India May Soon See An Influx Of Chinese Investments – Here’s Why

In early 2018, the United States enacted a tariff to the tune of 30 percent on all solar panels imported by domestic buyers. While the tariff didn’t target any country in particular, Chinese government and business officials, with China is the world’s largest manufacturer of solar panels, felt that the tariff was targeted specifically at the country due to United States President Donald Trump voicing concerns of unfair trade relations between the two countries at the United States’ expense over the prior two years.

An uptick in U.S. government regulation is looming on the horizon

Although no major developments in the trade war between the two countries have come about in recent months, many Chinese officials and businesspeople feel that government intervention from the United States on Chinese investments in American interests could soon become more prevalent.

Without being able to invest in the United States, Chinese investors will want to place their money somewhere.Although a variety of countries’ interests would certainly benefit from the potential upcoming increase in regulation by United States government agencies involved in overseeing international trade and investment, India would likely benefit more than most others, if not all other nations.

Here’s what this leading Chinese business executive has to say

The Xioami Corporation, most often branded as and referred to as Xiaomi, is a manufacturer and designer of consumer electronics, including mobile apps, smartphones, operating systems, and laptops. Since the initial release of the company’s first entry into the smartphone market in 2011, Xiaomi has grown to possess the largest market share of China’s smartphone industry, a feat that the company has managed to maintain since 2014.

Lei Jun, the exclusive founder, Chairman, and Chief Executive Officer of Xioami, recently shared a few of his thoughts about the current regulatory environment regarding foreign investments into the United States and the potential changes in oversight that the United States government could soon enact related to foreign investments.

The history of the trade war between the United States and China

Although trade relations between the two international superpowers first took a dip in Jan. 2018, the first United States tariffs pointed directly at Chinese commerce showed their faces on March 22, 2018. It was on this date when the United States passed legislation that would require United States buyers of Chinese exports in the range of some $50 billion.

As of Sept. 2018, the United States held active tariffs against Chinese goods worth about $250 billion, whereas China only held tariffs against U.S. exports to the tune of $110 billion.

China recently laid out new tariffs against the United States

China’s finance ministry shared with Reuters just a few days ago that it would be raising the total dollar value of current tariffs against the United States by a factor of roughly $90 billion to a total of some $200 billion.

These tariffs will be placed into effect in slightly longer than two weeks, on June 1, 2019.

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