New Delhi: Confederation of All India Traders (CAIT), soft to the ruling NDA at the Centre has asked the Modi Government to probe those companies including having investment from China. CAIT on Sunday today sent a communication to Union Commerce Minister Shri Piyush Goyal saying that the Chinese investment pattern reflects the fact that these investments of Chinese companies in Indian Start-ups is a strategic move of China to command Indian innovations & technology and other vital sectors in a very clandestine manner and urge Shri Goyal to direct an investigation in all such Indian Companies who have Chinese stake.
The traders’ body has presented a list of over 141 companies including popular start-ups like like Bijus and Paytm having sizable investments from corporate firms from China.
The CAIT submitted a list of 141 prominent Indian Start-ups which have significant Chinese investments. These Indian companies relate to Hospitality, Daily consumables, Food delivery, Information Technology, Logistics, Payment applications, e-commerce, travel, transport, Pharmaceuticals,Insurance, Share market,Health care, Eye Care, Play Applications etc. From this list of diverse fields, we believe that the Chinese Companies have tried to tap all important sectors of the economy and further which has significant data of cross sections of the people of India-said the CAIT.
CAIT National President Mr. B.C.Bhartia & Secretary General Mr. Praveen Khandelwal while demanding for a probe said that such investigation may include the most pertinent question including how much is the Chinese investment control ratio in such Indian Companies, the data accrued by these Companies is landed in India or abroad , what are the security & safety precautions used in storing data, Whether any Indian start-ups is using Chinese technology and if so up to what extent and Whether any such Chinese technology has any in-built spying technology.
Mr. Bhartia & Mr. Khandelwal said that it is a well known fact China is engaged in espionage overseas, directed through diverse methods as well as their numerous frontal methods. It employs a variety of tactics including cyber spying to gain access to sensitive information remotely, signal intelligence. China is also engaged in financial and Industrial espionage aimed at gathering information to bolster its economy, as well as monitoring dissidence abroad.Several cases of computer intrusions suspected of Chinese involvement have been found in various countries including Australia, New Zealand, Canada, France, Germany, USA etc. The information in public domain cites that China is pioneered in adopting an expansive approach to stealing innovation through a wide range of methods including not just Chinese intelligence services but state-owned enterprises, ostensibly private companies, certain kinds of graduate students and researchers, and a variety of other persons all working on their behalf. It is also said that Chinese are not just targeting innovation and R&D but they are also going after cost and pricing information, internal strategy documents, anything that can give them a competitive advantage by making investments.
Both Mr. Bhartia & Mr. Khandelwal said that under the current situation between India and China or otherwise, the above questions assume much significance and the above questions are pertinent to understand the real truth behind such investments in different sectors. It looks like a planned strategy by various Chinese Companies to acquire vital data of Indian people and an exercise in direction to dominate various Indian economic centers by virtue of their investments. Therefore, an immediate direction for an in-depth investigation into the working and business module of Indian start-ups covering the above mentioned concerns is all the more necessary. They also suggested that any Chinese investment in any Indian venture should be brought in public domain and investments in such Companies may also be investigated.” It is also suggested that any future overseas investment should be through Government route and not through automatic route”-said Mr. Bhartia & Mr. Khandelwal.