India-China joint ventures could face fresh regulatory hurdles as China's new outbound investment regime is expected to require approvals from Beijing even after companies secure clearances from Indian authorities, according to people familiar with the matter.
The new framework could impact several proposed India-China joint ventures, including Dixon Technologies' partnership with Vivo, Uno Minda's proposed venture, Amber Enterprises' tie-up with Oppo, and projects involving PG Electroplast, the sources told NDTV Profit.
Under the revised regime, companies are understood to be engaging with their Chinese partners to initiate the process of obtaining outbound investment clearances from Beijing.
People aware of the developments said India has been classified as a "sensitive destination" under China's new outbound investment framework. As a result, Beijing is expected to closely examine proposed investments, including equity participation, technology transfers and governance rights before granting approvals.
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The additional layer of scrutiny could lengthen timelines for India-China joint ventures, even after they receive approval under India's Press Note 3 (PN3) norms, which require government approval for investments from countries sharing a land border with India.
According to the sources, Beijing's new rules could also reshape the structure of future India-China deals, with companies potentially having to modify ownership arrangements, technology-sharing mechanisms and governance frameworks to meet regulatory requirements.
NDTV Profit reached out to Dixon Technologies, PG Electroplast, Amber Enterprises and Uno Minda for comments. Responses are awaited.
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