Over 500 Chinese -funded enterprises are stunned, India is the cemetery of multinational companies

Zhigu Trend (ID: ZGTREND) | Xia Road 1

Are you ok?

At the Xiaomi Indian conference in 2015, the Lei Jun, who was attentive at that time, contributed the hottest ghost stalk and also gained the reputation of "Rebus".

Lei Jun thought about Apple, but Jobs succeeded Cook, but he prefers China. He came to China almost every quarter before the epidemic. In sharp comparison, after 2016, Cook has never been to India.

On May 1st this year, India seized assets of US $ 725 million (approximately 4.8 billion yuan) of Xiaomi Technology India Personal Co., Ltd.

This is the second time the Indian government has suppressed Xiaomi India. In January of this year, the Indian Tax Intelligence Agency (DRI) had fined Xiaomi India 6.53 billion rupees (about RMB 558 million) taxes.

According to statistics, as of now, at least 500 Chinese -funded enterprises have encountered taxes and compliance censuses in India. The targets have crackdown on mobile phone manufacturers, equipment suppliers to infrastructure investors, mobile applications, and mobile applications.

Back to the Supreme Rebus is Are you ok? It is more like asking all Chinese companies to go to sea India: Are you all okay?

01

Since December 2021, many mobile phone manufacturers, including Huawei, ZTE, vivo, and OPPO, have been investigated by relevant Indian departments.

India also has a tax review of other multinational companies. For example, Amazon was judged to conceal in June this year in the transaction of investing in a retail group, and was fined 2 billion rupees (about 170 million yuan). Many Han companies are also facing the same situation. The Indian taxation department also raid Foxconn last year, on the grounds that they also concealed income, tax avoidance, and fake accounts.

Tax issues are the way the Indian government is commonly used to regulate or restrict foreign -funded enterprises. In recent years, the Indian taxation department has conducted tax investigations and issued high ticket investigations on Shell, Nokia, IBM, Wal -Mart, and Kane Energy.

In a word, "Everyone is equal" in front of India.

To this end, Europe and the United States have also created a proper noun for this situation in India -Tax Terrorism.

Under tax terrorism, Chinese small and medium -sized enterprises have no grievances, and can only swallow bitter fruits silently.

According to Tiger Sniff, 80%of the small and medium -sized Chinese factories in India's "important industrial chain (such as mobile phones) have fallen." These small factories and small companies cannot afford to be tossed back and forth, and they cannot carry huge fines. Many Pleelly ended. Some companies have been in India for many years, and the company's turnover has 800 million yuan, and the account has only 100 million cash. However, due to the "tax check -up incident" account was frozen, a fine of 600 million can only be fined.

Because large enterprises have invested too much in printing, it is not easy to say farewell. Compared to the large Chinese companies that are still watching, American companies represented by Coca -Cola, IBM, GM, and Google generally choose to withdraw first, just like they evacuated Afghanistan.

Afghanistan is an Empire Cemetery. Is India a transnational company cemetery?

02

In India, there are also Chinese companies who choose "strategic retreat".

On July 22, Honor CEO said that the Honor team has withdrawn from India and will adopt a more secure way to develop the Indian market in the future.

He also said: (evacuated the Indian market) due to well -known reasons.

Interestingly, on May 5 this year, Honor CEO said that Honor in 2022 will start overseas market sales. Honor also stated that it will focus on about 20 core countries, covering Europe, the Middle East, Asia -Pacific, and Latin America. However, as for whether the Indian market is included, the glory did not explicitly disclose it at the time.

The meaning of "well -known reason" means long.

In the past, the punishment of relevant Indian departments, some Chinese companies insisted on their own regulations, but the Indian law enforcement department: a personal threat to our executives.

According to the materials submitted by the company to the local court, their predecessors and current CFOs were warned by local law enforcement agencies that they must be issued in accordance with the instructions that they will face but are not limited to but not limited to arrest, outlook damage, criminal responsibility and personal body. The consequences of violence.

At the beginning, the executives were still hard, but they couldn't hold it soon. Because the Indian law enforcement department also threatened the family of executives.

Stress is not only due to Indian officials, but also Indian folks.

In 2018, a Chinese home appliance company invested in the construction of a module factory in India. In 2020, the factory of the factory in the same park was smashed by the workers. The violent incident quickly triggered a chain reaction and eventually affected the entire industrial zone.

The industrial park has an Apple foundry, and Indian media reported that more than 20,000 Apple finished mobile phones were stolen during violence.

The Chinese enterprises who have been caught after the robbery said, "As long as we do not smash the factory, we will be content."

03

What is the bad business environment in India?

According to data disclosed in 2015, India's international business environment ranks low to more than 140 yuan worldwide, even under Iran. The "2017 Business Environment Report" released by the World Bank shows that India's business environment is also as low as 130 globally.

Even if it was once advocating Western countries in India, the investment environment in India has become calm.

The US State Department's investment environment in 2021 regards India as "a challenging business place." The Heritage Foundation ranked 27th among 39 countries in the Asia -Pacific region in the 2022 of the American Foundation. The overall score is lower than the regional and world average. The Indian government likes to retrieve taxes on international enterprises.

The most superb case is the 2007 Valifang transfer case.

Simply put, because the main body of the transferred company is established in the Cayman Islands, the need to transfer the equity of Indian companies in India's equity in India in India's equity in India. However, the Indian Taxation Bureau suggested that Congress specially revised the income tax law, stipulating that indirect transfer of Indian companies' equity should also be taxed in India, and it will be traced back to 50 years from 1961. The lawsuit was played from 2007 to 2020, from the District Court to international arbitration.

When you think that India's harsh donation of miscellaneous taxes should be ended, India can even rectify new tax collection reasons. For example, in 2020, the Indian government announced 2%of "digital taxes" to foreign companies that provide digital services in China.

This digital tax collection object is basically a rich Internet company. From the perspective of the Indian government, as long as the ultimate target customers of these companies are in India, they need to pay digital taxes.

What is more trembling than these harsh donations on the above is the "Enemy Asset Law".

This 1968 bill stipulates that any of the Indian government has the right to confiscate any of the property that belongs to the enemy, the enemy entity or the enemy company or the property managed by the above objects.

Do you think this bill is used only for wartime? Not.

In 2018, the Indian government re -revised the bill. Those Indians who have immigrated to China or Pakistan and have obtained citizenship in the local area. Assets auction.

Whenever Indian soldiers pick up things at the border between China and India, the Chinese companies in India are very nervous, and they are "well -known reasons."

04

According to Sun Zhengyi's time machine theory, the industry stages of different countries are different. You can use the status quo of developed countries to bet on the future of developing countries. We must make full use of the imbalance between development between different countries and industries.

It is this kind of "poor times" that allows people who have never embarked on India that have more expectations for this market. They hope that the dividends they have obtained in China that year can be restarted in India.

After the China Belt and Road Initiative was proposed at the end of 2013, there was a wave of overtaking in China.

However, the "Economist" predicts the Indian market: Big companies are looking forward to supporting the middle -class Indian middle class that can support a new round of economic prosperity and consumer feast, but this group has almost no existence in reality.

The size of the top 1%of the wealthy people in India is only comparable to Hong Kong. The following 9%are close to central Europe, and about 500 million people's living standards are close to the poorest Africa region. This rich and poor population structure is far from China.

People are poor but their ambitions are not short. India has a strong ethnic self -esteem, and this "self -esteem" has become a "mysterious self -confidence" that is far beyond its strength.

Indians are increasingly confident that they will surpass Japan and even China; their "domestic goods" can replace all foreign products, especially Chinese products.

In 2020, the Modi government shouted a high -profile "replacement of China industry" policy.

Modi's "replacement of China Industry" policy can be further simplified into "three alternatives": replacing "Made in China" with "manufacturing in India" and "third -party manufacturing"; "Indian Capital" and "third -party capital" instead of "China "Capital"; replacing the "American Western+China" industrial cooperation model with the industrial cooperation model of "American West+India".

Some experts and scholars say that this is ABC, that is, the Anything But China (except China, everything is OK).

Indian smartphone TOP5 manufacturer's market share changes, source: leopard change

Although the Indian government spares no effort to cultivate and protect local brands, local manufacturers still cannot escape the fate of marginalization, but "Made in China" is very popular. The local brands have become unpredictable Abou, which has caused India to be more imbalanced.

In June 2020, the All -Indian Commercial Association (CAIT) with 70 million members and 40,000 branches listed a resistance list, which listed 3,000 Chinese products, from textiles to electronic products, everything.

As a result, "resisting China" for more than half a year, India has gone through the largest economic recession in 20 years.

Indians who burn Chinese products on the street, source: Associated Press

In fact, deeply cultivating the Indian market has not brought much benefits to Chinese companies. Taking Xiaomi as an example, the year of the highest profit in India is only 350 million yuan, and a fine of no reason to pay is 4.8 billion yuan.

In addition, over -investment in India, which focuses on cost -effectiveness, has also led to poor competition in Chinese brands in the mid -to -high -end market. The apple that abandoned the Indian market firmly controlled the global high -end market.

Picture source: Leopard Change

05

Abandoned India's apple, early ascended. The Chinese high -speed rail that was forced to abandon India was also stolen.

In 2014, Modi proposed the "Made in India" year, and also launched an ambitious high -speed rail plan. According to the plan, the first high -speed rail was from Mumbai, known as "India and Shanghai" to Ahamamadbad. Where is Ahamamadaard? It was Modi's hometown. It seems to be a well -known reason.

Faced with the fierce competitions of Spain, France, and Japan, China still dominates. Not only because of the highest cost performance, but also meticulous preparation.

But at this moment, then Japanese Prime Minister Shinzo Abe suddenly came to Sao operation. A condition that Modi could not refuse, he promised to pay a low -interest loan of 5 trillion yen in India, with an annual interest rate of 0.1%and a repayment period of 50 years.

In the end, Japan snatched the "fat" of Indian high -speed rail from the mouth of China.

The cooperation agreement reached by the day seal, this high -speed rail is 508 kilometers long, with a planned speed of 320 kilometers per hour. It started in 2017 and opened in 2022.

Today this high -speed rail has only been repaired for 10 kilometers. According to this speed, the date of completion is until 254 years.

Should I thank Japan well? Otherwise, it must be us.

The Japanese high -speed rail folded to India, exposing another life door in India.

India's various economic indicators today, whether it is GDP, steel, coal, petroleum power, and automobile production, basically at the level of 2004 in China.

In 2004, the United States was deeply trapped in the Middle East, the electronics industry shifted to the mainland, and China had just joined the WTO. Under this "historic opportunity", the Chinese electronics industry revitalization plan was introduced. A large number of infrastructure projects have been launched one after another, and "Made in China" began to expand international influence.

At present, the Chinese and American frictions are intensifying, and the "decoustal" of the industrial chain is here. The situation in India is very similar to China more than ten years ago. But there is an illusion in this world, called "China can, I can".

For post -developed economies, land reform is almost a must -have road for industrialization. Japan, South Korea, and China have undergone land reform.

In China, the government levied land from farmers for compensation and resettlement. The collective land is transferred to the use party. The difference in this transfer session is "land finance". In addition to the disadvantages of its disadvantages, the advantage is that local funds have obtained the funds of urban infrastructure and the bargaining chips of investment promotion. This is an essential element for the development of the manufacturing industry.

In India, after the government collects land, it is transferred directly to land users. Local governments without any benefits naturally have no motivation to advance the collection, and even deliberately add to the local public opinion.

That's right, Japan wants to repair the high -speed rail in India, but found that the construction land that needs to be levied can not be collected so far ...

Probably the Indian market is too tempting, so that when Japan sold the high -speed rail, they forgot their compatriots in the land.

In April 2012, Suzuki Motors signed a 700 -acre land purchase agreement with the Gagratt government to build its second largest factories in India. On the day of Independence on India in 2013, 5,000 farmers were organized near the car manufacturer, claiming to be the stakeholders of this land. Hold up the banner and shout "Maruti (Go Back)"!

Earlier 2005, the same script was also the same script. The result was also the feathers.

Other Tianyuan is that after Tesla and Shanghai reached a cooperation, it took only 537 days from an open space to the first batch of car delivery.

China's business environment allowed Musk to put the second factory in Shanghai again. This is still the most serious epidemic in Shanghai, and Musk is still confident.

On October 2, 2020, Musk's solemn promise to Indian netizens "When Tesla enters India", "Must be next year"!

Then, there is no more. Maybe the world's richest man prefers Mars than India.

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