Harsh Mohit Shares information by refining inner aspects of any topic
Thanks for the A2A.
Indian startups have a considerable amount of investment from China. Agreed. But did you say ‘only’ china?? Really, bro!!
The indian startups have mainly investments pumped in from three major investment firms, that are namely, tencent from China, Softbank from Japan and Sequoia capital from US. These companies have considerable amount of investments in indian startups. So, indian startups don't get their investments from China 'only'.
Now, let's see one thing I.e. Softbank (which is a Japanese company) owns around 30% in alibaba and naspers (which is a south African company) owns around 32% in tencent, of which both are the biggest stakeholders in the respective companies!!! Moreover, these (alibaba and tencent) are the only companies which have considerable amount of investments in indian startups!! Then why the world considers them as chinese ??- you must be scratching your head with that question!!Right??……..because of their CEOs. Let me explain you in simple points:-
* A person when launches a start-up, he/she is willing to collect investments from around the globe to pump in some money to his company for the further development of his/her firm!!
* In that order, roughly 70% (sometimes more) of the company's shares are sold to different investment firms. This helps the company owner to enhance it's business to hooks and corners of the world or the native country from which he/she belongs..
* But still the company is owned by the CEO only (means the person who started the company) because the maximum voting shares (the shares which help a person to make the final decision for the company), among the board of directors, is held by him/ her.
In this way, a company is still held by a company owner, who started it; for instance let me clear you more by giving some examples:-
Mark zuckerberg owns 14–16% shares of facebook, yet he is the owner of facebook. Ma huateng owns around 9% of tencent holdings limited, yet he is the owner of tencent. Jack ma holds 14%(not sure, because it's still unclear) in alibaba, yet he is the owner of alibaba. Do you know why?? Because these have done the same things, which I mentioned above and which a general startup does to raise money. So, in this way, despite having considerable amount of foreign investments, indian startups are controlled by indian owners only!!
Now, as far as the Chinese economy is concerned, I think that, it will be affected if India bans trade with china because see, yet india has imports from China worth $65 B and exports are of worth $15 B, still india will have an upper hand if it bans trade with china because of the following reasons:-
* Many US, Swiss, etc firms have their manufacturing units in china due to which they import their goods from china to india; now, if trade with china is banned, then these companies will either have to shift their plants to india or will have to build new plants in india, which will ultimately boost indian economy and somehow affect chinese economy negatively.
* Due to US-China trade war, many chinese companies are looking forward to india for their market expansion, and if the trade between the two neighbouring nations is banned, then these companies will have to bear a huge loss.
* (Very important) Despite the fact that china-india trade constitutes for only 14% of China's total trade across the world, yet their companies have their second, or in some cases, biggest market in india. For instance, xiaomi has its second biggest market in india; tiktok has the biggest market in india with around 40% of its customers residing in india, vivo has its second biggest market in india, etc, etc. If the trades are banned, then these companies will have to loose a huge of chunk of their profit which they earn from india and this will eventually devastate the Chinese economy because ‘some of the companies which I named' are considered the biggest companies of china (excluding the state-owned companies)…
Anchal Tamrakar former Self Employment
China is really atam nirbhar Country they can live with close economy or if they sanctioned by united states they can easily survive and thrive in it. They already tested in 1980 famine so they are hell ready whatever happens…
They worked hard builted economy builted army builted military given debt to near by country to become Ally..
Who is responsible for the growth of China the British empire , World war 1 world war 2 , the British empire try to colonize China with help indian , the world war acknowledged them that world full of wolf which can Chase down and tear them apart of if they become weak…
China is open to the world in year 1980 and why whole world want to buy from China …???? whereas India is open the world since 2000 years and we didnt move a inch….
The technicall term could be Chinese are best in “ INNOVATION IN GENERALISATION”.., You will find so much novelty in small product ..in product feature or packaging or presentation or color …They are Innovative in making day to day product of people in attractive way …
They literally adopted European sense of living step by step development..
American and European countries were very happy after this successful trip. He thought that he had put the most powerful communist Soviet Union in his court. As soon as relations with America were established, it did not take long for China to open the doors of trade from Europe. China began to trade with Western countries very carefully. Apart from business, he sent a large number of his students to the universities there. By reverse engineering their machines, they started making and selling similar machines. As China got richer, it built a huge infrastructure of roads, rail, ports in its country. Whichever ruler came into the country all worked on the formula given by one of their top leaders Deng Xiaoping - Hide your capabilities and bide your time.
Here China was progressing quietly, on the other hand US and its allies did not stop, they wereted their money, military resources, soldiers by getting stuck in wars with Iraq, Afghanistan, Syria, Libya. Whereas China earned billions of dollars by trading with them. In those days, there was a slogan of China peaceful rise of China
There is another secret behind China's progress, and that is the complex social structure of Chinese. It is very difficult to get any secret out of them. History is witness, the art of silk making was hidden by China for two hundred years, which was later revealed to the world by the silk bugs that were hidden by some Buddhist monks.
Matruprasad Mishra Ph D course work in Economics, Utkal University, Bhubaneswar (2017)
In March 2015, Paytm received its huge stake from Chinese e-commerce company Alibaba Group based in Hangzhou, China, after Ant Financial Services Group, an Alibaba Group affiliate, took 40% stock in Paytm as part of a strategic agreement. Soon after, it received backing from Ratan Tata, the MD of Tata Sons.
Ola has raised $50 million at a valuation of about $4.3 billion from Sailing Capital, a Hong Kong-based private equity firm, and the China-Eurasian Economic Cooperation Fund (CEECF), a state-backed Chinese fund.
In 2017, Naspers led an $80 million funding round into Swiggy. Swiggy received $100 million from China-based Meituan-Dianping and Naspers in 2018 and then later a string of investments took the company's valuation to over a $1 billion. Naspers is headquartered in South Africa.
Thus various countries have contributed in building these start ups in India.
Besides Indian banks, including State Bank of India, Bank of Baroda and ICICI Bank, have established a presence in mainland China — Shanghai and Beijing — in line with a rise in bilateral trade and investments. At Hong Kong, an important financial centre in Asia, Indian banks have had business operations for decades.
Thus it is not an easy way out to get out of China, the most populous country of the world inspite of periodic hostilities. The Government has stopped automatic investment of Chinese equity in India. All Chinese investment has to be routed through the Government channel. Besides the exposure of Indian companies has to be diversified so that Chinese exposure can be contained. The main issue should be attaining self-sufficiency through hard work instead of depending on China or affecting their economy.
Vinod Midha former Executive Director: Technology,Business,Strategy
We are not interested in affecting any country’s economy. We are interested in building our own economy. I think that is not a wrong focus to have. What ever are the hurdles to achieve that must be addressed.
China is also funding some start ups which you mentioned to build their own interest. That is natural. Are any of these investments in a critical or high tech area. You should look at the the total investments made in all these start ups. I do not have exact figures but should be max 2,5 to 3 billion USD and this is spread over more than 5 years. Against this the business which Chinese companies get per year from India may be 30 times more per year. I do not understand your reason for placing of Chinese investment on such a high pedestal.
Just a small question- how many of the Chinese funded start ups you mentioned above, you need in the present environment of lock down and for next few years. I have nothing against these companies which were providing good services and therefore returns for their investors (which is reason for any one to invest). I am just saying that they are not in the critical sectors.
Richard Kenneth Eng former Project Team Leader at ATI Technologies (1993-2000)
The world depends on manufacturing supply chains for which China is a crucial link. If the world wants to divorce itself from China, it will cost the world a great deal. Everybody suffers and the global economy essentially collapses.
Ngee Kiat Low former Senior Management
😂😂Not much impact since China has a huge 500m+ middle class market 3x US size. And we are really talking about US and their core allies, the 5 Eye Anglo Saxon Alliance. Rest of the world dont really care about the USWO.
B.T. Yang Born in china and live in Taiwan
Well, if the other choice is to buy American, then the 3rd world will remain 3rd world forever.
Note that 40% of the world’s population is on less than 2 USD per day. The on-going average minimum wage in the US is approaching 15 USD/hr.
Banning is for the “to have”. The tired, the poor, the huddled masses can only gawk at the flamboyant “banning” dance of the high rollers.
The dance is not for you.
No government, other than India has any plans for banning Chinese products and services. Even in India once normal relations are restored it will be business as usual. You will find Indians queueing to buy Chinese 5g phones.
Gwydion Madawc Williams
It’s only a few governments for a few products and it may not matter much.
And US influence is weakening.
India is a very large market for Chinese goods and reduction in purchases of Chinese products will certainly hurt china. Startups have raised money from Chinese companies because they must have offered better valuations. There are substitutes available for funding startups. So many American Japanese venture capital firms can be tapped for funding.
As long as management control is in Indian hands, there is no issue.
To further buttress this point, look at even traditional companies like HDFC, icici bank etc. Foreigners own nearly 70% yet they are as much Indian as any other company.
Sahil Malhotra MA Economics from Indira Gandhi National Open University (2024)
Let's me first discuss about the impact which both countries will be facing whether India or China. Though the amount of impact would be more for India as Indian Markets are conquered by Chinese products/companies.
Now when it comes to Boycotting, India simply can't boycott Chinese products for two main reasons :
* It is a member of WTO.
* Huge amount of investment of Chinese companies in Indian companies.
But what can be done is stop being dependent on Chinese products by looking for an alternative. Govt. on the other hand can help Domestic industries to grow using different schemes/campaigns like “Make in India”. This will surely make domestic countries to help compete cheap n advanced Chinese products.
Though the process will take time but it will gradually reduce the share of Chinese products in Indian market.
Nothing is impossible. We just need a right approach to make India “Atmanirbhar”. Boycotting isn't the main aim of the campaign. The main reason is to help Domestic industries grow.
We can take reference from Japanese, they didn't simply boycott American products, Japan did something better, it imported raw materials from USA, converted them into high end finished goods and exported them all the world over.
This way India could reduce its dependency on Chinese products.
Hope it's helpful !! ✌️
Not exactly, India exports are nearly 1.5 lakhs crs, imports are 5 lakhs crs.
Now startups proved potentiality, means now anybody can invest Indians or other than PRC.
The above mentioned startups are not essential, Indian citizens independently can manage, also other option. Some other crucial equipments machinery, farma raw materials, some engineering items should have develop on war foot basis.
If you look at the past exposure to outside contribution, the picture does not reflect real capability of Indians. Look at the ground work done in recent years, and the picture will unfold with total difference. The initiatives from all angles, not only from apps or delivery modes or transportation; will bring out results sooner than later as far as our own self-reliance is concerned. India will be the go-to country for many countries, who matter.
SMEA Analytics MSME Expert at Veteran Social Entrepreneur (2015-present)
nowhere our political system and chief economic advisor has said to boycott Chinese products. even yesterday finance minister said that we import Ganesha idol. we as an Indian has to develop a mindset to become the lowest-cost manufacturing and ook to the world as a market.
yes, Chinese investment is there in Payt and ola but new startups that are growing can look for further investment from other sources.
没错，中国是有投资 Payt 和 Ola，但正在成长的初创公司可以寻求其他渠道的进一步投资。
Truth be told - We cannot affect the Chinese economy. But we can do whatever it is to give them a befitting reply
That befitting reply may not hurt them. That is a separate story
We are not saying India will affect Chinese economy. All we are saying is reduce the dependance on Chinese products & start growing indigenous products.
We are now scrutinising the VC investments coming into the country to ensure we don’t end up in the same state in future.
So we should personally take a step not to use such apps . One side indian government don’t want to take the responsibility of encouraging such apps and other side they want to boycott their product . We as a citizen should use other optional apps for communication and Paytm .
Santhakumar V Professor at Azim Premji University, Bengaluru (2011-present)
I think India should build on its own strengths (and address its limitations) rather than wasting energy on possibly unsuccessful agendas like banning Chinese products or investments.
Right now China definitely has the upper hand. India will have to work very hard to change the current situation.
Rameshupadhya Rameshupadhya Self Employed at Krsna Electronicals
If the financial climate improves in India , all the sponsors will migrate to India . As shrewd men - it's business both first and last.
The reason is simple: Chinese armed forces are many times powerful than India’s, so we cannot get rid of Chinese investment and products.
If we make our armed forces stronger than Chinese, we can reduce and abstain from increasing domination of China. But then the British-US based MNCs would take-over our economy. And if we want to save ourselves from the US-UK too, we must make our armed forces strong as much as that of the armed forces of the US.
In this answer, I’ve explained how China is dominating India.
(0) Why Chinese domination is increasing?
A] China has a base to produce technological products at very large scale, because of that they manufacture those things that India cannot manufacture. And that’s why we have to buy those things from China. If India wants to get rid of Chinese products then we will have to publish those laws in Gazette which will increase the production of indigenous items.American - British companies produce high-quality products which are very costly for India’s middle-class population. That’s why we are getting dependent on China for cheap items. Either you manufacture it or buy it from China. No other way! And a boycott of Made in China products is such a rubbishy way that I never waste my time discussing such things.
B] But the production of technical products only cannot make us get rid of Chinese products. For that, our armed forces must have the potential to its Chinese counterpart. This means, if we want to stop Chinese mobile phones then only making better mobile phones than China won’t work at all. For that, we will have to produce better fighter jets than China. When we will make better fighter jets than China only then Chinese mobile phones will stop crossing the border. Otherwise not!
Due to the weaknesses of India’s armed forces, China pressurized India to publish those laws in the Gazette which would increase Chinese domination in India’s economy. And this kinda pressure is exerted by armed forces. There is no diplomacy in international affairs or one can say that this way international affairs work. All diplomacy happens in straight words.
According to WTO if you are willing to export you must keep your Imports open.
We must think differently, let's do what we are best at India is known for Software export so let's focus on our core competencies.
Manufacturing also leads to other problems like pollution and regulatory issues. Let's say you wish to set up a furniture manufacturing unit in India. You need to plant more trees and cut them. This kind of issue applies to almost every industry.
Rohan lives in India (1999-present)
Truthfully our trade relations with China are pretty strong, contrary to what the govt would make you believe.
If we really had to ban these investments, it should start from the top, but that would jeopardize our economy and inflation would be even higher than it is now.
Inability to find reliable substitutes coupled with unreliability of time in local manufacturing are primary culprits. .
If I need to order 20 lakhs shoes in India, I will have to go through 400 different units and in China, I can get it done via just 1 unit.