China-India Business Update: Aug. 31

Posted by Reading Time: 5 minutes

Aug. 31 – Welcome to our regular China-India round up in which we examine the latest bilateral news and commentary affecting foreign investment in the two countries.

China, India Take Huge Chunk of Emerging Market Private Equity
A study by the Emerging Markets Private Equity Association, which manages a global proprietary database of private equity activity across emerging markets, shows that private equity funds in global markets are mainly concentrated in two emerging powers: China and India.

Lobsang Sangay Replaces Dalai Lama as Head of Exiled Tibetan Gov’t
Lobsang Sangay, a 43-year-old Harvard scholar, was sworn in as the new Kalon Tripa (prime minister) of the Tibetan government-in-exile, officially replacing the Dalai Lama as the establishment’s political leader. He took the oath at exactly 9 minutes and 9 seconds after 9 a.m. on August 8 in the central courtyard of Tsuglakhang Temple in the northern Indian city of Dharamsala.

India’s LLP Statistics by State
There are many companies in India which have converted into LLPs in the past three years. The statistics given here are split according to the various Indian states.

India’s Foreign Company Statistics by State
The Minister of State in the Ministry of Corporate Affairs informed the lower house in India that 820 foreign companies have been registered in the last three years. The statistics for various states are given here.

India to Build Rail Links near Disputed Border with China
In what appears to be a move to counteract China’s recent infrastructure build-up along its side of the Sino-Indian border, India has also announced plans to build three strategic rail links along its northeastern frontier, according to a recent government report.

China Wins Approval to Explore Indian Ocean
China’s application to undertake deep-sea mineral exploration activities in the southwestern Indian Ocean has been approved by the International Sea-bed Authority (ISA), giving China exclusive rights to explore polymetallic sulphide ore and priority mining rights for future development programs.

India’s MCA Cuts Down Company Registration Time
The Ministry of Corporate Affairs has cut down measures under MCA-21 to facilitate the registration of a company within 24 to 48 hours where there is no complexity about availability of names.

India Sees Strong FDI despite Global Recession Fears
Foreign direct investment (FDI) in India increased over 400 percent in June, reaching US$5.65 billion, contrasted to US$1.38 billion in June 2010.

China Says India and U.S. Primary Culprits in Recent Cyber Attacks
China has suffered nearly half a million cyber-attacks in the last year alone, many of which have originated in India and the United States, the Chinese government claimed in an official report released on August 9.

India, Bangladesh Set to Swap 162 Enclaves
India and Bangladesh are expected to sign a deal next week that would see the two nations exchange some 162 enclaves – isolated pockets of territory completely surrounded by the other country – that have been isolated for more than 60 years.

India Develops Gold, Diamond-Embedded Contact Lenses
A company in India is now offering contact lenses fitted with real diamonds and gold. Weighing five grams and costing INR700,000 (US$15,444), the lenses sit either six millimeters or nine millimeters away from the cornea and are available in four designs: white gold, 18 diamonds on white gold, yellow gold, and 18 diamonds on yellow gold.

Action Construction Makes Acquisitions in China, India
Action Construction Equipment, a cranes, material handling and construction equipment manufacturer based in Haryana, is close to acquiring both a company in India and a company in China for roughly US$27 million.

Dezan Shira & Associates provide foreign direct investment advice and services to clients in both China and India. The firm provides due diligence, incorporation, tax, accounting and other business services from twelve China offices and five in India. 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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