For Chinese companies, India needs to adopt this strategy like America, it is not right to ban every Chinese company.
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Both countries can benefit from technology and investment in sectors where Chinese companies are at the forefront. But the problem is that China poses a security threat. It needs to be resolved. America’s National Security Advisor Jake Sullivan and Treasury Secretary Janet Yellen have found a solution to this problem. This is ‘high fence, small yard’ ie more strict surveillance in small areas. India, like the US, should adopt a similar approach.
This strategy says that first decide which are the areas where there is a need for close monitoring. After this put high fence in these areas. This means that a strict investigation should be done before announcing or giving approval to direct restrictions in these areas. But it is not right to ban too many Chinese products or companies in this way.
progressive economy
China is now a very progressive economy. Chinese companies and technology are the best in many sectors. Janet Yellen has repeatedly stressed that it would be a big mistake to exclude China in all these sectors. China is one of America’s largest trading partners. Bilateral trade is growing despite the sanctions imposed during Donald Trump. If large-scale trade embargoes were imposed, American customers would be deprived of cheap consumer products. It will affect the poor people the most. It would also deprive the US of the things it needs to fight climate change – solar modules and panels, the most advanced batteries, affordable electric vehicles and the best 5G telecom equipment.
This step was taken in view of security
Here, both India and America have banned Chinese 5G in view of security threat. However, Janet Yellen says that a widespread separation from China would mean that many US products would not be able to access the large Chinese market. America will again lose the opportunity to export. It would be terrible for both countries. The solution is to make trade and investment risk free, not to turn away. For this it is necessary ‘high fence, small yard’. America will prevent its companies from selling the most advanced machines and technology to China. Fear of espionage will keep Chinese 5G technology out. Meanwhile, the US will provide billions of dollars in subsidies to advance in areas where China has overtaken.
need for close monitoring
There are many similarities in India’s policy, but there is no such thing as ‘high fence, small yard’. China’s ingenuity sometimes suggests that much tighter surveillance is needed over a large area. I have already written about the proposal of BYD, the world’s largest electric vehicle company. BYD now has more sales than Tesla. Tesla only makes luxury cars, while BYD’s portfolio includes expensive as well as affordable cars. In the past, this Chinese company had proposed to invest billions of dollars in India. In India, the company is already doing auto production on a small scale. The company now wants to scale it up and build a bigger battery facility. But according to media reports, the Government of India has canceled this proposal of BYD.
Similarly, Luxshare, another Chinese company, makes Apple’s Air-pods and smartwatches. It has been appointed as the exclusive partner for Apple’s Pro-Vision headset. According to a US report, LuxShare was chosen because of its innovation and openness to ‘crazy ideas’. India needs a company like this. This will open up new areas.
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dominance of Chinese companies
In India, the Apple company is producing and exporting iPhones worth billions of dollars. But the value added because of this is very less. To improve this, India needs production of components on a large scale. The government gives priority to Indian companies for this. But, this sector is dominated by Chinese companies. In such a situation, it is a fantasy to expect that Indian names will somehow make up for this shortcoming.
The rapid expansion of renewable energy in India is a good step. By all means, those Indian companies should be given a chance, who have tied up with a good technology supplier. But, give permission to Chinese companies as well. Storage batteries strengthen national security, they are not at risk.
Click here to read the original article by Swaminathan S Anklesaria Iyer in English
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