Beijing Warns about Economic Costs After India Deploys Tanks to its Border

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After India sent tanks to the Chinese border, Beijing has warned that the action could threaten potential investment opportunities.

Beijing Warns about Economic Costs After India Deploys Tanks to its Border

Photo: AP Photo / Carolyn Kaster

After India sent tanks to the Chinese border, Beijing has warned that the action could threaten potential investment opportunities, the Global Times newspaper reported on July 21.

On July 19, the NDTV TV channel reported that New Delhi has deployed nearly 100 Russian-made T-72 tanks to Ladakh’s Chinese border, seeking to increase its military presence in the mountainous region between disputed Kashmir and Tibet.

On July 21, China’s Ministry of Commerce said that Beijing may rethink its Indian investment strategy, and warned New Delhi against the provocation.

Earlier Global Times reported that China has increased its outbound investments up approximately 59% in the first half of the year. This means that many Chinese firms, “including smartphone manufacturer Xiaomi and PC computer maker Lenovo, have turned their eyes toward India.”

While Beijing increases its export, New Delhi raises its import demands. Indian Prime Minister Narendra Modi has been working to attract overseas firms.

However, according to Global Times, “it is puzzling that while deploying tanks near China’s border, India still strives to woo Chinese investment.”

“In an index on the ease of doing business, from the World Bank, India currently ranks 130 out of 189. Despite India’s stated goal to rise to within the top 100 this year, the nation still has its work cut out for them,” the newspaper noted.

At the same time Global Times pointed out that China and India have a “large potential for a successful relationship”, and the countries should “work hard to clear up misunderstandings in a bid to lay a solid foundation for the sustainable development of economic and trade cooperation.”

Tensions between the neighbors have escalated recently. Earlier this month, the Indian Navy deployed three ships to the South China Sea to conduct joint military exercises with Malaysia.

Meanwhile, Nepalese Prime Minister Khadga Prasad Sharma Oli has expressed an interest in working more closely with the Chinese government, a move that New Delhi has not liked.

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