The Chinese government has reportedly “sought clarity” from Indian authorities on imports into the country being delayed due to “100 percent scrutiny”. Domestic supply chain providers have also chimed in their displeasure, as the “bad timing” coincides with many businesses re-opening post lockdown.
“The Chinese government has communicated to the Indian side that Chinese companies are facing supply chain issues owing to the recent move,” a source told The Economic Times. Sources added that “back-channel talks” to de-escalate the matter are also on.
Moneycontrol could not independently verify the report.
Imports from China were slapped with increased scrutiny and compliance requirements amid the border row in Ladakh. Reports have been doing the rounds of India considering completely stalling Chinese companies from state and central government projects, besides pushing for ‘Atmanirbhar Bharat’.
Industry bodies such as FICCI, India Cellular and Electronics Association (ICEA) and Manufacturers’ Association of Information Technology (MAIT) however are not sold.
Representing industries heavily dependent on Chinese imports, they have reached out to various ministries against the proposal to manually examine all imports from China. They stated that such a move would disrupt supply chains, damage expensive and critical components and “make things difficult for an already stressed industry,” it said.
The electronics manufacturing industry is worried that such checks are already being conducted despite lack of written orders. “Buyers may also not be too keen on unsealed packaging,” they told the paper.
ICEA has written to the revenue and commerce ministries, Department for Promotion of Industry and Internal Trade (DPIIT) and Ministry of Electronics and IT (MeitY), saying the move would affect local companies.
A range of Indian companies are also entirely dependent on Chinese inputs in critical areas such as pharmaceuticals, automobiles, electronics, electrical machinery and several others, ICEA added.-Money Control