Chinese top diplomat Wang Yi held a meeting with Indian External Affairs Minister Subrahmanyam Jaishankar on Friday, during which he urged India to establish a fair, transparent, and non-discriminatory business environment for Chinese companies. Wang, the director of the Office of the Central Commission for Foreign Affairs, expressed China’s concerns over India’s recent restrictions against Chinese firms during talks with Jaishankar on the sidelines of a series of ASEAN foreign ministers’ meetings, according to Xinhua News Agency.
Highlighting the significance of common development and prosperity between the two neighboring nations, Wang called for mutual support instead of suspicion. He emphasized that the normalization of India-China relations serves the common interests of both sides. In response, Jaishankar expressed India’s willingness to handle differences with an open mind and acknowledged that the normalization of relations between the two countries is beneficial for both parties.
In recent years, the Indian government has increased its scrutiny of Chinese companies, particularly in the smartphone sector. One notable instance occurred in June when the Indian government froze approximately 4.8 billion yuan ($672 million) of Xiaomi’s funds, citing alleged illegal transfer of funds overseas. Moreover, Indian media reports indicated that Chinese smartphone manufacturers such as Xiaomi, OPPO, and vivo are now required to position key executives, including the CEO, COO, CFO, and CTO, with local talent.
These actions by Indian authorities have raised concerns about the treatment of Chinese companies and have potentially undermined the confidence of foreign investors in the Indian market. Some foreign companies have even opted to exit the Indian market due to growing uncertainties about their future business prospects.
The meeting between Wang Yi and Subrahmanyam Jaishankar highlights the importance of establishing a conducive business environment that fosters cooperation and ensures fair treatment for Chinese companies operating in India. It also signifies ongoing efforts to improve bilateral relations and address differences between the two nations.