Agencies discover serious irregularities in Chinese companies' operations
- In Reports
- 12:11 PM, Jun 22, 2024
- Myind Staff
National security planners have identified several irregularities in the operations of Chinese companies and the importation of Chinese products into India, according to informed sources. These irregularities include improper visa documentation, evasion of local taxes, and bypassing scrutiny by the Ministry of Home Affairs (MHA).
Indian intelligence and financial investigation agencies have also discovered extensive misuse of the e-visa scheme before 2020. Some Chinese nationals overstayed in India without the required visa renewals and travelled to border states and Union Territories such as Arunachal Pradesh and Jammu & Kashmir, the sources added.
Officials from three ministries involved in the matter, speaking on condition of anonymity, reported that the current visa regime was being exploited by some Chinese companies through the mis-declaration of visa categories. For example, some Chinese firms were applying for business visas to cover the installation and commissioning of industrial units, although the correct category for this purpose is an employment visa.
Officials have expressed concern about the annual importation of billions of dollars worth of furniture, lighting, fixtures, and sanitaryware from China and its impact on the local industry. This mirrors the situation when Chinese telecom companies flooded the Indian market, disadvantaging domestic phone manufacturers. A pattern observed is that some Chinese firms claim "Make in India" benefits to establish units in India, only to import or source up to 80% of the parts for these units from China.
This problem, the officials said, even extends to some Chinese firms that have been operating in the country for roughly two decades. The officials asked that the firms not be named until formal complaints are registered against them and action is initiated.
There have also been concerns regarding the quality of Chinese products, which are often cheaper than Indian products but of inferior quality. During the Modi government, the Union Commerce Ministry began issuing Quality Control Orders (QCOs) following the Galwan clash in June 2020 to set benchmarks and implement standards.
In 2018, 47,000 business visas were issued to Chinese companies, while the number of e-visas was 150,000. In 2019, the number of business visas issued to Chinese nationals was about 19,000, but the number of e-visas increased to 200,000. Following the COVID-19 pandemic, the Union government significantly reduced the issuance of visas, granting only 2,500 business visas and 3,000 e-visas to Chinese companies and workers in 2023-24.
Officials stated that the numbers are unlikely to increase until several of the aforementioned issues are addressed, and the boundary issue in East Ladakh, which arose after the 2017 Doklam incident, is resolved.
Image source: Hindustan Times
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