Coronavirus: China threatens to block medical supplies to India after new FDI restrictions

The change in FDI investment rules in India has angered neighboring China. Taking big advantage of the Corona crisis, India has decided to change its FDI rules to prevent neighboring countries, especially China, from investing in weak Indian companies.

China objected to India's change in rules. China says India's decision is against WTO principles.

According to the new FDI rules, citizens or companies from any country bordering India will now have to seek government approval before investing. So far only citizens and companies from Pakistan and Bangladesh needed approval.

After the change in FDI rules, a spokesperson of the Chinese embassy in New Delhi said, "We hope that India will change its discriminatory policy and make a uniform rule for different countries to invest." Also India is free, transparent and competitive.

Meanwhile, the Global Times newspaper, known as the mouthpiece of the Chinese government, has written an article in which it has tried to intimidate India. Thanks to Chinese staff, the country now has medical supplies for itself and the world, writes Global Times.

However, the Government of India has ignored this fact and given the reason for the Corona Crisis to tighten the rules on foreign investment. India is largely dependent on China for medical supplies, and its efforts to curb the alleged opportunistic acquisitions of Indian companies.

According to Pharmacil statistics, India buys most of its raw materials for its medicines from China. Indian companies have already expressed fears that the impact on China's supply of raw materials could have a serious impact on India's production.

India fears that China will take over Indian companies and take over some Indian territories by taking advantage of the corona virus crisis, but this fear is completely unfounded, according to a Global Times report.

This step of the Government of India was optional as the earlier policies were only able to save the Indian company from acquisition. Analysts say such restrictions on Chinese investment would be detrimental to India's manufacturing sector. Soon this new policy will hit India hard.

Even after this decision, other doors will open for India, Japanese and South Korean companies are likely to have the opportunity to bring their business to India, but the manufacturing sector in India cannot be filled by anyone else, the Global Times reported.

The newspaper wrote that India is likely to become the next manufacturing hub but the current economic crisis has disrupted the supply chain. India will take a long time to achieve its goal of becoming a manufacturing hub. In such a scenario, India should increase cooperation with China.

The Global Times also writes that India's closed doors could open up other opportunities for Chinese companies. Many Chinese companies want to expand abroad after the end of the epidemic and for that they can turn to Southeast Asian countries. If India for Chinese companies.