NEW DELHI: It’s being called PLA scan. A number of Chinese companies that are present in India, as well as some foreign companies with investments from across the border, are under the scanner for alleged links with the People’s Liberation Army (PLA) as the Centre presses ahead with its plan to prune China’s involvement in the economy, reports Sidhartha.
While the new rules on beneficial ownership for FDI approvals is expected to help track investors better, fresh investment into these companies, including start-ups with Chinese funds, will be scrutinised in detail to ensure that they do not pose any security threat, sources told TOI.
Separately, the finance ministry and
are finalising the threshold for imposing checks on FII flows from across the border, while seeking to ensure that the rules do not impact market sentiment. “The data are being looked at and the two agencies will decide the threshold and the system of reporting and monitoring,” a government source told TOI.
Chinese companies have come under the radar after the Modi government, in retaliation against PLA’s attack on Indian troops on the night of June 15 at Galwan Valley in Ladakh, decided to junk the policy cauterising bilateral economic and trade ties with Beijing’s recalcitrant stand on the LAC. The aggressive posture was unveiled dramatically with the government banning 59 Chinese Apps — something which marked a blow to China’s ambition to see its companies grow into global tech giants to rival American players.
It has also deepened the doubts about Huawei and
’s participation in 5G business.