Hafizzz
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The topic is about $100 Billion and not a few billion or million.
China to invest $ 100 billion in India;Beijing University to teach Gujarati
- Thread starter Adnan Faruqi
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The topic is about $100 Billion and not a few billion or million.
Adnan Faruqi
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What attracts Chinese investments to India?
A survey conducted by UNCTAD and CCPIT concluded that eleven major factors have influenced Chinese overseas direct investment decisions in recent years. Given the recent spike in interest among Chinese companies in making investments in India, I thought it would be interesting to see which of these factors are relevant to India. I have also scored each factor on a scale of 1 to 10 for ease of comparison.
1. Favorable policies at home – Policy incentives offered to Chinese companies who invest abroad have been around for many years. In recent years, the Chinese and Indian governments have encouraged business ties between the two countries to help reduce the dependency of their respective industries on the Western markets. This has helped many Indian companies to make inroads into the Chinese market and vice versa. 6 out of 10.
2. Market potential in target countries – As highlighted in my previous post here this is probably the biggest motivating factor for Chinese investments in India. In many ways the Indian market is similar to the Chinese domestic market. Increasing income levels, rising consumption expenditure, etc. make it one of the most attractive markets for Chinese companies which take a long term view. 9 out of 10.
3. Availability of capital – This applies across the board for Chinese ODI. Perhaps the geographical proximity and relatively lower cost of investing in India should help when Chinese companies compare India to other growing markets. 2 out of 10.
4. Favorable policies in target countries – This one used to be a negative factor until 2008. Chinese participation in several segments of the Indian market such as power, telecom, etc. was frowned upon on the pretext of security concerns. Some of these concerns still remain at the political level but business players have largely conquered these fears and China today supplies a significant portion of power and telecom equipment being used in India. More importantly, Chinese participation in other sectors where such concerns never existed is being openly encouraged. Such sectors include construction, infrastructure, heavy machinery, etc. where India clearly requires Chinese expertise. 5 out of 10.
5. Circumventing trade barriers – Several anti-dumping investigations have been initiated against Chinese companies in India. This has prompted Chinese manufacturers to fast forward their plans for backward integration within the Indian market. 8 out of 10.
6. Increasing labor costs at home – Until a couple of years ago, most observers considered Chinese labour costs to be on par with Indian labour costs and hence only focused on the complexities caused by labour relations in India when comparing the two countries. This position has changed rapidly and labour costs in China now appear to have overtaken those in India (or will do so in the near future). Hence for a Chinese company which is targeting the price sensitive Indian market the use of cheaper labour in India might be attractive. This by itself might not be very helpful since other factors such as poor infrastructure might offset this advantage. 6 out of 10.
7. Lower transportation costs – Well, this simply might not hold true in India where poor logistics and transport infrastructure continue to be a challenge for most players seeking to tap the domestic market. (-2) out of 10.
8. Advanced technology in target countries – This might hold true to some extent but most Chinese companies continue to scout for technology heavy companies in the US or the EU. 3 out of 10.
9. Better quality of human capital in target countries – This is clearly a positive differentiator for India compared to most markets worldwide and especially in comparison to the Chinese market. India continues to churn out English speaking graduates in far greater numbers than China. Mid-level managers are also plentiful in India unlike in China. Within the next ten years this might change dramatically since Chinese students are now being taught English from a very young age and Chinese professionals are gaining more international managerial experience on account of China’s outward investments. 8 out of 10.
10. Acquiring brands – Rather than acquiring Indian brands Chinese manufacturers are focusing on improving the perception of their own brands in the minds of Indian consumers. Forming a joint venture with a Western brand to tap the Indian market as described in one of my previous posts here is another way of achieving the same result. This appears to be working since Chinese electronic products are gaining market share with each passing month. 3 out of 10.
11. Securing natural resources – As is true with many other markets around the world the chief motivation behind Chinese ODI is securing supplies of resources. Almost 50% of Chinese imports from India is iron ore although a recent ban on iron ore mining in certain parts of India has impacted this trade. China also imports copper in significant quantities from India. 9 out of 10.
What attracts Chinese investments to India? | Indiabourse
A survey conducted by UNCTAD and CCPIT concluded that eleven major factors have influenced Chinese overseas direct investment decisions in recent years. Given the recent spike in interest among Chinese companies in making investments in India, I thought it would be interesting to see which of these factors are relevant to India. I have also scored each factor on a scale of 1 to 10 for ease of comparison.
1. Favorable policies at home – Policy incentives offered to Chinese companies who invest abroad have been around for many years. In recent years, the Chinese and Indian governments have encouraged business ties between the two countries to help reduce the dependency of their respective industries on the Western markets. This has helped many Indian companies to make inroads into the Chinese market and vice versa. 6 out of 10.
2. Market potential in target countries – As highlighted in my previous post here this is probably the biggest motivating factor for Chinese investments in India. In many ways the Indian market is similar to the Chinese domestic market. Increasing income levels, rising consumption expenditure, etc. make it one of the most attractive markets for Chinese companies which take a long term view. 9 out of 10.
3. Availability of capital – This applies across the board for Chinese ODI. Perhaps the geographical proximity and relatively lower cost of investing in India should help when Chinese companies compare India to other growing markets. 2 out of 10.
4. Favorable policies in target countries – This one used to be a negative factor until 2008. Chinese participation in several segments of the Indian market such as power, telecom, etc. was frowned upon on the pretext of security concerns. Some of these concerns still remain at the political level but business players have largely conquered these fears and China today supplies a significant portion of power and telecom equipment being used in India. More importantly, Chinese participation in other sectors where such concerns never existed is being openly encouraged. Such sectors include construction, infrastructure, heavy machinery, etc. where India clearly requires Chinese expertise. 5 out of 10.
5. Circumventing trade barriers – Several anti-dumping investigations have been initiated against Chinese companies in India. This has prompted Chinese manufacturers to fast forward their plans for backward integration within the Indian market. 8 out of 10.
6. Increasing labor costs at home – Until a couple of years ago, most observers considered Chinese labour costs to be on par with Indian labour costs and hence only focused on the complexities caused by labour relations in India when comparing the two countries. This position has changed rapidly and labour costs in China now appear to have overtaken those in India (or will do so in the near future). Hence for a Chinese company which is targeting the price sensitive Indian market the use of cheaper labour in India might be attractive. This by itself might not be very helpful since other factors such as poor infrastructure might offset this advantage. 6 out of 10.
7. Lower transportation costs – Well, this simply might not hold true in India where poor logistics and transport infrastructure continue to be a challenge for most players seeking to tap the domestic market. (-2) out of 10.
8. Advanced technology in target countries – This might hold true to some extent but most Chinese companies continue to scout for technology heavy companies in the US or the EU. 3 out of 10.
9. Better quality of human capital in target countries – This is clearly a positive differentiator for India compared to most markets worldwide and especially in comparison to the Chinese market. India continues to churn out English speaking graduates in far greater numbers than China. Mid-level managers are also plentiful in India unlike in China. Within the next ten years this might change dramatically since Chinese students are now being taught English from a very young age and Chinese professionals are gaining more international managerial experience on account of China’s outward investments. 8 out of 10.
10. Acquiring brands – Rather than acquiring Indian brands Chinese manufacturers are focusing on improving the perception of their own brands in the minds of Indian consumers. Forming a joint venture with a Western brand to tap the Indian market as described in one of my previous posts here is another way of achieving the same result. This appears to be working since Chinese electronic products are gaining market share with each passing month. 3 out of 10.
11. Securing natural resources – As is true with many other markets around the world the chief motivation behind Chinese ODI is securing supplies of resources. Almost 50% of Chinese imports from India is iron ore although a recent ban on iron ore mining in certain parts of India has impacted this trade. China also imports copper in significant quantities from India. 9 out of 10.
What attracts Chinese investments to India? | Indiabourse
SpArK
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Adnan Faruqi
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Read the news again before farting its the investment chinese will do in next 5 years not in one go.
No where in the world one invest $ 100 billion in one project in one go........use ur brain.
Hafizzz
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Again a News article from an Indian Source !!!!
Find a News article from a Chinese source saying that they want to invest in India so badly.
SpArK
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KRAIT
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China is investing in Afghanistan...what's its rating....Read the report carefully，All is you Indians wet dreams
Chinese government never said China would invest 100b to India .
What you are expecting will never come true because China won't invest a BBB- country.
SpArK
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China is investing in Afghanistan...what's its rating....
(A+B)2 - (A-B)2 is its rating.
Hafizzz
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If you are that much buttthurtt.. find it by YOURSELF.
Ha ha ha.....are you admitting that India made up the story about China wanting to invest $100 billion in India since you can't find any sources other than the India media about the story ???
skyknight
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There are only two possible explanations of those cheering Indians’funny comments，
either they only read the silly title made by the poster， or they have a problem with comprehension。
SpArK
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nope im admitting that the viscosity of the pendulum doesnt reflect the kinetic energy of the land mass and osmosis of global economy is having a square root of the binary factors of corrosion and hence china and India has acts as forces of compression @ Mach2 in a suspended vacuum environment due to relativity of bi polar bear.
ChineseTiger1986
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I think the author did misunderstand the bilateral trade with the investment.
Yep, our bilateral trade will reach 100 billion with India in 2015, so with Iran and Pakistan.
Yep, our bilateral trade will reach 100 billion with India in 2015, so with Iran and Pakistan.
skyknight
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These are part of normal trade，as a return for China's large trade surplus with India。
BTW，Would you please provide me a credible source that China will invest 100B to India。
ChinaToday
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I think the author did misunderstand the bilateral trade with the investment.
Yep, our bilateral trade will reach 100 billion with India in 2015, so with Iran and Pakistan.
Bilateral trade reaching $100 billion only if they can bounce back of the mess they are in now
These are part of normal trade，as a return for China's large trade surplus with India。
BTW，Would you please provide me a credible source that China will invest 100B to India。
Dont bother mate they knew is it not true but they just wont admit it
Android
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that means only after 2014
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