An increase in the concern of American companies with Chinese raw materials

New delhi date. 26 June 2020, Friday

The tensions between India and China over the Galwan chapter have led to delays in customs clearance of raw materials from China at its Indian ports, leaving US companies stranded.

Rising tensions on the LAC (Line of Actual Control) by China, on the other hand, have created a climate of strong opposition in India to the consumption of Chinese and Chinese goods. At the same time, clearance of raw materials from China at ports has also stalled.

However, no reason has been given by the customs department for non-clearance of raw materials from China. Thus, various raw materials from China have been rocked at the ports.

This adversity has put American companies in India in trouble.

Raw goods from China have been stuck, especially at the ports of Mumbai and Chennai. Concerns among American companies have been heightened as raw materials get stuck. The raw materials of American companies operating in India also come to India from China, which is facing many hurdles as they get stuck on the Badro. In this regard, the Customs Department has indicated that there may be a slight delay in clearing raw materials from China at some of the country's ports, especially Chennai and Mumbai ports. But the customs department gave no reason for this. So that confusion has increased.

The issue has been taken up with the Ministry of Commerce by the US-India Strategic Partnership. American companies manufacturing in India are represented by this organization.

Raw materials for American companies also come from China. Therefore, the work of clearance should be started.

About 50 American companies manufacture in India. Some of the telecom companies are also manufacturing in India, these companies order raw materials from China.

The organization said the issue would have an impact on foreign investment as well as fears of adverse impact on the production of American companies in India.