Chinese investments will be fast tracked after policy change, says India

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India plans to fast track the review of some investment proposals from neigbouring countries such as China following concerns new screening rules could hit plans of companies and investors.

To avoid opportunistic takeovers during the coronavirus outbreak, India said this week that all foreign direct investment from countries sharing a land border would require prior government clearance, meaning they can’t go through a so-called automatic route.

Advisers to Chinese firms have said they are concerned the process could take several weeks and hit deals and investment timelines. Auto firms such as SAIC’s (600104.SS) MG Motor and Great Wall (601633.SS), and investors Alibaba (BABA.N) and Tencent (0700.HK) have placed major bets on India.