China Clamps Down On Indian Business Visas, Electronics, Auto Firms Feel The Heat

Indian executives travelling to China for business are facing growing hurdles as Beijing tightens scrutiny of visa applications, creating fresh challenges for electronics and automobile companies that depend heavily on Chinese components, equipment and technical expertise.The Economic Times, citing executives at electronics and automobile contract manufacturing firms, said that Chinese officials have approved only around 20-40% of business visa applications submitted by several Indian companies in recent months, compared with near-complete approval rates earlier.&amp;nbsp;The tighter visa regime comes at a time when Indian manufacturers remain significantly dependent on China for components, capital equipment and technical know-how. Depending on the industry, as much as 50% of components and capital goods are imported from China, executives said.ALSO READ:&amp;nbsp;India, China Agree To Use Diplomatic, Military Channels To Avoid LAC Misunderstandings&ldquo;Getting a Chinese visa is no longer as seamless as it used to be,&rdquo; said the managing director of a large electronics manufacturing company, who requested anonymity. &ldquo;The process is taking much longer, rejections require fresh applications, and even then, approvals for business visas have become extremely limited.&quot;The restrictions are beginning to affect routine business operations and project execution, particularly for companies that need to send personnel to China for manufacturing, sourcing, equipment installation and technical work.Several companies have informally approached the Centre, urging the government to raise the issue with Beijing through diplomatic channels.Economic Times reported that a person familiar with India-China ties confirmed that the government is aware of the issue.&ldquo;China will do everything in its power to obstruct India&#039;s rise and progress,&rdquo; the person said. &ldquo;Rejection of visas of Indian businessmen is one such measure. Constricting Indian supply lines and flow of products, technology and personnel is just the latest version of the coercion package they have evolved,&rdquo; the person said, requesting anonymity.ALSO READ:&amp;nbsp;India&#039;s China+1 Bet Gets An AI Boost As Fund Managers Eye Capex WinnersThe issue has also been flagged by frequent Indian business travellers on social media platforms, including Reddit, who have reported a sharp increase in visa rejections despite the resumption of direct flights between India and China.The latest visa restrictions come against the backdrop of strained India-China relations following the Galwan Valley clash in 2020 and the military stand-off that continued for more than four years.New Delhi subsequently tightened investment rules for Chinese companies through mandatory multi-ministry approvals under Press Note 3. India also significantly restricted visas for Chinese nationals, with exceptions largely made for technical personnel employed by Indian companies covered under the production-linked incentive (PLI) scheme.

China Clamps Down On Indian Business Visas, Electronics, Auto Firms Feel The Heat

Stricter Chinese visa approvals are disrupting Indian companies' China travel, threatening supply chains and project execution in electronics and automobiles.

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