Pacific Money | Economy | South Asia

India’s China 1 Dilemma: It May Need China to Depend Less on China

India wants to rely less on China. Interviews with executives and policymakers suggest that whether Chinese firms take part matters less than what India gets for letting them.

On July 8, New Delhi cleared a smartphone joint venture between Dixon Technologies, an Indian firm, and the Indian arm of Vivo, a Chinese one. Dixon will hold 51 percent, Vivo 49. The partnership was first announced in December 2024 – its approval took nearly 19 months. That is a fair measure of the scrutiny Chinese money attracts in India.

The deal captures the dilemma of India’s China 1 ambitions. India wants to reduce its dependence on China, but building the manufacturing capabilities to do so may need more Chinese involvement, not less. Whether Dixon-Vivo merely adds assembly capacity or helps build Indian technology and Indian suppliers remains to be seen.

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On July 8, New Delhi cleared a smartphone joint venture between Dixon Technologies, an Indian firm, and the Indian arm of Vivo, a Chinese one. Dixon will hold 51 percent, Vivo 49. The partnership was first announced in December 2024 – its........

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