Govt. may extend e-visa facility to Chinese nationals

A series of meetings to be chaired by Home Secretary could decide the issue next week

April 25, 2015 02:02 am | Updated November 16, 2021 04:44 pm IST - NEW DELHI:

India may extend e-visa on arrival facility to Chinese nationals when Prime Minister Narendra Modi visits China from May 14 to 16, a move that has been held up for several years due to opposition from security agencies.

The Home Secretary is expected to chair a series of meetings focussing on Chinese concerns next week, when the decision could be taken.

Ahead of Mr. Modi’s visit, Chinese companies have raised serious issues over investing in India, also calling for an end to the government’s policy of “security clearances for countries of concern” that applies to China.

Representation

Sources have confirmed to The Hindu that the Ministry of External Affairs made a representation to the Home Ministry’s policy, which “discriminates” against Chinese investors, saying that visas were being given in a manner that “lacked objectivity and predictability.”

The issues are being taken more seriously after Chinese truck manufacturer Beiqi Foton Motor, which had announced the biggest FDI of $400 million for a plant near Pune in 2011, began to downsize its plans this February as it could not meet deadlines for setting up production because of bureaucratic hurdles.

‘Chinese investors feel unwelcome’

Home Secretary L.C. Goyal met with the Indian Ambassador to Beijing, Ashok Kantha, over the issue in January and asked for the National Security Council secretariat to draw up a report on the implications of easing the restrictions in order to make an announcement during the Prime Minister’s visit .

“If Mr. Modi could launch some policies to help us, we are confident that Chinese companies would like to help Indian industry grow,” said the Secretary-General of the Chamber of Chinese Entrepreneurs in India, Li Jiang. “At present, Chinese businesses feel that both their money and their people are unwelcome,” he added, speaking to The Hindu from his office in Gurgaon.

The charge of discrimination is two-fold, say Chinese businessmen. To begin with, Chinese companies wishing to set up ventures in India have to face a similar scrutiny that companies from Pakistan, Bangladesh, North Korea and Myanmar do. “These are not countries that would even invest in India, so China, with Hong Kong and Macau included, is the only country really affected,” said one official. Government sources said the Home Ministry is now considering a proposal to move from designating “countries of concern” to targeting “investments of concern” that would pinpoint only a specific company or deal.

The other issue, say businessmen, is obtaining work permits for their senior managers to work in India. In an interview to The Hindu this month, Chinese Ambassador Le Yucheng said the restrictions were one reason for the burgeoning trade deficit of $37.8 billion, which is more than half the bilateral trade between the two countries. “The key is to reduce restrictions and streamline procedures on business visas. More Chinese businessmen will bring more investments, which will help improve trade balance,” Mr. Le said.

Sources told The Hindu that several agreements will be under discussion during Mr. Modi’s visit, when he is expected to visit Xian, Beijing and Shanghai. Chinese railway companies have held “pilot runs” for their trains on the Delhi-Mysore-Chennai route, which could see some forward movement. China is expected to announce investment in renewable energy projects, especially solar and wind projects, while a nuclear cooperation agreement may be discussed. India and China are also likely to announce a “scientific agreement for maritime cooperation”.

Mr. Modi will be greeted by President Xi Jinping in Xian on May 14. From there he will travel to Beijing for bilateral talks, and then to Shanghai to address the Indian Diaspora on May 16.

(With additional reporting by Devesh Pandey)

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