The government is about to approve 45 investment proposals of Chinese companies. These may include investment by Great Wall Motor and SAIC Motor Corp. This news was given by the news agency Reuters to government and industry sources. 150 billion investment proposals of two billion Chinese companies have been stuck with the government for a year. The government had started tightening last year on China’s investment due to tensions at the border. Increased scrutiny also hampered investment proposals of Japanese and American companies coming through Hong Kong.
45 companies can be allowed to invest first
Two government officials, who are aware of the approval list, said that the permission to invest 45 companies can be given first. According to him, most of the approved investment proposals will be for the manufacturing sector considered non-sensitive for national security. Industry and government sources said that companies like Great Wall and SAIC of the auto sector could also be named in this list.
Great Wall was to start selling cars from this year
Great Wall had offered to buy General Motors (GM) ‘s Indian plant for $ 25–30 million. China’s largest SUV manufacturing company plans to invest a billion dollars in India in the next few years. She had said that as part of its global strategy, she is doing business in India. Great Wall had a plan to start selling cars from here this year and was also thinking of launching battery-powered vehicles.
SAIC with MG Motor invested $ 400 million
As far as SAIC is concerned, it started selling cars in India under the British brand MG Motor in 2019. This Chinese state-run automotive design and manufacturing company has invested $ 400 million as part of a plan to invest $ 650 million. The company has a manufacturing plant in Gujarat with a capacity of 75 to 80 thousand annually. The company will need to get government permission to invest more in India.
Investment proposals are divided into three categories according to sensitivity
Sources said that more than 150 companies of China whose investment proposal is pending are divided into three categories. This classification has been made according to how sensitive it is to national security. According to consultants and lawyers, sectors like automobile, electronics, chemical and textiles are considered non-sensitive while companies related to data and finance are considered sensitive. A government source said that proposals for investment in non-sensitive areas would be approved quickly while proposals for investment in sensitive areas would be considered later.