Chinese visa dip after Galwan clash as economic security takes centre stage
- In Reports
- 11:18 AM, Jun 21, 2024
- Myind Staff
The number of visas granted to Chinese nationals by India has significantly decreased since the border clash between the Indian Army and the People's Liberation Army (PLA) at Galwan four years ago. According to senior officials and data obtained by HT, the Narendra Modi government has been placing a strong emphasis on national economic security.
Twenty Indian soldiers, including Colonel Santosh Babu, lost their lives at Galwan while attempting to repel an incursion by the PLA into Indian territory in East Ladakh. An unspecified number of Chinese soldiers were also killed in the skirmish.
HT has learnt from senior officials in the national security establishment and economic ministries that around 200,000 visas were issued to Chinese nationals in 2019, before the pandemic and the June 15, 2020 Galwan clash. This number was reduced to just 2,000 in 2024 following a structural screening of Chinese investments in India.
However, in the past eight months, the government has issued about 1,500 visas to Chinese nationals – of which around 1,000 visas have been to facilitate Indian electronics industry demands. Another 1,000 such visas are in the pipeline, most of them again for the electronics industry based on intensive screening
The trade deficit with China surpassed $38.11 billion in the first five months of this year. India exported only $8.93 billion worth of goods to China between January and May 2024, while importing $47 billion from Beijing. This occurred despite the government reducing corporate income tax and launching a ₹2 lakh crore production-linked incentive (PLI) scheme in a dozen sectors to boost production.
While the Indian electronic industry claims job losses due to the denial of visas to Chinese businessmen and workers, official data released on June 14 showed that India’s merchandise exports in May 2024 increased by over 9% annually, driven by petroleum products, engineering goods, and electronics. India exported electronic goods worth $29.12 billion in FY 2024, up from $23.55 billion in FY 2023, largely due to the PLI scheme.
According to five top officials, the structural screening of Chinese investments post-Galwan revealed that Chinese telecommunications companies such as Vivo were violating Indian laws and were even charged by the Enforcement Directorate for laundering funds to China to evade Indian taxes. The ED has accused Vivo of siphoning about $13 billion back to China, in addition to violations of visa conditions by its executives and workers.
"We are deeply alarmed by the current action of the authorities. The recent arrests demonstrate continued harassment and as such include an environment of uncertainty amongst the wider industry landscape. We are resolute in using all legal avenues to address and challenge these accusations," Vivo said in a statement after the ED action.
While Indian industry clamours for more visas for Chinese workers and technicians, the national security establishment, including the economic ministries, is firm that visas will only be issued after thorough vetting. They believe that unchecked issuance of visas would undermine India’s "Atmanirbhar Bharat" initiative and negatively impact domestic manufacturing.
India-China bilateral relations have been in a deep freeze since the PLA transgressions in May 2020, with Beijing continuing to create obstacles for the Indian Army patrolling its own side of the Line of Actual Control in Ladakh. Despite multiple rounds of military and diplomatic talks, the PLA has yet to de-escalate from the LAC and restore the status quo ante in East Ladakh. Four years after Galwan, the Chinese military remains deployed in full strength in East Ladakh, with Chinese reserves backing them from the hinterland.
The situation in the Indian Ocean Region mirrors the tension, with Chinese surveillance ships deployed year-round. On Thursday, the Chinese ballistic missile tracker Yuan Wang 7 was positioned 1,000 kilometers south of Kanyakumari, and the PLA Navy’s anti-piracy forces were stationed in Djibouti, the Gulf of Aden, and the Madagascar Channel.
One official said that with the Xi Jinping regime continuing to put pressure on India on land and sea, the Modi government had no option but to take steps to ensure the economy is less dependent on China. “India’s national economic security cannot be compromised for a few pieces of silver…. Visas will be issued for Chinese technicians and businessmen only after screening with assurance that travel conditions will not be violated,” said a Cabinet minister who asked not to be named.
Image source: Hindustan Times
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