Chinese Investments in India may be at risk following the amendments made to the Enemy Property Act in India.
The nearly five decades old Act dictates the future of the properties in India owned by citizens of China and Pakistan. Following the amendment to the Act, around 10,000 properties are now all set for auction by the government of India. A report by news agency PTI said that any property managed on behalf of or owned by an enemy, an enemy firm, or an enemy subject would be referred to as an enemy property.
The Enemy Property (Amendment and Validation) Act is applicable only to the heirs of the property. This means that the Act ensures that the heirs would hold no claim over the property behind by people who obtained citizenship of China or Pakistan.
Concerns over Chinese Investments in India
The amendments made to the Act have now however led to new concerns over the Chinese investments in India. According to an article published by Chinese daily the Global Times, it is now concerning that the Indian government may confiscate Chinese-held assets in India in case of a military conflict between the two nations.
Over the years, several Chinese companies like Lenovo and Xiaomi have set shop in the Indian subcontinent resulting in heavy investments by China to India. The report mentions that in 2016, the Chinese investments in India were much more than previous years. It further adds that the new amendment in the Enemy Property Act has resulted in uneasiness among Chinese investors who would now seek a reassurance from the Indian government.
Modi’s Efforts May Be Washed Out With A Cut In Chinese Investments
The daily mentions that while the Indian PM Narendra Modi has been making several attempts to make India a dream destination for foreign investments, his efforts may be washed out due to the amendment to the Act. Chinese investments may record a decrease if India does not take steps to reassure the Chinese investors to build confidence, it added.