Indian government blocks Chinese company’s investment in electric vehicle manufacturing plant
The Indian government has rejected a $1 billion investment plan by Chinese automaker BYD to set up a four-wheeler manufacturing facility in Hyderabad.
The decision comes amid heightened tensions between India and China over a border dispute in the Himalayas.
BYD had proposed to invest $1 billion in a joint venture with Megha Engineering and Infrastructures Ltd (MEIL).
The proposed facility would have had an annual production capacity of 300,000 vehicles.
The Indian government has been reluctant to approve major investments from China in recent months.
In April, the government blocked a $1.5 billion investment by Chinese firm Tencent Holdings in Paytm, an Indian digital payments company.
The government’s decision to reject BYD’s investment is a sign of its growing concerns about Chinese investment in India.
The government is worried that Chinese companies could use their investments to gain access to sensitive technologies or to spy on Indian businesses.
The government’s decision is also likely to be welcomed by Indian businesses, who have long complained about unfair competition from Chinese companies.
The rejection of BYD’s investment is a setback for China’s efforts to expand its economic footprint in India. However, it is unlikely to deter Chinese companies from investing in India in the long run.
The Indian government has said that it is still open to investments from Chinese companies, but that they will be subject to more rigorous scrutiny.
It remains to be seen how the Indian government’s decision to reject BYD’s investment will affect the relationship between the two countries.
