No change in Chinese FDI policy post disengagement at border: Centre

New Delhi: Discarding media reports that stated that India has given the green signal to Chinese companies to invest in in the country, the Centre has clarified that there is no change in the Foreign Direct Investment (FDI) policy from China post disengagement and easing of tension between the two Asian giants.

Commerce Ministry sources told news agency ANI that there is no change or easing in FDIs from China as of now and nor it is planned in near future. All investments from China have to follow the procedures and government clearance route, nod will only be given to those investments that bear no implications on Indian security interests. Any Chinese company that potentially impinges on India’s security will not be cleared.

However, the government sources say that three proposals, which are recently cleared are based in Hong Kong and one is a Japanese origin company; they are all security cleared.

According to Commerce Ministry sources, one company that has got the go-ahead is Nippon Paint Holdings Co. Ltd, Japan (Nippon Japan). Nippon Japan is listed on the Tokyo Stock Exchange. Another FDI proposal, which is cleared is of Citizen Watches (India) Private Limited (Citizen Watches (HK) Ltd, Hong Kong (Citizen Watches Hong Kong) which is 100 per cent held by Citizen Watches Company Limited, Japan (a company listed on the Tokyo Stock Exchange).

India and China are rapidly disengaging in the Ladakh sector after almost nine months of stand-off, which also culminated in a violent clash in June, resulting in the loss of lives on both sides.

China’s military climb down in the North and South bank of Pangong Lake in the Eastern Ladakh began a week back. The disengagement at the Pangong lake took place after the ninth round of Corps Commander level talks between the two nations held in January-end. Troops from both sides began disengaging from the Pangong lake area on February 16.