China's official media today cautioned India that it will "lose more than gain" if it went ahead with its reported move to tighten security checks on Chinese firms in the country after Beiijng scuttled India's bid at the UN to ban JeM chief Masood Azhar.
"India stands to lose more than gain if it tightens its security checks on Chinese firms or if it scrapped security clearance to Chinese companies," an article in the state-run Global Times said.
The article came days after official sources in India said the view in the security establishment is that security clearances given to Chinese companies should be reviewed after China's action in the UN in the wake of terror strike at the Pathankot airbase.
"Chinese companies may think twice about their expansion plans in India over the possible security clearance review. Thus, India's development, which relies on China to improve its poor infrastructure, will be hindered," Hu Zhiyong, a research fellow with the Institute of International Relations at the Shanghai Academy of Social Sciences told the daily.
Though Chinese President Xi Jinping during his visit to India in 2014 announced USD 20 billion Chinese investments in India in the next five years, Indian officials and business organisations say the flow of investments remained low despite India liberalising visa regime and removing security clearances for Chinese firms.
A Chinese embassy official in India familiar with China's overseas investments acknowledged to the Global Times that India's security clearance of Chinese firms has been showing signs of relaxing in recent years, especially after Narendra Modi became the Prime Minister in 2014 and Minister of Home Affairs Rajnath Singh's visit to China November last year.
"Although India conducted a security review of Chinese firms, Chinese companies in India say the general business environment is improving, and the Chinese companies' feedback is positive," the official said.
Media reports say that the Indian government has given around 25 Chinese companies security clearance in the past two years for projects mostly in power, telecoms, railways and infrastructure.
