After the strategic digital pushback against Chinese investments and apps, India should turn its attention to the biggest Chinese domination tool – 5G. This is the mother lode that enables the efficient gathering of data, which when mined, results in product enhancement and pricing benefits to products listed in China 2025 and helps China set global standards. There is an urgency for alternate suppliers of 5G equipment and other technologies to avoid relying on China.
Amit Bhandari, Energy & Environment Fellow, Gateway House; Blaise Fernandes, President, Indian Music Industry Association; Ambika Khanna, Senior Researcher, International Law Programme, Gateway House discuss the reaction to China’s increased investment in HDFC, the depth and motive for China's investments in India, and the new FDI rules put in place by the government to protect strategic investments in the country.
Over the last five years, China has quietly created a significant place for itself in India – in the technology domain. While India has refused to sign on to China's Belt and Road Initiative (BRI), this report shows India's positioning in the virtual BRI to be strategically invaluable for China. Nearly $4 billion in venture investments in start-ups, the online ecosystem and apps have been made by Chinese entities. This is just the beginning; there is more to come.
In India, China’s tech giant companies and venture capital funds have become the primary vehicle for investments in the country – largely in tech start-ups. This is different from other emerging markets where Chinese investments are mostly in physical infrastructure. Chinese FDI into India is small at $6.2 billion, but its impact is already outsized, given the increasing penetration of tech in India