India-China border stand-off: Illegitimate Chinese village built 4.5 Km in Indian Territory

Eight months on and the India-China order stand-off continues with reports now indicating that Chinese construction activity along the Line of Actual Control (LAC) in Arunachal Pradesh. An NDTV report said satellite images reveal that the Chinese have constructed a 100 home village inside the Indian Territory. CNBC-TV18’s Parikshit Luthra has the latest on the India-China standoff.

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 5 Minutes Read

Indian Army personnel asked to delete 89 apps including Facebook, Truecaller

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Summary

ANI cited Indian Army sources as saying that officers have been asked to uninstall dating apps such as Tinder, Couch Surfing among others like Daily Hunt and that the instructions should be followed strictly.

Indian Army personnel have been asked to delete 89 apps from their smartphones including Facebook, TikTok, Truecaller and Instagram to plug the leakage of information, according to reports. ANI cited Indian Army sources as saying that officers have been asked to uninstall dating apps such as Tinder, Couch Surfing among others like Daily Hunt and that the instructions should be followed strictly.

The news agency tweeted:

Earlier in the day, Press Trust of India reported that the Chinese military removed all temporary structures and completed withdrawal of its troops from the face-off site in Hot Springs in eastern Ladakh on Wednesday even as the Indian Army kept a close watch on the pull back and maintained a high-level of combat readiness in the region, people familiar with the developments said.

They said the two armies are expected to carry out a joint verification in the next few days to assess the implementation of the disengagement process once the dismantling of the temporary infrastructure and withdrawal of troops by China are completed at the friction points along the Line of Actual Control(LAC) in eastern Ladakh.

There has been thinning out of troops from Finger areas in Pangong Tso as well, they said. Pangong Tso has been a major face-off site between the two sides.

The two militaries are set to hold extensive talks on finalising modalities for restoring normalcy and bringing back peace and tranquillity in the region after the verification of the disengagement exercise is completed, they said.

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sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Ban on Chinese apps: Sending a strong message to ourselves

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Summary

The ban was ostensibly triggered by long-standing concerns in the Indian establishment about cybersecurity, non-transparent data collection, backdoors, and links between Chinese companies and the Communist Party of China.

In a week, 59 Chinese apps were banned by the Indian government. The objective was clearly to send a message to the Chinese government about the death of 20 Indian soldiers. Since then, most of the apps have disappeared off the app stores, their websites are no longer accessible, even with a VPN. Our news channels claim this as a definitive victory.

A cursory look at the 59 apps reveals certain categories that are particularly popular in India like video content, photo and video editing, games, browsers, utility, e-commerce, and file-sharing. Apps owned by large Chinese companies like Tencent, Alibaba, Baidu, Xiaomi, and Cheetah Mobile feature prominently on the list.

A few important trends stand out. The government banned the most popular Chinese apps. Shareit, Tiktok, Helo, Likee, Clash of Kings, and YouCamMakeup were among the top apps in India and boasted of tens of millions of users. Since many of these apps did not need literacy or were available in regional languages, they were hugely popular in India’s rural areas. On the other hand, they have also targeted browsers, utility and file-sharing apps whose data collection practices are unclear.

The ban was ostensibly triggered by long-standing concerns in the Indian establishment about cybersecurity, non-transparent data collection, backdoors, and links between Chinese companies and the Communist Party of China. These are all concerns that the Indian government is right to worry about and Chinese companies need to address. However, did it need a ban to drive the message home?

As I have argued elsewhere, the ban will hurt India’s consumers as they need to pay more and India’s tech entrepreneurs who need investment in their products. Chinese companies have accounted for approximately 11 percent of investments in India’s tech startups. If they construe the ban as a signal to quit investments in India, it will be tech companies who bear the brunt on top of the economic losses caused by the pandemic. The moves against Chinese companies do not happen in isolation either.

As India tightens customs checks on all Chinese imports, Indian exporters are fear retaliation at ports in Hong Kong and mainland China. The customs’ additional scrutiny of Chinese products also meant that international companies that have plants in India (like Apple, Foxconn, and Dell) are facing delays in receiving spare parts. At the same time, the government is also releasing new policies in the telecom space, the e-commerce space, and device manufacturing asking them to reveal their source codes—a move that will further deter foreign companies from investing in India.

Just the presence of bureaucracy in India is painful and despite its best intentions, works slowly and provides additional costs to companies. While the government is keen on building an Atmanirbhar Bharat, it may mean the undoing of the liberal reforms that have spurred India to grow over the past 3 decades and also nullify the excellent work done in the past five years on the ease of doing business

In a recent article for the Print, Snehesh Alex Philips notes, “While the Chinese propaganda is aimed at Indians, the counter-narrative by India is also aimed at Indians.” The ban of the 59 apps has been well-received in India—however, the Indian citizen ought to remember that she is not the intended audience for the ban and should keep in mind that these costs will go into her pocket.

Hamsini Hariharan is the host of the States of Anarchy podcast and is currently based in Beijing.

Click here for her other columns

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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India-China border tensions highlights: After talks, both countries reach settlement on disengagement process; Chinese troops withdraw

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Summary

With tensions continuing to simmer between India and China following the Galwan clash, here are the latest updates on the issue.

India and China on Monday seemed to be moving towards de-escalating tensions weeks after a violent hand-to-hand clash between the two militaries at the Galwan Valley on June 15 left 20 Indian soldiers dead. China’s People’s Liberation Army (PLA) has removed tents and started to withdraw its troops from the Galwan Valley as decided during high-level talks between the two militaries, government sources said on Monday.

The situation deteriorated following the Galwan Valley clashes as the two sides significantly bolstered their deployments in most areas along the LAC. On Friday, Prime Minister Narendra Modi made a surprise visit to Ladakh during which he said the era of expansionism is over and that the history is proof that “expansionists” have either lost or perished, in comments which were seen as a clear message to China that India is not going to backoff and would deal with the situation with a firm hand.

Here are the highlights related to the ongoing India-China border tensions from July 6:

India, China agree that differences should not become disputes after key phone call

The India-China border face-off appears to have reached some sort of settlement as a disengagement process has started in three of the four friction points along the LAC in Ladakh. On Sunday evening, Chinese Foreign Minister, State Councillor and Special Representative on the Sino-Indian Boundary Issue Wang Yi spoke to Indian National Security Advisor and Special Representative Ajit Doval over phone.

According to IANS, the two sides exchanged in frank and in-depth views on easing the current state of affairs at the borders and reached a positive consensus, the statement said.

  1. The two sides agree to follow the important consensus reached by the leaders of the two countries and believe that maintaining peace and tranquility in the border area is crucial to the long-term development of bilateral relations. The border issue should be placed in an appropriate position in bilateral relations to avoid the rise of differences into disputes.
  2. The two sides reaffirmed their observance of a series of agreements signed by the two countries on the border issue and worked together to ease the situation in the border areas.
  3. The two sides agreed to strengthen communication through the special representative meeting mechanism, hold non-stop meetings on the China-India Border Affairs Consultation and Coordination Working Mechanism, and constantly improve and strengthen confidence-building measures in the border area to avoid recurring incidents that affect peace and tranquility in the border area.
  4. The two sides welcome the progress made in the recent military and diplomatic meeting between the two countries and agree to continue the dialogue and consultations, and emphasize that the consensus reached at the level of the two border defence forces at the military level should be implemented as quickly as possible to complete the disengagement process of the front-line forces of both sides as soon as possible.
  • Key steps leading to disengagement

Sources have told CNBC-TV18 that a twin track approach is the one of the key steps to reduce tnesions at the border and Army and MEA are involved in negotiations. The PM’s visit sent a clear message that India is firm and committed to the disengaging process. Sources added that intensive bilateral engagement with China is culminating into special representative talks. EAM and Foreign Secretary had briefed foreign allies over the past few days of the disengaging process, which is being monitored closely.

  • NSA Ajit Doval spoke to Foreign Minister Wang Yi on July 5th with both sides agreeing to complete ongoing disengagement expeditiously. The leaders had a frank and in-depth discussion on the border situation. Both leaders agreed on the need to ensure the earliest complete disengagement at LAC. India-China agreed on the need for de-escalation for the restoration of peace. India-China to work towards a phased and stepwise de-escalation. Diplomatic and military talks to continue.
  • Chinese Army has moved back tents, vehicles & troops by 1-2 km from locations where disengagement was agreed upon at Corps Commander level talks, news agency ANI said in a tweet citing Indian Army Sources. In another twitter update, the news agency said that “Chinese heavy armoured vehicles still present in depth areas in Galwan river area. Indian army monitoring the situation with caution: Indian Army Sources.”

  • Bhutan’s foreign ministry has issued a demarche to the Chinese embassy in New Delhi, upset by China’s claims that the Sakteng Wildlife Sanctuary belongs to it, saying the sanctuary was an “integral and sovereign territory of Bhutan”. Both China and Bhutan don’t have embassies in each other’s countries and conduct their diplomatic communication through their missions in Delhi.
  • Indian soldiers who died in close combat with Chinese troops last month were unarmed and surrounded by a larger force on a steep ridge, Reuters reported quoting Indian government sources, two soldiers deployed in the area and families of the fallen men. One of the Indian soldiers had his throat slit with metal nails in the darkness, his father told Reuters, saying he had been told by a fellow soldier who was there.
  • The Indian Army is in the process of verifying whether China has started moving back troops from the flashpoints under the agreement reached between the two sides during the June 30 corps commanders’ meeting, reported Deccan Chronicle. The movement of Chinese troops from the flashpoints will show whether China is serious about disengagement and bringing down tensions at the Line of Actual Control, the report added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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PIL in SC seeks revoking of Maha govt, Adani Group MoUs with Chinese companies

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Memorandum of Understandings (MoU) signed with Chinese companies are the latest targets of the rising anti-China sentiment in the country. A Public Interest Litigation (PIL) filed in the Supreme Court has sought the cancellation of the $1 billion MoU signed by the Maharashtra state government with China’s Great Wall Motors. The same plea also targets …

Memorandum of Understandings (MoU) signed with Chinese companies are the latest targets of the rising anti-China sentiment in the country.

A Public Interest Litigation (PIL) filed in the Supreme Court has sought the cancellation of the $1 billion MoU signed by the Maharashtra state government with China’s Great Wall Motors.

The same plea also targets the $300 million MoU signed in 2017, between the Adani Group and the China’s East Hope Group for manufacturing solar power equipment in Mundra SEZ.

“The USD 300M deal in question was signed under an MoU with the China based East Hope Group in 2017, but it did not materialize,” a spokesperson for the Adani Group told CNBC-TV18.

The PIL has been filed by a 25-year-old resident of Jammu, Supriya Pandita.

The PIL has argued that doing business with Chinese when Indian soldiers were losing their lives at the border in skirmishes with that country, was against the will and sentiment of people of India.

Taking note of the recent government decision to ban 59 Chinese apps, the PIL argued that while such measures were welcome, allowing MoUs to be signed with Chinese entities sends a “wrong message” to the people of India.

The PIL argued that the “national security threat” invoked by the government to ban 59 Chinese apps should be applied uniformly, in ensuring a termination of MoUs with Chinese companies.

The PIL has alleged preferential treatment for “select businesses” and “select states” to enter into MuUs with Chinese entities and that entering into such MoUs ran contrary to Prime Minister Narendra Modi’s call for “Atmanirbhar Bharat”.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Relief for pharma firms as customs starts clearing of consignments with China origin-APIs, status quo on the rest

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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After days of delay, customs officials have begun to clear Chinese-origin consignments containing Active Pharmaceutical Ingredients (APIs) across ports.

After days of delay, customs officials have begun to clear Chinese-origin consignments containing Active Pharmaceutical Ingredients (APIs) across ports, sources in the know told CNBC-TV18.

Customs officials have now started to issue orders to clear these consignments, after pharma companies raised concerns that the delays may lead to hamper production of essential life-saving drugs. Shipments for Dr Reddy’s Labs and Aurobindo Pharma already received clearances on Tuesday.

Customs officials and other agents involved in handling China-origin cargo, including CFSes, port and airport authorities are acting on unofficial instructions to hold back these shipments for a 100 percent physical examination at the item-level, including those containers which have received an Out Of Charge Order.

However, sources say, even after being stranded for over a week, a vast majority of the containers have still not been opened up for an examination, as clearing agents cite inordinate delays and a total lack of probable clearance time-lines. These shipments will start to rack up penalties in the form of port charges, warehouse charges, ground rent and demurrages if the delays continue.

However, for the ninth day running, there are no instructions yet for clearance of other consignments. Since Monday, customs officials permitted AEO – Tier 3 complaint importers to have their shipments cleared without a full examination. However, these importers are minuscule in number and in some cases, such as Toyota Kirloskar Motor, do not have direct sourcing from China.

Sources say some bills of entry are now also getting generated at the Kolkata port, but for all other ports, the situation remain status-quo.

Most Chinese import orders are pre-paid as the country rarely ships orders on credit. Add to that the penalties on delays that importers will have to pay shipping lines and Container Freight Stations (CFSes), if these are not explicitly waived off by a government order.

Container Freight Stations and shipping lines are privately operated.
Industry bodies have highlighted that prolonged delays will hamper production by affecting the supply chain.

“We fear that if the supply chain is broken, then there will be severe shortage of essential communication, equipment required for health, work-from-home and online education goods such as smartphones, tablets and laptops since alternative supplies are not available in the local and global markets amidst the COVID-19 outbreak,” electronics body ICMEA said in its letter to the finance ministry and customs authority.

ICMEA said that opening finished products could lead to their getting soiled and becoming unfit for sale.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

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index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Importers with held up consignments at ports worried; customs examination yet to begin

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Summary

Importers whose consignments from China have been held up at ports and container freight stations across the country are a worried lot. It has been five days since the consignments were held for examination, but the process has not yet begun, sources told CNBC-TV18. The instructions to customs officials clearing the cargo, from their superiors …

Importers whose consignments from China have been held up at ports and container freight stations across the country are a worried lot.

It has been five days since the consignments were held for examination, but the process has not yet begun, sources told CNBC-TV18.

The instructions to customs officials clearing the cargo, from their superiors are to “Open and de-stuff all container cargo and examine 100 percent (all packages) at the item level. Verify declared quantity, description, address, other notification claimed valuation, and check for concealment”, according to information accessed by CNBC-TV18.

Customs officials say they have received a tip-off from intelligence agencies about narcotics being brought in via Chinese containers. But with the containers not yet being been opened for examination, importers are worried about the additional costs, opportunity and actual.

Most Chinese import orders are pre-paid as the country rarely ships orders on credit. Add to that the penalties on delays that importers will have to pay shipping lines and Container Freight Stations (CFSes), if these are not explicitly waived off by a government order.

Container Freight Stations and shipping lines are privately operated.

Industry bodies have highlighted that prolonged delays will hamper production by affecting the supply chain.

“We fear that if the supply chain is broken then there will be severe
shortage of essential communication, equipment required for health, work-from-home and online education goods such as smartphones, tablets and laptops, since alternative supplies are not available in the local and global markets amidst the COVID-19 outbreak,” electronics body ICMEA said in its letter to the Finance Ministry and customs authority. It also said that opening finished products could lead to their getting soiled and becoming unfit for sale.

Industry bodies are worried about the lack of official communication from the government to port authorities or to the companies about the timelines for releasing the containers. Customs officials have only verbally passed on these orders to all authorities including ports and CFSes.

According to import-export traders, shipments are routinely held and examined based on intelligence reports but not at this scale.
Importers have already paid heavy demurrages during lockdown period, and fear this will pile on heavy penalties on them as shipping companies and port authorities have not waived off any so far.

Shipping company DHL Express has suspended picking shipments from China, Hong Kong and Macau destined for India with immediate effect for the next 10 days. The move comes amid uncertainty surrounding clearance of consignments from China and Hong Kong at sea and airports in India, DHL Express said.

“Over the last few days we are witnessing a severe lag in customs clearance for shipments originating from China, Hong Kong and Macau across all the ports in India”, DHL said in an email to clients who were adversely impacted, a copy of which was seen by CNBC-TV18.

The letter read, “This [the lag in clearance] has led to uncontrollable queuing, congestion and delays of shipments in our clearance ports across the country.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

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index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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EXCLUSIVE: India-China standoff may delay foreign investments in mobile handset manufacturing

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Summary

India’s Production-Linked-Incentive (PLI) scheme to boost mobile handset manufacturing has started off on the right note. Two large Taiwanese manufacturers, already present in India, have submitted their applications under the scheme. The government is optimistic. “We expect mobile handsets to become the biggest export commodity in the next 4-5 years,” an Information Technology Ministry official …

India’s Production-Linked-Incentive (PLI) scheme to boost mobile handset manufacturing has started off on the right note. Two large Taiwanese manufacturers, already present in India, have submitted their applications under the scheme.

The government is optimistic.

“We expect mobile handsets to become the biggest export commodity in the next 4-5 years,” an Information Technology Ministry official told CNBC-TV18. “Many companies are still finalizing their annual accounts and we expect their applications once the paperwork is ready,” the official said, adding that the deadline for application was unlikely to be extended.

Yet, it is unclear if other manufacturers and investors looking to reduce reliance on China, will see India as the logical alternative. The changed geopolitical environment following the standoff between the two countries at the Ladakh border could delay investment plans of potential investors.

Apple has been looking to reduce its reliance on China and wants to export mobile handsets worth $40 billion from India in the next five years. Apple, like most other brands, does not manufacture its own handsets and instead, sources them from contract manufacturers.

Two of Apple’s Taiwanese contract manufacturers – Foxconn and Wistron – have already submitted their applications under the PLI scheme.

However, South Korean giant, Samsung, which plans to manufacture and export handsets worth $20 billion from India in the next five years is yet to submit its PLI application. Given that Apple and Samsung control almost 35 percent of the world’s mobile handset market, their investments in India have the potential to change the mobile handset manufacturing landscape in the country.

“There is a total incentive of Rs 50,000 crore and there are 5-6 large companies that control 80 percent of the global mobile market. Initially, we will pick five global champions who under the PLI scheme will be permitted to participate,” India’s IT Minister had told CNBC-TV18 on June 2.

Foxconn’s, as well as Wistron’s applications for the PLI were probably expeditious because they already have a presence in India. But the question remains, whether the incentives offered under the PLI scheme are compelling enough to attract other investors in the current geopolitical environment.

India’s advantage

The political risks emanating from the tension between the US and China and the post-COVID realization of over-dependence on Chinese factories has prompted many companies to adopt a China-plus-one strategy. In fact, some countries are also incentivizing their manufacturers to reduce dependence on China. For instance, Japan has earmarked $2.2 billion to incentivize its manufactures to move production out of China.

UBS’ Evidence Lab’s CFO survey, released in March 2020, found that over 76 percent of the respondents were planning to shift their supply chains away from China and 66 percent were planning to also shift their production facilities from there. The same survey found that 10 percent of such companies were eyeing India for new incremental investments. However, that is something likely to play out over the longer term for mobile handset manufacturers. During the initial years of transition, given the frail electronics manufacturing ecosystem in India, they will have to import at least some components from China.

Border standoff a spoiler

Over the last couple of days, some consignments from China have been held up at major ports for additional clearances. This, despite there being no formal directive from the Indian government to the Customs department.

“Authorities have abruptly halted the clearance of industry consignments coming in from China (and perhaps other destinations) at most major ports and airports,” US-India Strategic Partnership Forum told the Indian Ministry of Commerce in a letter dated June 23.

Shipments of companies like Apple, Dell, Cisco, Ford Motors, and Foxconn were held up at the port. In such a scenario, investors might adopt a wait-and-watch approach or invest in other countries.

Companies can submit their applications under the PLI scheme until 31 July 2020 and the Indian government remains confident that despite the China-India standoff several top manufacturers will invest in the country.

“Companies don’t need to start investing until early next year. Currently, we are only accepting applications. We will review them and ask shortlisted applicants to submit additional information. Eventually, only five companies will be given incentives under the scheme. There is a design to this policy,” an Information Technology Ministry official told CNBC-TV18.

India’s aspirations of becoming a global mobile handset manufacturing hub, and the global denunciation of China after the COVID-19 outbreak, does create a favorable environment for attracting investment. At such a time, the government’s proactive approach to announce a policy to attract investments into India is definitely noteworthy. However, the success of this policy will to some extent depend upon two things. One, India’s ability to convince global investors that they will be insulated from the India-China border tensions which surface periodically. Second, on the country’s ability to create a favorable ecosystem for electronics manufacturing that reduces dependence on Chinese imports.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

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index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Chinese consignments to be held at Chennai ports, will experience delays in clearance

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Summary

Customs officials in Chennai have instructed all authorities handling import consignments originating from China not to clear them until further notice. The Chennai Commissionerate has issued instructions internally to port terminals, the airport, and all container freight stations (CFSes) to hold all cargo from China, even those shipments which have been cleared with an OOC. …

Customs officials in Chennai have instructed all authorities handling import consignments originating from China not to clear them until further notice.

The Chennai Commissionerate has issued instructions internally to port terminals, the airport, and all container freight stations (CFSes) to hold all cargo from China, even those shipments which have been cleared with an OOC.

A shipment given an OOC, or Out of Charge order is cleared by customs and found to have no discrepancies. However, even these shipments will be allowed to be delivered only after a re-examination by customs authorities.

According to sources, GV Krishna Rao, Chief Commissioner of the CGST and Central Excise of Tamil Nadu and Pondicherry informed importers that the cargo will be subject to re-examination due to intelligence inputs received by the excise authorities.

The intelligence received by the department could be based on breach of anti-dumping rules, inferior or wrong items in the shipment etc. Given the Covid-19 pandemic and the standoff between the Indian and Chinese armies in Ladakh, there is speculation over the grounds for re-examination.

In this case, the Chinese shipments in Chennai were put on hold and a re-examination ordered after Tamil Nadu police reportedly found crystal meth in tea bags with Chinese lettering, in two separate incidents in the state.

The Chennai Customs Brokers Association wrote to members asking them to prepare for delays in clearance of China-origin cargo arising from ports, CFSes, and airports. In a letter to members, it said, “An official trade notice/circular is still awaited from customs. Our association is in touch with customs officials to get further instructions on releasing the cargo which is under clearance”, it said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

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Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

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index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Some China containers held at ports; govt denies any move to block Chinese goods

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

Certain consignments of goods coming in from China have been held at a few ports for security concerns, CNBC-TV18 has learned from senior government officials and other sources.  The containers have been held and parked at isolated docks. When asked about the development by CNBCTV18,  senior finance ministry officials said there was no directive from …

Certain consignments of goods coming in from China have been held at a few ports for security concerns, CNBC-TV18 has learned from senior government officials and other sources.  The containers have been held and parked at isolated docks.

When asked about the development by CNBCTV18,  senior finance ministry officials said there was no directive from the government on this.

“No orders, verbal or written, have been issued to any port by customs or by the central board of indirect taxes and customs (CBIC) to bar or not to accept containers from China. If in some cases, some containers are held up then they are for the intelligence input and on the basis of risk assessment, which a routine and on-going exercise,” a senior Finance Ministry official told CNBC-TV18.

On further inquiries, it was learned that the move to hold certain containers/ consignments following intelligence inputs was witnessed at few ports of Chennai and Mumbai.

Holding containers/ consignments based on security alerts, till they are formally cleared is not a new trend.

But the timing does raise eyebrows, coming as it does amid the skirmishes at the India-China border.

When asked, senior customs officials clarified that the move had nothing to do with the developments at the border. 

“It is a decision only for some consignments/ containers and not all coming from China and it will be wrong to call it as an anti-China decision taken by the government,” a senior customs official, who did not wish to be quoted, said.

Rather, the move is based on an intelligence alert that  China could send certain deliberately coronavirus-infected goods to further create panic in India, the official said.

These consignments/containers have been kept at isolated docks for further investigation and sanitization before they are formally cleared for human interaction in the country, the official said.

He clarified that the move was not aimed at blocking Chinese imports and these containers would be cleared after a detailed examination, as per routine process.

Meanwhile, the clamour to boycott Chinese goods is getting louder, but the government is not made any formal statement on the issue even as moves are afoot to reduce dependence on Chinese imports.

A survey by market research firm LocalCircles showed that 87 percent citizens were willing to boycott Chinese products following the clashes the border.

“Sentiment has been hurt and many are willing to buy Indian counterparts of Chinese products though they know it will cost more”, said SachinTaparia, founder of LocalCircles.

The survey also found that 42 percent of the respondents favoured a 200 percent duty on Chinese products and imports to be permitted only when the products met Indian standards.

Industry associations are also trying to convince their members, traders, manufacturers to slowly move towards local produce rather than depending on cheap Chinese imports.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

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Shanghai residents turn to NFTs to record COVID lockdown, combat censorship

LIVE TV

today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
Quiz
Powered by
Are you a Crypto Head? It’s time to prove it!
10 Questions · 5 Minutes
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Win WRX (WazirX token) worth Rs. 1500.
Question 1 of 5

What coins do you think will be valuable over next 3 years?

Answer Anonymously

Should Elon Musk be able to buy Twitter?