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China: FDI Caution but Huge Import Dependence

10 min · 6 mei 2026
aflevering China: FDI Caution but Huge Import Dependence artwork

Beschrijving

India may be loosening FDI rules for neighbouring countries, but the bigger story lies elsewhere. In this analysis, Debashis Basu explains why Chinese investment in India remains negligible—while India’s dependence on Chinese imports continues to deepen. Despite policy tweaks like Press Note 3 relaxations, China sees India less as an investment destination and more as a massive export market. The numbers reveal a stark imbalance: soaring imports of critical goods—from electronics to machinery—against minimal exports. Meanwhile, China is strategically deploying capital across Southeast Asia, Latin America, Europe, and Africa—building manufacturing ecosystems and extending its global industrial dominance. So what is India missing? The answer lies in policy clarity, industrial strategy, and learning from China’s own playbook—where foreign investment was used as a tool for technological and manufacturing transformation. Is India ready to prioritise production and competitiveness over policy ambiguity? ---------------------------------------- Hosted on Acast. See acast.com/privacy [https://acast.com/privacy] for more information.

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