7 Chinese companies, including Huawei, Alibaba, may face action in India for having links with PLA

New Delhi: Chinese global giants like Huawei, Alibaba and others having a direct or indirect link with the Chinese Army and could soon face action in India. These companies are among 7 Chinese companies which the government sources claim having deep links with the People's Liberation Army (PLA). 

The 7 Chinese companies under the scanner are Xindia Steels, Xinxing Cathay international, China electronic technology group, Huawei, Alibaba, Tencent, SAIC motor corporation. Government sources say that "these companies are under watch and could face potential action".

Chinese telecom company Huawei reported a revenue of Rs 12800 crore in FY 2018-19 from its Indian operators. The company founded by Ren Zhengfei, who was former deputy director at the PLA’s engineering corps, is facing global issues on 5G with countries like US, Japan, UK, Australia acting on it in various ways.

Alibaba, Baidu, Tencent sources highlighted are part of China's military-civil fusion and artificial intelligence projects. Sources pointing to the 2019 report of US-China economic and security review commission said, ‘’under China's military-civil fusion policy, government-supported mechanisms, including venture capital (VC) funds...(are used for) leveraging the fruits of civilian innovation for China’s defence sector.” 

Alibaba has made investment in Indian start-ups including popular ones like PayTM, Zomato, Big basket, Snapdeal, Xpressbees. Tencent has made mega investments in Indian tech space including $400 million in Ola cabs, $700 million in Flipkart.

But it is just not only tech or mobile sector where Chinese companies with links with the Chinese Army are active. SAIC Motor Corporation, a Chinese state-owned automobile company headquartered in Shanghai, sells Sport utility vehicle MG Hector in India. One of the company's subsidiary is Nanjing Automobile, which was previously a vehicle servicing unit of PLA.

Xinxing Cathay International Group, a metal products manufacturing country, is present in India in various forms including a Joint Venture Xindia Steels Ltd.  Employees of China Electronics Technology Group Corporation (CETC) have been convicted of military espionage and it provides technology which is believed to be used for human rights abuses in the restive western province of Xinjiang in China. The company has invested Rs 320 crores in a manufacturing facility in Andhra Pradesh in 2018.

This comes even as India last month banned 59 Chinese apps, including popular TikTok app, after a violent face-off at Line Of Actual Control in Eastern Ladakh in which 20 Indian soldiers died. Chinese forces also suffered casualties but haven't come out with a number.