Shein, Luxshare, Huaqin..why are Chinese cos returning to India?

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The Economic Times Podcasts

The Economic Times Podcasts

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@LundboerKe-larai-d6u
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Many factors r in play here - 1stly BJP NDA alliance partners could have demanded this for support , this BJP 3.0 governs by NDA majority unlike 2.0 with clear outright majority. Ambani retail could also need to expand in order to grow this brings in the question of protectionism which if it is as we understand it to be local eco systems will be manufacturing for Shein India. Currently temu & Shein have very suspect labour practices ( China has no labour laws & unions so slaves r used !) also the product quality is terrible ! The sizes r all wrong from shoes to body sizes including underwear because Chinese PPL have very different body shapes to most of us outside china.if reliance does ensure local eco systems r supported & feed into it then it just may work. Wrt electronics - India realizes that what PRC CCP invested will take it a long time to catch-up sure Chinese investment was & is heavily dependent on - Japan , s.korea & Taiwan & the whole quad + is not moving as fast as India wid like it to be because USA is putting the brakes on the whole non Chinese supply chain why ? Possibly because so many u.s investment funds r currently tied into China & u.s politics seems to have a short memory on what COVID did , China has yet to pay for all the damages it's bats did globally ! So will it work ? Depends if the volume of revenue is good , also remember a law was passed that enables to govt to approve of companies that originate with neighbours we share land borders with to be 1st approved - ie security concerns , tax committments etc all must be met by the foreign entity 1st b4 it can enter india.from the BJP perspective this could boost the blue collar work sector & provide employment for many - that's a good thing against the Indi axis claims. Time will tell. India is in a flux state of rapid changes its still very unsettled & volatile , economic frameworks r not properly laid out & even lawyers in the paralegal sector have a difficult time explaining laws to foreigners that wish to setup shop in India. The biggest hurdle being the centre attracts globally then state laws of govt's esp anti BJP will damage the whole deal. We saw this with electronic giants that initially hyped entering India then local partners pulled out etc. let's wait & see. Hope it works out .
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