retarded.

Modi may go for it.

Modi is pretty pro China. So yes, he will encourage it. He is also smart - I am open to investment even from Pakistan if it suits our interest.

 

[illusion8]

I don't know if non sensitive contracts are not given to Chinese contractors. If it is a deliberate policy it is extremely retarded.


Modi is pretty pro China. So yes, he will encourage it. He is also smart - I am open to investment even from Pakistan if it suits our interest.

He intends to build a hi tech city near Ahmadabad, he might involve the Chinese there.

 

[liall]

TAKE IT TAKE IT TAKE IT.