CHINESE ARROGANCE & BRUTALITY MUST BE TACKLED STRATEGICALLY & IN COORDINATION WITH OTHER SUPERPOWERS
>>By: Dr. Arindam Chaudhuri for IIPM Think Tank<<
Chinese calculated inhuman brutality must be given a fitting reply. And while it's outright stupid and irrational to ask Indians to throw away their Chinese products bought with their hard earned money, and equally brainless to stop eating Chinese food made in Indian restaurants; It's most important to look into a future without dependence on China & Chinese investments. No one should be allowed to kill Indian soldiers in such a pre-planned and brutal manner.
While what we have today can't be thrown, as an economy and a government we can definitely decide to NOT ALLOW Chinese products & investments any access to Indian markets in future.
This can be done through a planned policy of DECOUPLING with China in coordination with America and a few other European nations along with nationalizing of Chinese shares in Indian companies.
If we really need to make sure that Chinese investments don't take over our assets then the current measures won't help at all. Any investor would know countries like China and its Fortune 500 companies such as Alibaba and the likes invest globally through multiple level trusts incorporated in regions like the Cayman Islands. It is almost impossible for the Indian government to even have a whiff of what's going to happen. Even the SEBI Takeover Code (that prohibits any kind of an undisclosed share purchase of a publicly listed company by any private body, domestic or foreign, beyond 5% each financial year) can be easily gamed by bringing in multiple investment firms that quickly each lap up 5% and take over the target company.
Just as an example. HSBC India is owned by HSBC Group in London, which has a significant investment from Fisher Management registered in Washington (which has its investments into Alibaba, Taiwan Semiconductor Company, Alphabet etc routed through various entities in Cayman). I believe HSBC is fully owned by the Chinese government. Look at the amount of money and the number of Mutual Funds they operate in India (https://www.moneycontrol.com/.../amc_sch_listing.php...). How can anyone control those investments? So what the government has done is a good beginning.
Now that Trump has openly said America has been attacked, I believe many countries will soon evoke an enemy country act and maybe nationalise everything that's directly or indirectly linked to China. And if say Europe, US and India were to do it together then most likely all their investments would be revealed and ruined.
The Chinese have been through the entire 2019-20 accumulating gold reserves, perhaps anticipating - like Russia under Putin did long back - that keeping money stored in dollars is not that safe after all. So the sale of gold to China must also be regulated simultaneously.
All in all, one needs to do much more in that front too. And yes not just stop China from buying up our companies cheap, maybe even global giants from other countries also from doing the same.
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