China India Photo:CFP

Chinese observers and an India-based business representative on Thursday urged India to optimize the business environment and change its wrong perception toward China. The comments came after India's reported approval of some investment proposals by Chinese enterprises in the electronics manufacturing sector.  

An inter-ministerial panel has approved investment proposals in the electronics manufacturing sector, including some from Chinese companies such as Luxshare and a joint venture between Bhagwati Products (Micromax) and Huaqin Technology, the Economic Times reported.

The development is significant as these were among the first such approvals in recent times, given border tensions and the scrutiny that investments from China have been going through in India, per the report. It noted that "the panel is cautiously opening up to Chinese investment, ensuring local value addition and strict safeguards."

Observers noted that more efforts and practical actions are needed from the Indian side if it aims to regain the trust and cooperation potential from Chinese businesses. 

India's suppression targeting Chinese enterprises as well as visa restrictions on Chinese technicians have blocked the development of its manufacturing, with losses exceeding tens of billions of dollars. The Indian government is taking moves to correct these previous actions, and it aims to utilize Chinese investment and technical personnel to bolster the local manufacturing sector, Liu Zongyi, director of the Center for South Asia Studies at the Shanghai Institutes for International Studies, told the Global Times on Thursday.

China and India have cooperation advantages in both traditional and emerging manufacturing with complementary structures, and India's market potential and relatively low labor costs remain appealing for Chinese investment, said Qian Feng, director of the research department at the National Strategy Institute at Tsinghua University.  

However, India has not taken any action to improve the business environment for Chinese enterprises, which still face an "unfair, unjust, discriminatory business environment," as the relatively high investment risks for Chinese firms persist, an India-based business representative told the Global Times on Thursday on condition of anonymity, adding that Chinese firms remain cautious about operating in India. 

The business representative stressed the importance for India to resolve unreasonable and discriminatory policies in areas such as investment, operations and bidding that target Chinese enterprises, noting that Chinese firms should enjoy the same treatment as other foreign investors.

Liu and Qian said that India should correct its wrong and hostile perception of China if the country aims to further attract Chinese investment. 

India should implement the concept that "China and India should not be a threat to each other, but an opportunity for each other's development," with actual actions to attract Chinese investment and enhance bilateral business cooperation, Qian told the Global Times on Thursday. 

Earlier in August, India put in place a portal to facilitate business visas for Chinese technicians, whose expertise is required in Indian manufacturing firms in sectors that are covered under the Production Linked Incentive programs.