China to invest $100 billion in India over 5 years

[Yeti]

As if the West never spy on India

Yes they do they are sneaky snakes I hope India starts to be active in this front too.

 

[kbd-raaf]

We are talking about a $100 bln investment and not 4.4 trln in the case of India- in fact much of China's forex reserves are the consequence of current account surpluses and it could potentially use most of it to buy up assets through entities like CIC if it chose to (although it would need to retain a reasonable buffer to account for unanticipated outflows of hot money as well as to maintain RMB's exchange rate against the $)

As for the reminder of your post, the manner in which it was capitalised has little relevance to the purpose of CIC, which is to invest, on behalf of the Chinese state, foreign exchange inflows into the country that are in excess of requirements of exchange rate manipulation and liquidity management...

Yes I am aware of how the Chinese have developed their immense currency reserves. They are a net purchaser of US treasuries.

I also understand that the CIC invests money on the behalf of the PRC. However most of the $4.4T they have in reserves is most certainly not liquid and at best can be used as backing for bonds which in turn capitalises their investment banks.

I feel like we're going around in circles.

 

[temujin]

Yes I am aware of how the Chinese have developed their immense currency reserves. They are a net purchaser of US treasuries.

I also understand that the CIC invests money on the behalf of the PRC. However most of the $4.4T they have in reserves is most certainly not liquid and at best can be used as backing for bonds which in turn capitalises their investment banks.

I feel like we're going around in circles.

Most of that $4.4 trln is held in either US treasuries or other high quality sovereign debt, all of which is highly liquid (in fact, its considered to be as good as cash, well by countries that issue them anyway, hence the low yield). Sovereign wealth funds can be funded either though direct capital infusions from governments acting through respective central banks or, as in the case of CIC, through special bonds issues which divert forex inflows into the sovereign wealth fund instead of the Central bank.

Paradoxically,the relatively modest size of CIC that you have referred to is partly down to the enormity of China's reserves itself. Any large scale attempt by China to dump its treasury holdings for foreign assets would drive US yields through the roof which will not only damage the economy of China's second biggest trading partner but also trash the value of China's own foreign reserves, due to the magnitude of its own holdings of Fed debt. China has been trying to end this unhappy marriage with US debt for many years now and entities like the CIC are part of a gradual reinvestment away from US treasuries to tangible, non $ denominated assets..

 

[Chanakya's_Chant]

China to invest $100 billion in India over 5 years

Jinping will land in Modi's home state Gujarat on September 17 — the Prime Minister's birthday — following his visit of Tajikistan, Maldives and Sri Lanka.​

MUMBAI: Chinese president Xi Jinping will bring along with him $100 billion or Rs 6 lakh crore of investment commitments over five years during his upcoming India visit next week. This is nearly thrice the $35 billion secured by Prime Minister Narendra Modi during his Japan trip.

Jinping will land in Modi's home state Gujarat on September 17 — the Prime Minister's birthday — following his visit of Tajikistan, Maldives and Sri Lanka.

Confirming this, Liu Youfa, China's consul-general in Mumbai, told TOI, "On a conservative estimate, I can say that we will commit investments of over $100 billion or thrice the investments committed by Japan during our President Xi Jinping's visit next week. These will be made in setting up of industrial parks, modernization of railways, highways, ports, power generation, distribution and transmission, automobiles, manufacturing, food processing and textile industries."

The consul-general's statements coincide with Modi's call for world class infrastructure projects after his review of major infrastructure sectors on Friday. The government also announced new projects worth Rs 9 lakh crore in energy, power, and roads.

China will initially invest $7 billion in industrial parks in Pune and Gandhinagar. "The Pune industrial park — spread across 5 square kilometres with an investment of $5 billion — will be for automobiles that will employ one lakh people and manufacture 1.5 lakh speciality vehicles. The Gujarat industrial park will be for manufacturing power equipment. China is also working on setting up an industrial park in Tamil Nadu for the textile sector and another one for the food processing sector," said Liu.

READ ALSO: China seeks private investments in railway sector - The Times of India

Chinese investments in industrial parks are just the tip of the iceberg as Chinese firms are eyeing over $50 billion worth of investments in modernization of the Indian railways and running bullet and hi-speed trains in India. Modi on Friday said that the railways have been granted clearance for 100% FDI, and therefore it should come up with a comprehensive plan for facilitating FDI in the sector.

In this photograph taken on July 15, 2014, Chinese President Xi Jinping (left) shakes hands with Prime Minister Narendra Modi during the 6th BRICS Summit in the Brazilian city of Fortaleza. (AFP Photo)

"The first bullet train project was given to Japan, which was a government decision. We are optimistic of building India's next bullet train in India. Besides bullet trains, we want to connect the cities with high-speed trains with speed of 160 km/hr. We will also look at modernization projects of Indian Railways across the country," said Liu.

China is willing to invest another $50 billion in roads, ports and the NDA government's ambitious river-linking plan. "India has over 600 reservoirs that need dredging work to provide better irrigation systems for the farmers. We are looking to work on that. Besides, our major thrust will be on construction of roads and ports," said Liu.

On Friday, road transport and highways minister Nitin Gadkari announced the launch of new roads and highways projects this year worth Rs 2 lakh crore.

Power minister Piyush Goyal said that $100 billion of investments are likely to flow into India's renewable sector in the next four years. Oil minister Dharmendra Pradhan, while meeting Odisha chief minister Naveen Patnaik, said that Odisha alone will receive about Rs 1 lakh crore worth of investment in the next five years in petrochemicals, oil & gas pipelines, LNG & LPG terminals, and strategic oil reserves to make it the 'energy gateway for eastern India.

The Chinese president is coming with a delegation of over 100 business heads, including those from China Harbour, China Railway Construction Group and Huawei, among others, and will address a business gathering of over 400 Indian CEOs in Delhi. The big four Chinese banks — Bank of China, Industrial & Commercial Bank of China (ICBC), China Construction Bank and the Agriculture Bank of China — are also coming with the delegation to give billions of dollars in loans to Indian infrastructure projects to be done in joint venture with Chinese firms.

"All major JV projects will be funded by Chinese banks. Major corporate houses like Tatas, Infosys, Reliance and Essar have already taken loans from these banks and the funding will only increase," said Liu.

Source:- China to invest $100 billion in India over 5 years - The Times of India

@Nihonjin1051 @Chinese-Dragon​

 

[Aepsilons]

This is, indeed, a win win scenario for India and China.

May the relationship between the two remain fortuitous and auspicious !

 

[Fireurimagination]

35 Billion $ - Japan, 100 Billion $ - China and Modi will be going to US next I just hope that the pledges materialize

 

[Trawllu]

35 Billion $ - Japan, 100 Billion $ - China and Modi will be going to US next I just hope that the pledges materialize

see forget the full committed amout

even if 20% materialises then wahts the problem

even 20% makes it 27billion dollars

 

[Water Car Engineer]

What Chinese car company will manufacture their models in India? Definitely a shiny China is holding up.

 

[Kloitra]

China will initially invest $7 billion in industrial parks in Pune and Gandhinagar.

I wish they stop spending in big cities/states and start in the backward area. The basic cost in Pune would be lot more than some backward area like MP/Jharkhand. Also, the economy spreads out more evenly.

What Chinese car company will manufacture their models in India?

Would the industrial parks developed by China only house Chinese companies or they would only develop the infra and any company would be able to take over?

 

[OrionHunter]

This is, indeed, a win win scenario for India and China.

May the relationship between the two remain fortuitous and auspicious !

This is nothing! If India and China can sort out the border problem, then the sky would be the limit!

I think both countries need to be pragmatic. Give and take is the only way forward, not egos and politics. Give China Aksai Chin, which is of no strategic importance to future Sino-India relations, and China should acknowledge Arunachal as an integral part of India, and convert the LAC into an international border agreeable to both countries on the lines of the land boundary agreement with BD.

The combined economic and military might of India and China would usher in a new world order.

 

[Trawllu]

What Chinese car company will manufacture their models in India? Definitely a shiny China is holding up.

d

does chinese car companies have their own car models ?

arent they copying the western car models ?

 

[Water Car Engineer]

d

does chinese car companies have their own car models ?

arent they copying the western car models ?

They have a lot of original designs.

 

[Kloitra]

d

does chinese car companies have their own car models ?

arent they copying the western car models ?

Irrelevant. By sheer numbers they make more vehicles than any other company. Indian companies are no where close to what they do.

 

[SrNair]

Trade relation is in full throttle after new govt sworn in.
Chinese President like strong leaders .Narendra Modi is a strong leaders unlike of his predecessor .We should give priority to our neighbour than some western giants.

 

[Ragnar]

Can anyone please tell the value of comparable anticipated Chinese investments in Pakistan? Just curious..