India imported goods worth more than $ 70 billion from China in 2019.
India has imposed new trade restrictions on some of its neighbors, in a move aimed primarily at preventing Chinese companies from entering after a border dispute and deepening economic ties between the two countries.
Companies from countries that share a land border with India cannot bid on government procurement of goods and services until they register with the Department of Industry, according to an official statement. Previously, New Delhi had required suppliers to mention the country of origin on the government’s e-Marketplace during tenders.
The move is the latest in a series of moves by Prime Minister Narendra Modi’s government to divert India from its dependence on China – New Delhi’s largest source of imports. Previously, the administration had banned the use of 59 Chinese apps, while goods purchased in China were delayed at Indian ports after a deadly conflict between neighbors along a disputed Himalayan border left several dead among soldiers on both sides.
India’s decision to shut down key areas of the Chinese presence indicates that the South Asian nation is prepared to bear the short-term costs to reduce exposure to critical areas, Professor Harsh Pant said. of international relations at King’s College London. “Such measures are a calculated response to shape the Chinese calculation on the border problem which is becoming serious day by day in the absence of any commitment from the Chinese to resolve it amicably.”
The development comes at a time when the two countries are engaged in talks to defuse a border deadlock. India said Thursday that it expects the Chinese side to be sincere in completing the disengagement of troops along the line of effective control.
A spokesperson for the Ministry of Foreign Affairs did not immediately respond to a text message indicating whether the recent restrictions were aimed at China when a spokesperson for the Prime Minister’s office was not immediately reachable by phone during working hours. office.
Other key points of the last movement:
- Standards have been relaxed in some cases, including the purchase of medical supplies to contain Covid-19, until December 31.
- New rules applicable to all new offers; in cases where bids have already been invited, if the initial stage of eligibility assessment has not been completed, unregistered bidders will not be qualified
- Contractors will not even be allowed to subcontract with unregistered entities from countries sharing a land border with India
- Offers will be canceled if the first step of the evaluation is completed
- New standards to be applied to public banks and financial institutions, public enterprises and public-private partnership projects receiving financial support from the government
- State governments will also have to comply with the new standards, they can designate the competent authority; political and security authorization is required
The step of further tightening the rules of the bidding process has been taken as disengagement and de-escalation of borders does not move in a positive direction, Pant said. “Tensions with China are already high with a growing consensus in India that the Chinese Communist Party does not appear in the mood to diplomatically resolve the border crisis.”
India imported over $ 70 billion worth of goods from China in 2019, while the bilateral trade deficit stood at around $ 50 billion, much higher than with any other trading partner.
(Except for the title, this story was not edited by GalacticGaming staff and is posted from a syndicated feed.)
