Sir — This refers to the article, “Beating India’s drum as investment haven” (September 4) by Gautam Mukherjee. China has accumulated a lot of money due to its trade imbalance with the US. However, there is meagre return on its investments in US Government Bonds. Now, there is also the possibility of losing the principal amount as the value of the bonds keeps declining.
Therefore, it makes sense for China to put its money to work in India, where rewards may be higher than the risks. Also, it will help China earn some goodwill in this country. Finally, China worked closely with Mr Narendra Modi, when he was Chief Minister of Gujarat, at a time when he was ostracised by the West.