No easy entry for India Inc in China as Beijing tightens business visa rules

New Delhi|Kolkata: China has tightened issuance of business visas to Indian executives to such an extent that even companies with “advanced partnerships” are facing visa denials, forcing them to shift crucial executive meetings to Singapore, Thailand, Malaysia or Hong Kong, said senior officials at several affected companies.

India Inc’s predicament is of significant concern since these visas are for executives, engineers, technical specialists, and sales and management teams engaged in furthering bilateral business.

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A leading Chinese smartphone brand had to move a business meeting with trade partners to Thailand from Shenzhen, after most of the prospective attendees from India failed to secure visas for more than two months, including some company executives, said a person familiar with the matter.

Chinese smartphone brand Realme too is reportedly considering moving its festive trade meet to Thailand from China.

Not Even for Indian Staff of China Cos

An Indian auto parts major, having joint ventures with Chinese firms for technology collaboration, is holding meetings with its Chinese counterparts in Singapore.

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Meanwhile, a large homegrown electronics contract manufacturer has also moved some meetings to other locations such as Singapore and Hong Kong after its leadership failed to get Chinese business visas. “Chinese visa rejection rates have gone up to 95%,” said the chief executive of a leading contract electronics manufacturer, requesting anonymity. “Re-applications are not cleared. Even Indian executives of Chinese companies are not getting visas easily.” It’s deja vu for domestic companies, as for three years through 2025, most such meetings took place either in third countries, or through video-conferencing, as India had restricted the issuance of business visas to Chinese companies.

Relations between the neighbours deteriorated after the Galwan valley clash in early 2020, and the subsequent military standoff and tensions on the border. New Delhi, at the time, banned a large number of Chinese apps operating in India, while also tightening investment rules for that country’s firms under Press Note 3 regulation, which, even now, mandates multi-ministry clearances for any Chinese foreign direct investment.

While New Delhi has since relaxed the visa restrictions, the latest steps by Beijing have exacerbated woes for corporates in both countries.

Executives said they have conveyed their concerns to the nodal ministries of heavy industries and electronics & information technology. ET reported earlier this month the difficulty Indian executives are facing in procuring Chinese visas.

China has issued regulations on exit and entry administration by State Council Decree no 841, with effect from September 15, which will introduce enhanced compliance requirements, stronger enforcement mechanisms, and greater accountability for applicants, sponsors and immigration intermediaries.