SOURCE / GT VOICE
GT Voice: Apart from talent, what else does China-India trade need?
Published: Jul 07, 2024 10:43 PM
India Illustration: Liu Rui/GT

India Illustration: Liu Rui/GT


The Indian government is considering granting visas to Chinese workers for some strategic sectors to address the skill gap, boost domestic manufacturing, and drive technological advancement, VOA Chinese reported on Saturday.

There is no denying that India's willingness to ease its visa restrictions for Chinese workers is a positive development for economic exchanges between China and India. This potential policy adjustment is expected to alleviate some of the challenges faced by India-based global manufacturers that rely on Chinese engineers and technicians to help install or operate their plants, only to see Chinese workers struggling to obtain Indian visas.

Nevertheless, in order to fully advance mutually beneficial cooperation between the two countries, a range of issues, such as investment restrictions, must be resolved. China's skilled workers are of great value to India's economic development, as they can offer advanced technology and management expertise, which is conducive to the upgrading of local industries. Yet, for India to make full use of the potential of Chinese talent, it must demonstrate greater policy openness, particularly in terms of restrictions on Chinese investment.

For years, India has long been seen as a promising destination for foreign investment, with its large and growing consumer market, strategic location, and relatively low labor costs. However, its skills gap has become one major obstacle that has hindered the country's ability to attract more foreign investment from other countries. It is no secret that India has a great demand for skilled Chinese workers, a clear indication of the challenges the country faces in advancing its manufacturing and economic growth. 

For instance, last year, in an effort to improve production and ready the plant to manufacture Apple's upcoming flagship iPhone 15, Foxconn dispatched more Chinese workers to its iPhone plant in Sunguvarchatram, according to media reports.

The presence of Chinese workers in Indian factories not only underscores the skills gap but also highlights the competitiveness and appeal of Chinese skilled workers. China's technical talents, particularly in fields such as information technology, manufacturing, and infrastructure construction, offer valuable expertise and practical experience that can greatly benefit India. These skilled workers not only bring advanced technology and management practices, but also help elevate the skills of Indian workers through knowledge sharing and technology transfer, ultimately accelerating the modernization of India's manufacturing sector.

In this sense, more convenient talent flow will be an important aspect of promoting exchanges and cooperation between China and India. However, the challenges between the two countries extend beyond visa issues to encompass market access and investment restrictions. India must not pick topics for discussion based solely on its own interests, but rather address issues like visas, market openness, and investment protection together.

It has been some time since India erected several obstacles to Chinese investment in its market, impeding economic cooperation and damaging India's reputation as a destination for foreign investment. But the complementarity and reciprocity of China-India economic and trade cooperation cannot be overshadowed by discriminatory practices. The recent growth in bilateral trade also reflects the real development needs of both countries. Only by improving its business environment and ensuring fair, transparent, and non-discriminatory treatment of Chinese companies can India further enhance its ability to attract foreign investment and achieve manufacturing advancement.

In addition, as bilateral trade between the two countries deepens, more Chinese workers may come to India. Ensuring and protecting their legitimate rights and interests also requires the common efforts of both China and India.