Will Chinese businesses in India face trouble due to recent violent provocation at Ladakh?
Reportedly the government is planning a series of tough economic measures against china after the recent provocation by the neighbouring country’s army in Ladakh’s Galwan River Valley region. Chinese businesses that operate in india or have bagged contracts for projects in the country may data-face trouble due to the recent violent provocation that started monday night.
While the government had earlier pacified citizens who called for a ban on Chinese goods, the death of 20 indian soldiers after the fresh confrontation may lead to a drastic change in stance.There could be a two-level economic retaliation, according to government sources who spoke to india Today tv on conditions of anonymity. The first plan involves direct action. Projects, where work orders have not been allotted after the financial bidding, will be scrutinised and Chinese stakes may be in trouble, according to sources.
Projects where the work allocation has already happened, however, can not be acted upon. The first economic blow could affect the successful financial bid by a Chinese company, shanghai Tunnel Engineering Co Limited (STEC), for the construction of an underground stretch of Delhi-Meerut RRTS (Regional Rapid Transit System) project. Top sources in the ministry of road transport and highways told india Today tv that the matter is being examined and “a decision that may hurt the Chinese company’s prospects could be taken”.STEC emerged as the lowest bidder for the construction of 5.6 km underground section between New ashok Nagar and Sahibabad, which is part of the Delhi-Meerut RRTS corridor, on june 12.