This year has been so tough right from the beginning. After the nationwide outbreak of Covid-19, it’s an unprecedented clash across borders of the two countries India and China, that resulted in a waking call between traders to shun out Chinese products across the country. And Chinese companies have started feeling the heat.
Yes, with the connection to the border clash, the very famous Chinese mobile enterprise Oppo revokes the live online flagship smartphone launch in India.
Militaries of the two countries were fighting on the borders over the disputed Himalayan mountain frontier throughout this week where 20 of the Indian soldiers have reportedly lost their lives. This conflict is considered to be one of the worst unusual clashes recorded ever since 1967 as reported.
This vicious and melancholic conflict left the people of India and the traders with a sign of alarm to unite against all the Chinese products over the country. Sensing these waves of the opposition towards Chinese goods in Indian soil, Oppo took a more significant leap to rescind the much-awaited live launch of its flagship smartphone model in India.
This move is apparently not smooth for Chinese smartphone investors. India is regarded as one of the lucrative markets for Chinese products. But these investors are pushed through the extremities on rejecting Chinese products right from the COVID outbreak had made them take up this tough decision.
Chinese investors like Great Wall, SAIC and Bytedance have parked a significant sum in the Indian market. The renowned Alibaba has also capitalised in some Indian startups, whereas smartphone players Oppo, Vivo and Xiaomi hold a considerable share, say for 8 in 10 smartphone sales in India. In Q1 2020 a total of 32.5 million smartphones were shipped in India. About 24 million of those were shipped by Chinese smartphone manufacturers only.
Now coming to the core discussion of the article, Oppo which is said to have a smartphone assembly plant in India, had announced earlier that it would release its fresh Oppo Find X2 smartphone model live online by 4 pm on Wednesday. But then the YouTube link was not available for viewing and is found to be updated with the pre-recorded 20-minute video to launch the phone along with the message of support to the Indian authorities in controlling this COVID outbreak.
There seems to be no reply from the Oppo personnel regarding the change in release arrangements. But the trusted source denoted that the crucial decision was made to prevent all possible upheaval across the social media.
The trusted source also quoted that “There is tension in the environment.”
It was way before the border war, by April, New Delhi had changed all the foreign investment policy as regards to China. The Indian government is screening all the ongoing investments before being executed. This barely embarrasses Chinese investors to a more substantial extent.
Abhishek Saxena, the co-founder of Phoenix Legal, the firm that gives consultation to Chinese clients, quoted that,
“The current government will play hardball… I do not think any new approvals for China proposals will happen in a hurry. ”
That anti-China protest didn’t stop away here! To add more fuel to the fire, the All India Traders Confederation, aka AITC, which constitutes approximately 70 million brick and mortar retail business in India has announced this Wednesday that the members of this confederation strongly oppose all the imported Chinese goods even when they incur a substantial business loss.
The sources also quoted that one of the Twitter users had uploaded a video showcasing people scraping out ‘Chinese TV’ sets from the tall buildings and stepping on it before dismantling it.
Also, Hindu nationalist group Swadeshi Jagran Manch, that supports self-esteem and self-reliance persuaded Indian authorities to stop Chinese corporates entirely from participating in the nation tenders.
It is also reported that some of the above said members and protestors were arrested because of shouting in unison with some slogan like “Made in China Down Down ” in front of the Chinese embassy in New Delhi.
The future for all the Chinese companies in India looks uncertain. If the issue escalate further soon all the Chinese companies, especially Chinese Smartphone manufacturers will find it difficult to continue their operations in India – the largest market outside their home country. In the absence f any strong homegrown competitor, Samsung, Apple and probably LG would be benefited the most.