India shot back at China in HDFC investment issue

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It is known that the shares of various banks all over the world saw a dip due to Covid-19. In this situation, People’s Bank of China bought over 1.75 Crore shares of Indian private bank HDFC and this turned into a sensation. With this transaction, People’s Bank of China’s stake raised from 0.8% to 1.01% in HDFC.

Indian Government found it to be a threat as China is using the Covid-19 crisis to purchase more assets in India to gain dominance in the country. There is a chance for China to control Indian organizations in future due to these moves. To put a check at China’s moves, India passed a new rule that any country sharing the boundary with India should get Government’s approval before investing in any entity owned by Indian citizen or is situated in India.

The rule applies to China, Pakistan, Bangladesh, Nepal, Myanmar, Afghanistan, etc. Among all these nations, India’s focus is to restrict China’s investments in India. This moves helps the nation to safeguard its future.

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