India's new FDI norms violate WTO principles of free trade: Chinese Embassy
Official said new policy introducing "additional barriers" was also against the consensus arrived at the G20 grouping
New Delhi: India's new norms for foreign direct investment from specific countries violate the WTO's principle of non-discrimination and are against the general trend of free trade, a Chinese embassy spokesperson said on Monday.
The official said the new policy introducing "additional barriers" was also against the consensus arrived at the G20 grouping to realize a free, fair, non-discriminatory and transparent environment for investment.
Last week, India made grant of prior approval mandatory for foreign investments from countries that share land border with India to curb "opportunistic takeovers" of domestic firms following the coronavirus pandemic.
"The additional barriers set by Indian side for investors from specific countries violate WTO's principle of non-discrimination, and go against the general trend of liberalisation and facilitation of trade and investment," Chinese embassy spokesperson Ji Rong said in a statement.
"Chinese enterprises actively made donations to help India fight COVID-19 epidemic," it said adding that where companies choose to invest and operate depends on the country's economic fundamentals and business environment.
"Facing the economic downturn caused by COVID-19, countries should work together to create a favourable investment environment to speed up the resumption of companies' production and operation."