Chinese investments, G2G policy undergo Central security review

Published: 14th June 2016 05:12 AM  |   Last Updated: 14th June 2016 05:12 AM   |  A+A-

NEW DELHI: The rise in Chinese investments in India in 2015, though insignificant, is now spurring more government security reviews as in certain cases the extent of state ownership is not always clear.

The concerns are multiplied by the fact that China is aggressively pursuing investments in Pakistan and furthering its G2G policy — Gwadar to Guangdong — that moves through India’s heartland. As per an estimate, China’s total investment in India last year was $ 870 million, which is seen as a significant rise, though meager in comparison with countries such as Hong Kong.

According to the Department of Industrial Policy and Promotion (DIPP) total Chinese investment between 2000 to 2014 was merely $897 million. But, this increase also comes with its own set of concerns as flagged by a government note. There are three major security concerns says NSCS — disruptions in critical infrastructure, management structure of Chinese companies and espionage.

Some Chinese companies blur the line between national and corporate interests, says a government note adding that investments by Chinese companies in sensitive locations and close to bordering areas was also a cause for concern.

And these security concerns are not just raised in the Indian security establishment. Sources said United States too is worried about a surge in Chinese investment and they have also launched stricter security audits for Chinese companies coming to US market.

“India wants China to take advantage of the ease of doing business and become a partner in its growth story, but at the same time security agencies want more caution in certain sectors that is sensitive from the country’s infrastructure point of view.”

“Chinese investment requires a delicate balancing act, involving security audits . We need investments in certain sectors and that is welcome, but some critical infrastructure has to be guarded, keeping invisible investment moving in India triggered by a planned design,” sources said.


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp