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India-China Tensions, Center’s New Trade Rules

India has put restrictions on traders from nations sharing approach grounds of defence and national security. The move is predicted to affect Chinese firms and is in line with the economic retaliation following the June 15 clash with Chinese troops in Ladakh that led to fatalities.

There are reports that the Chinese troops are yet to maneuver out of some parts in Ladakh despite an agreement that each side would attend their permanent locations to defuse tension within the area.
A statement from the govt said bidders from a nation sharing land border with India are going to be eligible to bid in any procurement “only if they’re registered with the Competent Authority”.

“The Competent Authority for registration are going to be the Registration Committee constituted by the Department for Promotion of Industry and Internal Trade (DPIIT). Political and security clearance from the Ministries of External and residential Affairs respectively are going to be mandatory,” the statement read.

The order will apply to any procurement — goods or services (including consultancy services and non-consultancy services) or works (including turnkey projects), the govt said.

Exceptions have made in limited cases — including procurement of medical supplies for containment of COVID-19 global pandemic till New Year’s Eve .

“By a separate Order, countries to which Government of India extends lines of credit or provides development assistance are exempted from the need of prior registration,” the govt said.

Following the June 15 clash at Ladakh’s Galwan Valley, during which 20 soldiers died within the line of duty, a call to boycott Chinese goods by the all-India traders’ body — the Confederation of All India Traders or CAIT.

Soon after, the govt made the mention of the “Country of Origin” mandatory for sellers listing their products within the Government e-Marketplace. Late in June, the govt blocked a series of apps with Chinese links that included the hugely popular TikTok and UC Browser.

Earlier this month, China and India started the disengagement process, pulling back troops from the road of Actual Control, the de facto border between the 2 nations.

Earlier this month, China and India started the disengagement process in Ladakh.

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