[ad_1]
NEW DELHI: A day after China’s outbreak of the change in foreign direct investment policy, India responded to its neighbor on Tuesday, saying the amendment did not violate any global commitment, as it did not prevent investments across the border. , but only ordered a prior inspection. of proposals.
In addition, sources pointed to a large number of Chinese policies to argue that Beijing had a checkered history of following “discriminatory” policies against foreign entities.
Last week, the government modified FDI policy to order that all investment proposals from countries that shared a border with India would have to be approved by the government rather than being on the automatic route, a tool that allowed entities simply inform the Reserve Bank of India after funds have entered the country. Previously, this policy was intended only for investments from Bangladesh and Pakistan and the latest move was seen to be directed at China, prompting it to complain that India had violated its commitment under the WTO agreements.
However, government officials said there was no concern, as the measure would not affect trade in goods and the latest press release was not included in the Illustrative List of Trade-Related Investment Measures (TRIMS), which also it is part of the WTO commitment.
Similarly, under the WTO services agreement, the latter measure does not automatically create a capital limit or impose restrictions, but only requires compliance with a different procedure.
Authorities said India has not violated Bilateral Investment Treaties (BITs) with China or Nepal, which have been terminated. “The provisions only apply to investments already made in India prior to the termination of the treaty. Therefore, no retrospective steps have been taken to deny existing investments and there is no violation of the respective BITs. The same measure was there for Pakistan and Bangladesh for a long time and without any challenge, “said an official.
In contrast, officials said China had adopted policies that restricted access for foreign investors in sectors such as financial services, telecommunications and media. Indian IT companies have long complained about market access restrictions, paralyzing their growth through non-tariff barriers.
Last December, China also ordered state offices to remove foreign hardware and software within three years, even when Twitter and Facebook are blocked.
[ad_2]
In addition, sources pointed to a large number of Chinese policies to argue that Beijing had a checkered history of following “discriminatory” policies against foreign entities.
Last week, the government modified FDI policy to order that all investment proposals from countries that shared a border with India would have to be approved by the government rather than being on the automatic route, a tool that allowed entities simply inform the Reserve Bank of India after funds have entered the country. Previously, this policy was intended only for investments from Bangladesh and Pakistan and the latest move was seen to be directed at China, prompting it to complain that India had violated its commitment under the WTO agreements.
However, government officials said there was no concern, as the measure would not affect trade in goods and the latest press release was not included in the Illustrative List of Trade-Related Investment Measures (TRIMS), which also it is part of the WTO commitment.
Similarly, under the WTO services agreement, the latter measure does not automatically create a capital limit or impose restrictions, but only requires compliance with a different procedure.
Authorities said India has not violated Bilateral Investment Treaties (BITs) with China or Nepal, which have been terminated. “The provisions only apply to investments already made in India prior to the termination of the treaty. Therefore, no retrospective steps have been taken to deny existing investments and there is no violation of the respective BITs. The same measure was there for Pakistan and Bangladesh for a long time and without any challenge, “said an official.
In contrast, officials said China had adopted policies that restricted access for foreign investors in sectors such as financial services, telecommunications and media. Indian IT companies have long complained about market access restrictions, paralyzing their growth through non-tariff barriers.
Last December, China also ordered state offices to remove foreign hardware and software within three years, even when Twitter and Facebook are blocked.
