China is unlikely to deter its firms from investing in India, but it is not going to be an easy sailing for Chinese investors who will have to deal with labour unions which they are not used to at home, official media reported on Tuesday.
As India is wooing investments from China, “the Chinese Government has not expressed opposition to the general industrial transfer from China to India”, an article in the state-run Global Times said. Chinese officials have rolled out concrete measures to encourage local enterprises to go abroad and explore overseas markets, including India, it said. “Currently, India is on track to hold on to its spot as one of the world’s fastest growing emerging countries, and Chinese manufacturers are salivating over this fast-growing consumer market. Furthermore, the Chinese economy will likely gain momentum from the formation of a new cross-nation industry chain between the two neighbours. “Considering the above factors, China’s Government is unlikely to deter India's effort to woo Chinese component companies, despite the possibility that this could cause job cuts in the manufacturing sector at home.”