Updated April 20th, 2020 at 13:59 IST

China complains; says India's new FDI norms violate WTO principles & liberalisation trend

India's new FDI norms for investors from specific countries violate WTO's principle of non-discrimination, the Chinese Embassy said in a statement on Monday.

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India's new FDI norms for investors from specific countries violate WTO's principle of non-discrimination, the Chinese Embassy said in a statement on Monday. It added that India's new FDI norms go against the general trend of liberalisation and facilitation of trade and investment.

The official said the new policy introducing "additional barriers" was also against the consensus arrived at the G20 grouping to realize a free, fair, non-discriminatory and transparent environment for investment.

"The additional barriers set by Indian side for investors from specific countries violate WTO's principle of non-discrimination, and go against the general trend of liberalisation and facilitation of trade and investment," Chinese embassy spokesperson Ji Rong said in a statement.

This comes after India amended its foreign direct investment (FDI) policy to prevent the hostile takeover of stressed firms amid the COVID-19 pandemic via the automatic FDI route.

Earlier, China seemingly responding to India's move had said that it has done nothing but act as a 'responsible country' and has proven its international cooperation. Chinese Ambassador to India Sun Weidong in a series of tweets said that China had been the first to alert the world regarding the pandemic and that it had helped become the 'world's factory' by decreasing the strain on global medical supplies. He stated that at a time like this 'cooperation' was needed instead of 'scapegoating'.

President #XiJinping published an article entitled "Solidarity and Cooperation are the Most Powerful Weapons for the International Community to Defeat #COVID19". He calls on int'l community to strengthen confidence, act with unity & work together. https://t.co/g6wzz1jXdB (1/6)
— Sun Weidong (@China_Amb_India)

Viruses respect no borders and epidemics do not distinguish between race. The only way to defeat them is through concerted efforts of all. This global public health crisis has driven home the urgency and importance of building a community with a shared future for mankind. (2/6)
— Sun Weidong (@China_Amb_India)

#Chinese govt has acted in an open, transparent & responsible manner, actively engaged in int'l cooperation to jointly meet the common threat and challenge. We are resolved to protect the lives & health of the Chinese & other people across the world. (3/6)
— Sun Weidong (@China_Amb_India)

True friendship could stand the test of adversity. #China appreciates the valuable understanding & support from the int'l community at the most difficult moment, and has been supporting the global response to #COVID19 as its ability permits. (4/6)
— Sun Weidong (@China_Amb_India)

To safeguard public health security, efforts should be made on: resolutely fight an all-out global war against the outbreak; forge a collective response at the int'l level; support int'l orgs in playing active roles; strengthen macroeconomic policy coordination. (5/6)
— Sun Weidong (@China_Amb_India)

#China's response to the outbreak is swift, decisive and effective. It has made enormous sacrifice in battling the virus. This represents not only China's commitment to the safety and health of its own people but also a contribution to the cause of global public health. (6/6)
— Sun Weidong (@China_Amb_India)

India amends its FDI policy

In massive development, the Centre on Saturday, amended the Foreign Direct Investment (FDI) policy to ensure no hostile takeover of firms facing stress due to ongoing COVID-19 lockdown. According to the amendment, neighbouring countries - including China, Nepal, Bangladesh, Pakistan will require government approval for investing into Indian companies. Centre has also prohibited Pakistan from investing in Indian sectors of defence, space, atomic energy and sectors/activities prohibited for foreign investment. Apart from India, EU, US, Australia have checked Chinese FDI amid COVID-19 crisis. China's People's Development Bank had just last week picked up an over 1% stake in India's largest private lender HDFC bank.