India Tightens Controls on Chinese Imports and Visas Amid Quality and Compliance Concerns
Indian intelligence and financial investigating agencies have uncovered significant misuse of the e-visa scheme prior to 2020. National security planners in New Delhi have identified numerous irregularities in the operations of Chinese companies and the import of Chinese products into India. These issues include improper documentation for visas, tax evasion, and bypassing scrutiny by the Ministry of Home Affairs (MHA), according to sources familiar with the situation.
Indian intelligence and financial investigating agencies have discovered extensive misuse of the e-visa scheme prior to 2020. Some Chinese nationals overstayed in India without mandatory visa renewals and traveled to border states and Union Territories such as Arunachal Pradesh and Jammu & Kashmir. Officials from three ministries involved in the matter, who spoke on condition of anonymity, revealed that the current visa regime is also being exploited by some Chinese companies through mis-declaring visa categories. For example, some Chinese firms applied for business visas for the installation and commissioning of industrial units, which actually requires an employment visa.
Quality Control Measures and Visa Regulations
Officials have expressed concern about the impact of importing billions of dollars worth of furniture, lighting, fixtures, and sanitaryware annually from China on the local industry. This mirrors the situation where Chinese telecom companies flooded the Indian market, hampering domestic phone manufacturers. A troubling pattern observed is that some Chinese firms are claiming “Make in India” benefits to establish units in India while importing or sourcing up to 80% of parts for these units from China.
This issue extends to some Chinese firms that have been operating in India for nearly two decades. The officials requested that these firms not be named until formal complaints are registered and action is initiated against them.
Impact on Local Industry and Import Patterns
There have also been quality concerns regarding Chinese products, which are often cheaper than Indian products but of inferior quality. During the Modi government, following the Galwan clash in June 2020, the Union commerce ministry began issuing quality control orders (QCOs) to set benchmarks and implement standards.
In 2018, 47,000 business visas were issued to Chinese companies, and the number of e-visas during the same period was 150,000. In 2019, the number of business visas issued to Chinese nationals was about 19,000, but the number of e-visas jumped to 200,000. Post the Covid pandemic, the Union government significantly reduced the issuance of visas, with only 2,500 business visas and another 3,000 e-visas given to Chinese companies and workers in 2023-24.
