Government debates tough China steps without hurting FDI

Jul 03, 2020, 06:33PM ISTSource: TOI.in

A section within the government is of the view that the Centre must adopt tough measures against China over the border standoff and act against Beijing’s interests in areas that do not add value to India’s economy, but ensure that investments critical for accelerating growth should not be derailed. The view is amplified by the fact that growth concerns remain a top priority for the economy and any move that affects investments would hamper recovery from the devastating impact of the lockdown imposed to stem the spread of the coronavirus pandemic. Chinese companies have heavily invested in multiple sectors of the economy and shedding the linkages overnight would be a tough job. “We need to think strategically and also send a tough message,” said a source. The Centre had on Monday banned 59 Chinese apps for “engaging in activities which are prejudicial to the sovereignty and integrity of India, defence of India, security of state and public order”.

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