NEW DELHI: Chinese companies in India could continue to face the heat as the government considers granting easier import approvals for non-Chinese companies in India, top officials said. “We are monitoring the situation and this could last a few more days,” a senior government official told ET, even as India enters seventh day of imports from China being stranded at the ports owing to a nationwide alert.
However, according to sources, the thinking in the government is that Chinese companies continue to be subjected to 100% manual checks even when the alert subsides. For instance, Taiwanese smartphone maker Foxconn, which runs two plants in India under different units, has not been able to get clearances for consignments to the factory that manufactures for China’s Xiaomi.
“There were discussions on whether to permit Authorised Economic Operators as the industry had made this proposal but it has now shifted to whether all imports, barring ones for Chinese companies, should be permitted,” another person familiar with the discussions told ET.
Meanwhile, selective approvals are being granted to industry with the latest nod being to Korea’s Samsung, within hours of meetings at the highest levels in the government on Saturday evening. This follows a handful American companies being given customs clearances late last week. “Right now, the clearances are happening on a case by case basis,” the official said.
Even as industry groups clamoured for release of consignments crucial for production, government officials say they are working towards easing the pain of the industry. “We are aware of the ground situation and are finding mechanism to ease the pain,” a second government official said.
After a series of discussions with the government, trade associations have taken a softer stance towards the move stalling Chinese imports. “We are in regular communication with the government and have been assured that all measures are being taken in national interest and the industry will not suffer,” said Pankaj Mohindroo, chairman of India Cellular and Electronic Association.
ET had reported in its June 27 edition that the government was considering partial relaxations to certain categories of imports.
Source: indiatimes.com