Unstable foreign direct investment (FDI) and uneven regulation in India are both continuing problems for multinational companies.
From banning e-commerce companies from selling non-essentials to adjusting foreign direct investment regulations to prohibit less regulated capital from neighboring countries from entering India, there are concerns that India has used the epidemic to build a protective wall around itself.
In a speech to the country recently, Indian Prime Minister Modi proposed to speak for “local voices.” The new stimulus package raises the threshold for foreign companies to bid for Indian contracts.
The President of the American-Indian Chamber of Commerce Ms. Biswar said, “The more stable the regulations in India, the greater the chance of persuading more multinational companies to open bases in India.”
So, if multinational companies do not choose India, who will they choose?
Jake Bu believes that now, Vietnam, Bangladesh, South Korea and Taiwan all benefit after the new crown epidemic affects China. South Korea and Taiwan are high-end technologies, while Vietnam and Bangladesh are low-end areas.
Due to increased labor and environmental costs in China, multinational companies began to relocate production lines from China to these places about 10 years ago. In recent years, China-US trade tensions have accelerated the originally slow migration.
According to statistics from the Hong Kong South China Morning Post, since June 2018, a month before the start of the Sino-US trade war, U.S. imports from Vietnam have surged by more than 50%, and imports from Taiwan have also increased by 30% .
The sales model of x-ray machine adopts the above-mentioned model and goes further and further.