India vs China: Rs 5,000 crore deal with three Chinese firms put on hold by the Maharashtra state government
The Galwan valley face-off between India and China is now the center point for Indians. People have voiced their approval for boycotting Chinese goods and services. In fact, many want the Indian Prime Minister to announce a blanket ban on Chinese products and services. But as India is a signatory to WTO and many other pacts, such a blanket stand is not possible. However, that doesn’t mean that state governments can’t use their powers to ban Chinese products.
In view of the rising anti-China sentiments, the Indian state of Maharashtra has decided to freeze three deals with Chinese firms. The total amount of these three deals works out to $660 or Rs.5000 crores. Earlier, the Haryana government had decided to annul the contract worth $100 million with a Chinese state-owned company.
The Maharashtra government froze the Rs 3,770-crore MoU with Great Wall Motors to set up an automobile plant in Talegaon near Pune. It also froze the PMI Electro Mobility’s joint venture with Foton (China) to set up a Rs.1,000-crore factory. In addition, it also froze the contract with Hengli Engineering which was worth Rs. 250-crore.
All the above deals were signed at Magnetic Maharashtra 2.0 investor virtual meet which was attended by Chinese Ambassador Sun Weidong.
Given the public mood, it is unlikely the Center or the State government will allow Chinese companies to work in India.