Indian national security planners have discovered multiple irregularities in the operations of Chinese companies and the import of Chinese products into the country. These issues include improper visa documentation, evasion of local taxes, and bypassing scrutiny by the Ministry of Home Affairs (MHA). The findings were shared by individuals familiar with the situation.
Indian intelligence and financial investigation agencies have reported widespread misuse of the e-visa scheme by Chinese nationals before 2020. Some of these individuals not only overstayed their visas but also traveled to sensitive border areas like Arunachal Pradesh and Jammu & Kashmir without the necessary visa renewals.
Officials from three different ministries, speaking anonymously, revealed that the current visa system is being exploited by Chinese companies. For example, some firms have been applying for business visas to set up industrial units, even though they should be applying for employment visas for this purpose.
Another major concern is the import of billions of dollars worth of Chinese furniture, lighting, fixtures, and sanitaryware, which impacts local industries. Similar to how Chinese telecom companies previously flooded the Indian market, some Chinese firms are now claiming “Make in India” benefits to establish manufacturing units in India. However, they are sourcing up to 80% of the parts for these units from China.
These issues are not new; they even involve some Chinese firms that have been operating in India for about two decades. Officials have chosen not to name these companies until formal complaints are registered and actions are initiated.
Quality concerns also exist regarding Chinese products. Despite being cheaper, many Chinese products are of inferior quality compared to Indian ones. In response, the Union Commerce Ministry started issuing Quality Control Orders (QCOs) to set standards for imports after the Galwan clash in June 2020 during the Modi government’s tenure.
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In 2018, India issued 47,000 business visas to Chinese companies and 150,000 e-visas. By 2019, business visas dropped to 19,000, but e-visas increased to 200,000. After the COVID-19 pandemic, the government tightened visa issuance, granting only 2,500 business visas and 3,000 e-visas to Chinese nationals in 2023-24.
Officials indicated that visa numbers are unlikely to rise until these issues are resolved, along with the ongoing boundary dispute in East Ladakh that began after the 2017 Doklam incident.
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