Maharashtra government freezes three deals with China worth ₹5000 crore: Report

Hemani Sheth Mumbai | Updated on June 22, 2020

The Maharashtra government has put three MOUs with Chinese companies on hold amid the rising border tensions between the two countries according to media reports.

The Maharashtra government has put three Chinese deals worth ₹5000 crore on hold, The Times of India reported.

The agreement also included a ₹3,770-crore deal for setting up an automobile plant in Pune with Great Wall Motors, as per the report.

The MOUs were signed as part of the recent ' Magnetic Maharashtra 2.0' held last Monday. It was also attended by the Chinese ambassador Sun Weidong.

The investor meet was held prior to the clashes between the armed forces of India and China at Ladakh’s Galwan Valley which had led to the death of 20 Indian soldiers leading to a rise in anti-China sentiments.

The MoUs were signed by the State government hours before the clash between Indian and Chinese troops at the Galwan Valley.

The decision has been taken after consulting with the Union government. The government has advised against signing any further agreements with Chinese companies currently as per the report.

Anti-China sentiments are on the rise in light of the ongoing border tensions. According to previous reports, the Union Government is likely to impose trade barriers and increased duties on Chinese products. India is preparing a list of imported items from China, for which it could likely impose trade barriers such as higher customs tariffs, stringent standards and licence requirements as retaliation per previous reports.

These items could include Active pharmaceutical ingredients (APIs), industrial chemicals, telecom equipment, leather goods, steel items, gems and jewellery, furniture, hardware and textiles as suggested to the Commerce and Industry Ministry, the report said.

Published on June 22, 2020

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