Indian businesses will now need to use a “national security filter” when dealing with China and should prioritize sourcing from domestic manufacturers, according to External Affairs Minister S Jaishankar. This directive comes amid the ongoing border tensions in eastern Ladakh.
Speaking at an event hosted by the Confederation of Indian Industry (CII), Jaishankar emphasized the importance of considering national security in business decisions involving China. However, he clarified that this does not imply a complete ban on Chinese imports.
“We encourage people in this country to manufacture in India, source in India, procure from India,” Jaishankar stated. “While we haven’t entirely prohibited working with China, we prefer that you collaborate with Indian companies when possible. This approach benefits our national security and, we hope, your long-term business interests.”
Jaishankar underscored the necessity of applying a “national security filter” in business transactions with China. He illustrated this with a metaphor: “Would you do business with someone who has just barged into your drawing room and is disrupting your house? You wouldn’t. It’s a matter of common sense.”
In his address, Jaishankar expressed concerns about the “weaponisation” of economic activities, noting that market dominance, financial control, and technological monitoring are being used for political leverage. He highlighted that exports, imports, access to raw materials, and even tourism stability have been manipulated to exert political pressure.
Jaishankar stressed that current circumstances demand more than business as usual, emphasizing the role of foreign policy in building trust and reliability between governments to mitigate risks in supply chains and enhance collaboration in critical technologies. He pointed to ongoing dialogues with the US and the EU as examples of this approach.
He also noted that India’s economic priorities must align with its strategic interests, acknowledging the need to access global resources to sustain growth. Jaishankar cited new economic opportunities arising from Russia’s eastward shift and the increasing trade and cooperation as significant developments not to be seen as temporary.
The minister’s remarks highlight a strategic shift in India’s approach to international business, reflecting a broader focus on aligning economic activities with national security and geopolitical considerations.
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