China-India Business Update: Apr. 11

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Apr. 11 – Welcome to our China-India round up in which we examine the latest bilateral news and commentary affecting foreign investment in the two countries.

Here we provide a list of recent regional news of interest to China-based business individuals who may be considering doing business in, or with, India.

China Top Economy in 2020, India in 2050
India, currently boasting the fourth-largest economy in the world in terms of purchasing power parity (PPP), will become the largest by 2050, according to the 2012 edition of The Wealth Report. The report also predicts China, currently the world’s second largest economy, will take the top spot from the United States by 2020.

China-India-ASEAN Hot Markets Watch – Live Webinar Download
A 45-minute live webinar download concerning changing China trends, the development of India, and the role of emerging ASEAN (plus Q&A session) is now available. Featuring Dezan Shira & Associates’ Principal Chris Devonshire-Ellis.

Selling to China & India’s Middle Class
How to target China and India’s emerging middle class consumers through a manufacturing base in Vietnam. The reason for this manufacturing suggestion is because Vietnam is a member of ASEAN, which has free trade agreements with both China and India.

Exit China, Enter India – Expat Transitions: Part I
This is Part I of our Expat Transitions Series: Exit Shanghai, Enter Delhi. My Smartphone is Reincarnated.

Exit China, Enter India – Expat Transitions: Part II
This is Part II of our Expat Transitions Series: Apartment Hunting in Delhi vs. Shanghai.

Apple, IKEA Looking to Set Up in India – The Sourcing Clause Obstacles
Obstacles remain over precise definitions over sourcing clauses in single brand retail.

China, India and Thailand Fastest Growing Markets for LDC Nations
World Trade Organization Director-General Pascal Lamy has stated that China, India and Thailand are the fastest growing markets for exports from the world’s least developed countries.

Report: China Overtakes U.S. as the World’s Top Grocery Market
All four BRIC nations (Brazil, Russia, India and China) will be among the top five grocery markets by 2015.

India to Define Minimum Stake in Joint Ventures
The Indian government is set to make a clarification to the country’s foreign investment laws, with specific attention to joint venture provisions.

China Halts Imports of Indian Seafood
China is to ban imports of seafood from India after the South Asian country failed to obtain certification from China’s General Administration of Quality Supervision, Inspection and Quarantine. India exported some 159,000 tons of seafood to China last year.

Indian Air Traffic Growth Second Highest in 2011 after Brazil
The International Air Transport Association (IATA) has just released data regarding the demand for domestic flights in 2011, with India growing at 12.3 percent last year, behind only Brazil’s growth rate of 17.9 percent.

India to Revive FDI into Aviation, Multi-Brand Retail
Indian Commerce Minister Anand Sharma has stated that the government decision concerning restrictions to foreign investment into the country’s multi-brand retail sector were “just a pause” and had not been scrapped.

PayPal Here to Expand into China and India
Ebay subsidiary PayPal launched its new mobile device for retail payments, PayPal Here, at an event in San Francisco last month with plans to expand into China and India.

Pakistan Urged to Follow ‘Sino-Indian Model’
In meetings that Pakistani President Asif Ali Zardari had with Indian Prime Minister Manmohan Singh in Delhi on Sunday, emphasis was made on improving ties and moving decades of mistrust aside.

BRICS Agree on Local Currency Pact
The BRICS countries, who completed their fifth annual summit in Delhi last week, have agreed to provide credit facilities to each other in local currencies.

Indian Communist Party Rejects Modern China’s Ideology
Communist manifestos diverge due to concerns that China is losing its way over GINI coefficients and capitalism.

Indian GAAR Impacts on Mauritius Tax Haven Use
India’s new General Anti-Avoidance Rules kicked in from April 1, and it looks like they will have an immediate impact on the use of Mauritius as a tax haven for investing in India.

China Claims 90% of Spratly Islands, Actually Controls 13%
India launches first nuclear sub as tensions grumble on over Spratly Islands.

Report: India to Overtake Japan in Car Sales by 2016
IHS Automotive, a leading market research firm in the automobile industry, estimates in a recent report that India will likely overtake Japan as the second largest vehicle market in Asia by 2016. Meanwhile, China will remain Asia’s largest auto market with its steady growth in auto sales volume.

India’s Top Six Cities – Complimentary City Guides!
Asia Briefing takes a closer look at India’s top six cities (by GDP) in the newly released Indian city guides for Mumbai, New Delhi, Kolkata, Bangalore, Chennai and Hyderabad.

Dezan Shira & Associates provides foreign direct investment advice and services to clients in both China and India. The firm specializes in due diligence, incorporation, tax, accounting and other business services and operates out of its offices in China, Hong Kong, India, Singapore and Vietnam. Please contact the practice at or as appropriate, visit the firm’s web site here, or download the firm’s brochure here.

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