Hopefully US ‘political virus’ won’t infect India

By Qian Feng Source:Global Times Published: 2020/5/25 14:40:07

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India has reportedly drafted a bill that would enforce tighter scrutiny toward new foreign portfolio investors (FPIs) from China. If passed, it would be another discriminatory practice aimed at Chinese investments following the previous foreign direct investment (FDI) restrictions.

India's pointless concerns over Chinese investments stem partly from their country's economic inadequacy amid the COVID-19 pandemic and from the longstanding political hostility against China.

India's FDI restrictions have had a significant impact on investments by Chinese firms in the South Asian country, and could deal a heavier blow to its economy during the pandemic.

India's discriminatory moves against Chinese investments will wipe out the progress it has made while opening up and sabotage progress.

India's domestic discussions on investment restrictions have supposedly highlighted the moves are false. Indian opposition voices believe that such moves are not conducive for the country to use investments from China, which kept the outbreak under control in the shortest possible time, and has increased economic recovery.

Hopefully India will stop moving in the wrong direction, which is damaging bilateral cooperation according to the agreements that have been reached by leaders from both sides. If the country's recent investment restrictions are only temporary measures during the pandemic, they could send more positive signals to restore economic cooperation.

A lack of positive signals coupled with India's recent moves that have caused new tension at the China-India border, relations between the two countries seem to be entering a new stage as the international situation becomes more complicated due to the raging COVID-19 pandemic. There is still a long way before bilateral ties can move to the next level.

A "political virus" against China is spreading in the US, and it is hoped that India will not become similarly infected. As the third-largest economy in Asia, India should work together with China in the fight against COVID-19. Efforts will require upgrades in bilateral cooperation and support for the global economy, as is standard for any responsible country.

The author is director of the research department at the National Strategy Institute at Tsinghua University in Beijing. bizopinion@globaltimes.com.cn


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