China slams India's new FDI norms, says change violates WTO non-discrimination principle

China said on Monday the additional barriers set by India for investors from specific countries violate World Trade Organisation's principle of non-discrimination, and go against the general trend of liberalisation and facilitation of trade and investment.

"More importantly, they do not conform to the consensus of G20 leaders and trade ministers to realise a free, fair, non-discriminatory, transparent, predictable and stable trade and investment environment, and to keep our markets open," said a statement issued by the Chinese Embassy here.

Companies make choices based on market principles. "We hope India will revise relevant discriminatory practices, treat investments from different countries equally, and foster an open, fair and equitable business environment," said the statement by the Spokesperson of the Chinese Embassy in India, Counselor Ji Rong.

On April 18, the Department for Promotion of Industry and Internal Trade (DPIIT) had revised its foreign investment policy, making it much difficult for companies from countries sharing a land border with India, including China, to invest in the country.

As of December 2019, China's cumulative investment in India has exceeded eight billion dollars, far more than the total investments of India's other border-sharing countries. "The impact of the policy on Chinese investors is clear." The statement said Chinese investment has driven the development of India's industries like mobile phones, household electrical appliances, infrastructure and automobile besides creating a large number of jobs in India and promoting mutually beneficial and win-win cooperation.

"Chinese enterprises actively made donations to help India fight COVID-19 epidemic," it said adding that where companies choose to invest and operate depends on the country's economic fundamentals and business environment.

"Facing the economic downturn caused by COVID-19, countries should work together to create a favourable investment environment to speed up the resumption of companies' production and operation."

(To view our epaper please click here. For all the latest News, Mumbai, Entertainment, Cricket, Business and Featured News updates, visit Free Press Journal. Also, follow us on Twitter and Instagram and do like our Facebook page for continuous updates on the go)

Free Press Journal

www.freepressjournal.in