Electronics Inc’s joint venture wait at China gate gets longer: Tech tie-ups face delays pending approval

The ongoing delays in joint ventures between Indian and Chinese electronics firms highlight the challenges posed by regulatory inconsistencies. These issues not only affect individual companies but also impede India's broader objectives for self-sufficiency in electronics production.
Electronics Inc’s joint venture wait at China gate gets longer: Tech tie-ups face delays pending approval

Key insights

  • 1

    Policy Inconsistencies: Chinese government policies are causing delays in joint ventures.

  • 2

    Impact on Self-Sufficiency: Delays hinder India's goal for local electronics manufacturing.

  • 3

    Pending Approvals: Several joint ventures await crucial government clearances.

A What happened
Indian electronics firms are facing significant delays in establishing joint ventures with Chinese companies, primarily due to inconsistent policies from the Chinese government regarding technology transfer. Executives from companies like PG Electroplast have expressed frustration, noting that they are still awaiting government approvals that were expected to be resolved months ago. Notable deals, such as PG Electroplast's collaboration with Highly Group and Hisense Group's plans to acquire a stake in Epack Durable, are stalled. The Chinese government is scrutinizing these partnerships to protect intellectual property rights and ensure that critical technology is not shared. This situation is detrimental to India's ambitions for self-sufficiency in electronics manufacturing, as many companies are reliant on these collaborations to enhance local production capabilities. The delays also reflect broader challenges in foreign direct investment regulations between India and China.

Topics

Business & Markets Economy World & Politics International Affairs

Stay ahead with OwlBrief

A daily set of high-signal briefs — what happened, why it matters, what to watch next.

Newsletter

Get OwlBrief in your inbox

A fast, high-signal digest of the day’s most important events — plus the context that makes them make sense.

A handful of briefs — before your coffee gets cold.

No spam. Unsubscribe anytime. We don’t sell your email.