Here's Why India Slashes Visas For Chinese Nationals Post-Galwan Clash

The number of visas issued to Chinese nationals by India has experienced a significant decline following the border clash between Indian Army soldiers and the People's Liberation Army (PLA) at Galwan four years ago.

This is attributed to the Narendra Modi government's heightened focus on national economic security, according to top officials and data obtained by HT.

Chinese Visas Seen Major Dip In India - Here's What You Must Know

The Galwan clash resulted in the deaths of twenty Indian soldiers, including Colonel Santosh Babu, as they attempted to repel an incursion by the PLA into Indian territory in East Ladakh. An unspecified number of Chinese soldiers were also killed during the skirmish, as reported by Hindustan Times.

It has been revealed through senior officials in the national security establishment and economic ministries that around 200,000 visas were issued to Chinese nationals in 2019 before the pandemic and the Galwan clash on June 15, 2020. This figure was subsequently reduced to a mere 2,000 in 2024 following a structural screening of Chinese investments in India.

However, in the past eight months, approximately 1,500 visas have been issued to Chinese nationals, with about 1,000 of these visas being for the Indian electronics industry. An additional 1,000 visas are currently in the pipeline, predominantly for the electronics sector after thorough screening, as reported by Hindustan Times.

The trade deficit with China exceeded $38.11 billion in the first five months of the current year. India exported only $8.93 billion worth of merchandise to China between January and May 2024, while goods valued at $47 billion were imported from Beijing. This occurred despite the government's reduction of corporate income tax and the launch of a ₹2 lakh crore production-linked incentive (PLI) scheme across a dozen sectors to boost production.

Although the Indian electronic industry has expressed concerns about job losses due to the denial of visas to Chinese businessmen and workers, official data released on June 14 indicated that India's merchandise exports in May 2024 saw an over 9% annual increase, driven by petroleum products, engineering goods, and electronics.

India's electronic goods exports rose to $29.12 billion in FY 2024 from $23.55 billion in FY 2023, largely due to the PLI scheme. According to five top officials, the post-Galwan structural screening of Chinese investments revealed that Chinese telecommunication companies, such as Vivo, were violating Indian laws and were even charged by the Enforcement Directorate for laundering funds to China to evade Indian taxes.

The ED has accused Vivo of transferring approximately $13 billion back to China and of violating visa conditions for its executives and workers. In response to the Enforcement Directorate's actions, Vivo released a statement expressing deep concern over the current measures taken by the authorities, as per media reports.

The company described the recent arrests as part of ongoing harassment, creating an atmosphere of uncertainty in the wider industry landscape. Vivo stated its intention to use all legal avenues to challenge these accusations. While the Indian industry has called for an increase in visas for Chinese workers and technicians, the national security establishment and economic ministries remain firm that visas will only be issued after careful vetting.

It is emphasized that unrestricted issuance of visas could undermine India's "Atmanirbhar Bharat" initiative and affect domestic manufacturing. India-China bilateral relations have remained strained since the PLA's transgressions in May 2020, with Beijing continuing to impede the Indian Army's patrols along its side of the Line of Actual Control in Ladakh.

Despite multiple rounds of military and diplomatic negotiations, the PLA has yet to de-escalate along the LAC and restore the pre-Galwan status quo in East Ladakh. Four years post-Galwan, the Chinese military maintains a robust presence in East Ladakh, with substantial reserves positioned in the hinterland.

The situation in the Indian Ocean Region reflects a similar stance, with Chinese surveillance ships deployed year-round. As of Thursday, the Chinese ballistic missile tracker Yuan Wang 7 was stationed 1,000 kilometres south of Kanyakumari, while PLA Navy's anti-piracy forces operated in Djibouti, the Gulf of Aden, and the Madagascar channel.

An official commented that, with the Xi Jinping regime continuing to exert pressure on India both on land and at sea, the Modi government is compelled to take measures to reduce economic dependence on China. "India's national economic security cannot be compromised for a few pieces of silver, as reported by Hindustan Times.

Visas for Chinese technicians and businessmen will be issued only after rigorous screening to ensure that travel conditions are not violated," said a Cabinet minister who requested anonymity.