Electronics Inc’s joint venture wait at China gate gets longer: Tech tie-ups face delays pending approval

Economic Times
Economic Times
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Indian electronics firms are experiencing delays in joint ventures with Chinese companies due to policy inconsistencies from Beijing. This impacts India's goal for self-sufficiency in component manufacturing.
Electronics Inc’s joint venture wait at China gate gets longer: Tech tie-ups face delays pending approval
A What happened
Indian electronics firms are facing significant delays in establishing joint ventures with Chinese companies, primarily due to inconsistent policies from the Chinese government regarding technology transfer. Executives from companies like PG Electroplast have expressed frustration, noting that they are still awaiting government approvals that were expected to be resolved months ago. Notable deals, such as PG Electroplast's collaboration with Highly Group and Hisense Group's plans to acquire a stake in Epack Durable, are stalled. The Chinese government is scrutinizing these partnerships to protect intellectual property rights and ensure that critical technology is not shared. This situation is detrimental to India's ambitions for self-sufficiency in electronics manufacturing, as many companies are reliant on these collaborations to enhance local production capabilities. The delays also reflect broader challenges in foreign direct investment regulations between India and China.

Key insights

  • 1

    Policy Inconsistencies

    Chinese government policies are causing delays in joint ventures.

  • 2

    Impact on Self-Sufficiency

    Delays hinder India's goal for local electronics manufacturing.

  • 3

    Pending Approvals

    Several joint ventures await crucial government clearances.

Takeaways

The ongoing delays in joint ventures between Indian and Chinese electronics firms highlight the challenges posed by regulatory inconsistencies. These issues not only affect individual companies but also impede India's broader objectives for self-sufficiency in electronics production.

Topics

Economy International Affairs