Chinese Firms Have Strong Model Of Investment In Gujarat
Following the death of 20 soldiers in a bloody battle with the Chinese Army in Galwan Valley, the nationwide anger and demand for boycott of Chinese products is gaining momentum. But Chinese companies have set a strong foothold in the Indian market and have invested heavily in the energy, steel, and automobile sectors in PM Modi's home state of Gujarat. Interestingly, the way for these Chinese companies was made easier by PM Narendra Modi himself.
The March report of Brookings India, which researches investments worldwide, states that Chinese company Tabion Electric Apparatus is the largest energy-making heavy equipment manufacturer in the country. In 2014, when Chinese President Xi Jinping visited India, this company announced the creation of an industrial park in Gujarat. In Gujarat, this company set up a transformer making plant, in which an investment of $400 million was announced and till now, an investment of $150 million has been made.
China's Xingzing Company was founded by the Chinese Army PLA. The Chinese army continued to run this company for many years and later this company was separated from the army due to the reforms in the Chinese army. Now this company is investing heavily in steel plants of India.
Another Chinese company, Shingshan Holding Group, has also invested $1 billion in a steel plant at Dholera Industrial Area in Gujarat, under a joint venture in India. The goal of this company is to further invest $2 billion in steel plants.
Apart from this, Chinese companies have also invested heavily in Gujarat in the automobile sector. SAIC Motor Corporation, a Shanghai-based automobile company reached India in 2019. Then the company announced that its brand MG Motors will produce vehicles according to the needs and convenience of the Indian customers.
For this, the company announced an investment of Rs 2000 crore in General Motors manufacturing plant in Halol, Gujarat. Apart from this, the Chinese are preparing to invest another 350 million dollars in India's automobile sector.