The Indian Wire » Business » Ban China or Banks of China? AIIB invests in Indian Health Industry, Vivo sponsors IPL amid India-China tensions
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Ban China or Banks of China? AIIB invests in Indian Health Industry, Vivo sponsors IPL amid India-China tensions

MADE IN CHINA
  • India and China’s border dispute turned deadly for the first time in more than four decades amid Covid-19 pandemic.
  • India wages an economic war on China, with bans on almost everything from popular mobile apps to tenders on public projects.
  • The China-backed Asian Infrastructure Investment Bank (AIIB) functions as an “apolitical” institution and continues to health infrastructuresupport projects in India.
  • The competition between US and Chinese tech giants for the Indian market grows intensely, with access to a market of 1.4bn people spurring multibillion-dollar bets.
  • The BCCI has retained VIVO as its sponsors for IPL 2020 season despite the ‘Boycott China’ mood across India.
  • #ChinesePremierLeague started to trend on social media as the BCCI retained Chinese mobile company VIVO as their sponsor.

The BCCI holds VIVO as its sponsors for IPL 2020 season despite the ‘Boycott China’ mood across India.

IPL VIVO SPONSORThe 13th edition of Indian Premier League (IPL) will begin from September 19th, 2020 and the final will be played on November 10, 2020 in the UAE (subject to government approval). The decision was taken in an IPL GC meeting on Sunday- 2nd August, 2020. There were no discussions to review Chinese sponsorships. It was decided that Vivo will remain the title sponsors of IPL. It’s $330 million for a five-year deal up to 2022 stayed intact as there were no discussions on the subject.

 

#ChinesePremierLeague trends on Twitter after BCCI retains VIVO as the title sponsors for IPL 2020.

Twitter against vivo ipl

The Indian board has been criticised by many for not cutting off ties with VIVO and other Chinese sponsors. The sentiments on social media have been so heavy that #ChinesePremierLeague has started to trend on social media.People were disappointed by the fact that the governing body of the most popular sport in the country was playing with the sentiments of the people. They made sure that the message reached loud and clear and thus tweets came in frenzy.

 

India and China’s border dispute turned deadly for the first time in more than four decades amid Covid-19 pandemic.

The first official acknowledgment of tensions on the border came on May 10, when the Army issued a statement about clashes between Indian and Chinese patrols at two places. In Naku La in Sikkim, on May 9, a Chinese patrol on the Indian side of the LAC was confronted by an Indian patrol which led to a clash.

india-vs-china-trade-warIt emerged that Indian and Chinese soldiers had clashed in the Galwan valley in Ladakh. At least 20 Indian soldiers were killed and over a hundred injured. The clash on the night of June 16 occurred even as the two sides were working to de-escalate tensions and barely days after the Indian media declared victory in the prolonged stand-off, sparked by the Chinese troops intruding into what India considers its territory.

Frictions between the two nations have cooled somewhat since the deadly clash in previous months, with both sides having agreed to withdraw troops, although

India and China have since blocked apps from the other country over privacy and national security concerns.

India wages economic war on China, with bans on almost everything from popular mobile apps to tenders on public projects.

ByteDance’s TikTok, Tencent’s WeChat, Alibaba’s browser and Baidu map were among 59 Chinese apps banned by the Indian government in late June.INDIA BANS CHINESE APPS

Ravi Shankar Prasad, India’s information technology minister, called it “a digital strike” at a recent political rally.

Another 47 apps that are clones of those already banned were blocked in late July amid reports that over 250 more were on the chopping block, including multiplayer battle royale game PUBG Mobile and video-sharing app Zili from smartphone maker Xiaomi.

That same day, the government announced restrictions on national security grounds on bidders from China and other countries bordering India for public projects.

“This is an economic attack — they are simply doing unfair trade,” top official said. He also said Chinese companies should be excluded from Indian infrastructure projects to prevent them acquiring sensitive data in key locations. They believe that shunning Chinese products would make India more “Aatma-Nirbhar”, a Hindi term for self-reliance popularized by Hon’ Prime Minister Modi.

The China-backed Asian Infrastructure Investment Bank (AIIB) functions as an “apolitical” institution and continues to health infrastructure support projects in India.

AIIB“This vision of India – turning crisis into opportunity – is going to prove equally effective for our resolve of Aatma-Nirbhar or self-reliant India,” Modi said, as he called for more local manufacturing, particularly of medical equipment.

However, few days ago, the China-backed Asian Infrastructure Investment Bank (AIIB) was in discussion with the Indian government for financing a $8-billion scheme for improving health infrastructure at the district level to make the country better prepared for the future healthcare challenges.

The Beijing-based multilateral funding agency AIIB had earlier approved a financial assistance of $1.2 billion for India to fight the Covid-19 pandemic.

India is a founding member of the multilateral funding agency with the second highest voting share. Currently, IndiaAIIB INVESTMENT has 7.65 per cent vote share in the AIIB while China holds a whopping 26.63 per cent stake in the organisation that was set up in 2016.

“The Asian Infrastructure Investment Bank is an apolitical institution, the management will look at the proposed projects from the economic and financial point of view [rather than a political view,” said former Chinese deputy finance minister Jin on Tuesday after talks on investing in India’s Medical ecosystem.

India needs to seal the loopholes in restrictions against Chinese firms.

BAN CHINAThe Ban on the Chinese apps and boycott of Chinese imports was a remarkable move by the Government of India. However recently there has been certain hypocrisy regarding the Indo-China Financial war. With Vivo sponsoring Indian Premier League (IPL) and AIIB investing in India’s health Infrastructure, many questions arise as to what exactly is considered as a nationalist agenda.

Considering decades of relations with China it is not possible to wade it off in a couple of months. But formation of new ties and agreements must be questioned and enquired about after complete fact checking and allocation of adequate information on ant topic.

On July 23, the Government of India amended the General Financial Rules, 2017 and issued a memorandum which, with immediate effect, restricted, among others, Chinese companies or any company whose ‘beneficial owner’ is situated in a country which ‘shares a land border with India’, or is a neighbouring country, from participating in a government procurement process (GPP) involving instrumentalities of the government.CHINA INDIA

However, there is a need to seal the loopholes in restrictions against Chinese firms.

For instance, the senior managing official of an Indian bidder may not be located in China. However, a senior managing official of the Dubai-based holding company of the bidder could be located in China. In such a case, the bidder will be able to avoid the registration requirement. This interpretation defeats the purpose of the memorandum.

IPL 2020: Vivo pulls out as title sponsor but only after Public outrage.

As we report this issue, Vivo has pulled out as the title sponsor of the Indian Premier League 2020 edition, confirmed Indian media.

IPL IN UAE

On Monday, the aforementioned franchise took it upon itself to inform the others of Vivo’s impending exit given the hostility towards Chinese brands that has been around post the border skirmish between the two countries some time ago.

“Even if the Board can get a replacement at 50% of the value, it’ll be an achievement. Anything more than that will actually be a shot in the arm. Let’s hope things settle amicably. The IPL has been planned and everything’s set,” industry stakeholders were quoted as saying by the newspaper- The Times of India.

With Vivo’s exit from IPL, China’s exit from India can also be achieved to some extent in order to make India self-reliant. The main concerns lie in the hypocrisy of the Boycott China campaign. Appears like China is trying it’s best to retain its businesses in India and win the Cold Financial war. The competition between US and Chinese tech giants for the Indian market grows intensely, with access to a market of 1.4bn people spurring multibillion-dollar bets.

 

About the author

Kritika Krishnakumar

Kritika is a News Reporter and Creative Content Writer at The Indian Wire. An ambitious Student with curious nature towards learning. Also, an inspiring Teacher in the field of Accountancy, Economics, Mathematics and Commerce.

2 Comments

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  • The Author either doesn’t have sense of economics or have totally biased views .. name says all “Indian Wire” funded by Whom ??

    1, China is major stakeholder in AIIB but not represent Bank. You will not spoil relation with an organization when u don’t like his manager when you are getting benefit from it and not giving anything back.

    2. Regarding Vivo, Company already paid the money , it is in benefit of India and not losing anything..

    I know you guys are being funded to write this type of articles but increase your funding and find good minds…

    • Hi Jas, I am the sectional manager for The Author. To clarify your concerns.

      1- The Author has done independent objective research on the topic before penning it and is sufficiently qualified to write on the same owing to our rigorous selection process.
      2- The Indian wire is not funded by an interested party with respect to this article. You can read more about our owner and funding here – https://www.theindianwire.com/funding-ownership/
      3- Thanks for your input, kindly mail us at [email protected] if you are interested in raising further concerns.

      Thanks for your response, I hope I could help with your query.

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