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Chinese firm's India deal, hailed as example, serves as warning

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The highlight of Gujarat Chief Minister Narendra Modi's first engagement during his visit to China, which begins here on Wednesday, will be the showcasing of a landmark Rs. 2,500-crore investment by a Chinese company in his state for a green energy project.

The investment in Gujarat, by Chinese energy company TBEA, was confirmed last week when a memorandum of understanding was signed in New Delhi.

TBEA's deal was planned as the centrepiece of a business meeting at a Beijing five-star hotel on Wednesday morning to showcase “Business and Investment Opportunities” in Gujarat.

However, the massive project, first hailed as a landmark for Chinese investment in India, has in the past week attracted attention in China for all the wrong reasons, following a much-publicised spat between an Indian journalist and the Chinese Ambassador to India, Zhang Yan, at the MoU signing ceremony in New Delhi.

Mr. Zhang reportedly told the journalist to “shut up” after he was repeatedly questioned over maps included in TBEA's brochure, which showed parts of Jammu and Kashmir and Arunachal Pradesh as belonging to China. While Mr. Zhang had said the matter was a “technical issue”, the journalist continued with his questioning, prompting an angry response from the Ambassador.

The incident has received attention in the Chinese media, both in discussion forums online and in the State media. The coverage has largely portrayed the incident as another example of the Indian media's “negative” role in the bilateral relationship.

The Global Times, a newspaper run by the Communist Party, in a report appeared to blame the Indian media for the spat, echoing past editorials in which the nationalist newspaper has accused the Indian media for worsening tensions between the two countries.

Some bloggers in China's vibrant online community have, however, criticised Mr. Zhang's response — some said he was “not being diplomatic enough”, while others said his acknowledging a “technical issue” undermined China's territorial claims.

The agenda for Wednesday's event, which is being organised by the Embassy of India in Beijing and the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME), includes a presentation by a TBEA representative from Shenyang, in Liaoning province, on “Why TBEA has chosen Gujarat for their investment in India.” TBEA's presentation, officials said, was included in the agenda to encourage other Chinese companies to invest in India, and learn from its experience.

Representatives at both Chinese and Indian companies agree that TBEA's less than smooth entry into the Indian market has only underscored persisting gaps in understanding between both countries, whether at the level of government or enterprises, that need to be given more attention and addressed with more sensitivity, if political differences are to be better managed as engagement widens on other fronts, such as trade.

Executives at Indian companies in China, who are familiar with the domestic market, say TBEA's troubled entry will not deter other Chinese companies, who are increasingly turning to India as they look to invest overseas.

But why TBEA chose to include maps in a brochure for a green energy project, particularly in light of a sensitive and long-running border dispute, is a mystery, they say. An even bigger one is why the Chinese Embassy in New Delhi, presumably aware of Indian sensitivities, did not caution the company as it announced its arrival in India.

The Hindu : News / International : Chinese firm's India deal, hailed as example, serves as warning
 
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If Chinese companies wants to invest in India, they have to play by Indian rules.
 
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Investment is more than welcome. But Chinese companies can not carry their arrogance to India. They will have to be more sensitive to India's sensibilities and aspirations
 
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In future I will not be surprise if Chinese call to put down tension and let us have it in a commercial way? What is your price for the AP And Askai Chin real estate? On the flip side, congrats people of Gujrat.
 
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In future I will not be surprise if Chinese call to put down tension and let us have it in a commercial way? What is your price for the AP And Askai Chin real estate? On the flip side, congrats people of Gujrat.

Tension?China never thinks there are rooted conflict of interest between the two countries.China's core benefit lies on the East China Sea,lies on Taiwan.Average people,including me,in China foucus on making more money,on a better life.
 
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Tension?China never thinks there are rooted conflict of interest between the two countries.China's core benefit lies on the East China Sea,lies on Taiwan.Average people,including me,in China foucus on making more money,on a better life.

lol`unfortunatly some indians here think that China puts all her resources on India and Indian Ocean, as I have been in China for a week now havent heard anything serious about india from News, Internet or freinds chatting yet same when I was in London`
 
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Instead of depending on money, we should build a system in this world which focuses on equality. More money will lead to greed and more materialism. The system that China and India are now follow is 100% like the United States. It will not last forever.
 
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Instead of depending on money, we should build a system in this world which focuses on equality. More money will lead to greed and more materialism. The system that China and India are now follow is 100% like the United States. It will not last forever.

The U.S. teaches us that if we have power we have quality.

But if we want to have power,first we must improve our economy and enrich people's lives,which apply to any countries.
 
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Naraendra Modi is known puppet of big companies who funds his propaganda, Modi is killing mic, small and medium enterprises.


Narendra Modi China visit: Gujarat Inc nervous as Modi enters the dragon

AHMEDABAD: Chief minister Narendra Modi is often hailed as the CEO of Gujarat. Most of his moves have helped Gujarat Inc. But, his latest strategy to enter the dragon has ruffled feathers back home.

As Modi packs his bags for a five-day business-cum-political visit to China, there is growing unease among Gujarati entrepreneurs about the possible threat the dragon could pose to local manufacturing sector. :angry:

Modi plans to invite Chinese companies to set up shop in sectors like chemical, pharmaceuticals, electrical equipment and transformer manufacturing. Gujarat is already a manufacturing hub for many of these industries. The chief minister also plans to lure firms from the dragonland to set up ports and get into telecom equipment manufacturing.

"The Chinese thrive on subsidies and concessions. They will flood local markets with cheap goods. :hitwall:

This will make life difficult for local players," said a Gujarat business baron who adores Modi both for his politics and economics.
:angry::hitwall:

Modi's critics have often accused him of favouring large business houses at the cost of small and medium enterprises, considered to be the backbone of the state's economy.

"Doling out sops to Tata Motors for its small car project is understandable. It was a prestigious project which helped strengthen Brand Gujarat. But, inviting Chinese players at a time when local players are struggling is not advisable," said another entrepreneur, adding,

"Soaring interest rates and dropping demand has put pressure on our bottom lines. We can do without Chinese competition."

Modi's 20-member delegation will also meet top officials in the Chinese government as well as senior functionaries of the Communist Party of China in Beijing and Shanghai.

Already China's TBEA, a maker of high-voltage transformers, has signed a preliminary accord with the Gujarat government to set up a manufacturing facility in the state with an initial investment of Rs 2,500 crore in a phased manner. Also, Chinese telecom major Huawei has evinced interest to invest in Gujarat. Modi will visit the company's R&D centre.

Narendra Modi China visit: Gujarat Inc nervous as Modi enters the dragon - The Economic Times
 
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