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What’s the state of China-India trade and investment?

  • Businessmen explain why it remains difficult to do business in the China market, and a persistent lack of direct flights just scratches the surface

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Indian businessmen say “risks and challenges cannot be overlooked” when it comes to doing business in China. Photo: AP
Kandy Wongin Hong KongandHe Huifengin Guangdong

Indian businessmen have flagged “unforeseen challenges” to doing business with China, even as bilateral trade has remained strong.

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Speaking to the post, the investors touched on a variety of uncertainties, including a lack of direct flights, the stringent regulatory environment, cutthroat competition with local players, geopolitical frictions, and China’s economic slowdown.

Particularly, “Indian businesses are concerned about the potential of sudden political decisions that could impact their operations”, said Deepak Khanna, vice-president for the Asia-Pacific region at Indian home appliances company Usha International, which has operations in the southern Chinese city of Guangzhou.

While acknowledging “weak sentiment among Indian businessmen regarding investment in the Chinese market and vice versa”, Khanna warned that “the associated risks and challenges cannot be overlooked”.

“Understanding the local culture, staying updated with regulatory changes, and being prepared for unforeseen challenges are crucial for success,” he added.

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The worries came amid ongoing tensions between the world’s two most populous countries that are caught up in a border row and anti-dumping probes.
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