India discourages Chinese businesses

[Neo]

India discourages Chinese businesses

May 18, 2010

An Indian minister has been seriously sanctioned and may lose his job. Mr. Ramesh has identified Bharati (aka Indian) sources which create impediments for Chinese companies that are interested in doing business in Bharat. Mr. Ramesh has said that Bharati intelligence agencies create hurdles for Chinese companies and that the Home Ministry discourages Chinese investment. These allegations have huge repercussions for Indo-Chinese relations, and may spoof Chinese companies which want to do business in Bharat.

* Union minister for environment Ramesh, speaking to Indian journalists in the Chinese capital on Saturday, had charged the ministry of home affairs with being “overly defensive” and “alarmist” in its approach towards the entry of Chinese companies to India.
* He had also alleged that the security establishment was putting “needless” restrictions on Chinese investments in India and “imagining demons where there are none”.

New Delhi: A couple of days after Union minister for environment and forests Jairam Ramesh, in a serious breach of protocol, made critical remarks on ministries of his own government in Beijing, he was reprimanded by prime minister Manmohan Singh and Congress president Sonia Gandhi on Monday. Ramesh, speaking to Indian journalists in the Chinese capital on Saturday, had charged the ministry of home affairs with being “overly defensive” and “alarmist” in its approach towards the entry of Chinese companies to India. He had also alleged that the security establishment was putting “needless” restrictions on Chinese investments in India and “imagining demons where there are none”. A peeved home minister, P Chidambaram, dashed off a letter to the prime minister (PM) expressing his displeasure with Ramesh’s comment. He is learnt to have written to the PM inquiring whether he should “issue a rejoinder against the environment minister’s allegations”.

The PM spoke to Ramesh, advising him sternly against making comments on the functioning of other ministries and especially with regard to the relationship with important neighbours like China. “There is no confusion in our policies towards China and we continue to strive for constructive engagement with Beijing,” Singh is learnt to have communicated to Ramesh. While Chidambaram refrained from a direct verbal confrontation with Ramesh, he chose to field home secretary GK Pillai to rebut the charges. “It is wrong to say that the security establishment was biased against Chinese companies.

They are already present in India in a big way,” Pillai said. He added, “They are working in a variety of sectors, including the telecommunications sector. I don’t think there is any discrimination happening from the government’s side.” Citing examples of ongoing talks with Chinese investors interested in the Indian market, ministry sources said, “in this week or the next we will be meeting with representatives of two Chinese telecom companies who are interested in investing in the Indian market. This apart, the Chinese ambassador will also be meeting the home secretary to discuss similar issues.”

Ramesh, the media savvy minister, went incommunicado after his arrival from Beijing on Monday morning. He sent a written clarification of his remarks to the prime minister and the Congress president soon after arrival. However, Congress sources say his defence was found “untenable”. The high-profile minister, known for his confrontations with his cabinet colleagues — first agriculture minister Sharad Pawar, then surface transport minister Kamal Nath — has been under attack from the opposition and sections within the Congress for breach of protocol. The Congress, which until Sunday was cautious in its remark over the issue, on Monday came out in open criticism of the minister.

“The prime minister’s office has already clarified that it is not appreciated that any minister comment on other department or ministries, especially and particularly when they are on foreign soil,” Congress spokesperson Abhishek Manu Singhvi said. “We would like to add that even within the country, there should be no occasion to air differences about other ministries publicly. Enough fora and opportunities are available to express divergent views within the party and government but certainly it can’t be done outside these.” However, Congress sources said that for now no punitive action would be taken against Ramesh, despite opposition Bharatiya Janata Party’s demand for his sacking from the cabinet. “For now, a strong reprimand from the highest echelons of government is enough. The minister should take this seriously and desist from utterances that embarrass the government. The party or the government wouldn’t want another Shashi Tharoor in its midst,” a senior Congress leader said. PM Manmohan Singh raps blabbermouth Jairam Ramesh Anil Anand & Puneet Nicholas Yadav / DNA

India discourages Chinese businesses