GT Voice: What else does China-India trade need besides talent?

India Illustration: Liu Rui/GT

The Indian government is considering issuing visas to Chinese workers in some strategic sectors to address skills shortages, boost domestic manufacturing and advance technological progress, VOA Chinese reported on Saturday.

There is no denying that India’s willingness to ease its visa restrictions for Chinese workers is a positive development for China-India economic exchanges. This potential policy adjustment is likely to alleviate some of the problems faced by India-based global manufacturers who rely on Chinese engineers and technicians to install or operate their plants, while Chinese workers face difficulties in obtaining Indian visas.

However, to fully advance mutually beneficial cooperation between the two countries, a number of issues such as investment restrictions need to be resolved. China’s skilled workforce is of great value to India’s economic development as it provides advanced technology and management know-how, which is conducive to the modernization of local industries. However, for India to fully tap the potential of Chinese talent, it needs to show greater policy openness, especially with regard to restrictions on Chinese investment.

For years, India was considered a promising destination for foreign investment because it offers a large and growing consumer market, strategic location and relatively low labor costs. However, the lack of skilled labor has become a major obstacle hindering the country’s ability to attract more foreign investment from other countries. It is no secret that India has a great need for skilled Chinese labor, a clear indication of the challenges the country faces in boosting its manufacturing and economic growth.

Last year, for example, Foxconn reportedly sent more Chinese workers to its iPhone plant in Sunguvarchatram to increase production and prepare the plant to manufacture Apple’s upcoming flagship iPhone 15.

The presence of Chinese workers in Indian factories not only highlights the skills gap but also the competitiveness and attractiveness of Chinese skilled workers. China’s technical talent, especially in areas such as information technology, manufacturing and infrastructure construction, offers valuable expertise and practical experience that India can greatly benefit from. These skilled workers not only bring advanced technology and management practices but also help improve the skills of Indian workers through knowledge sharing and technology transfer, ultimately accelerating the modernization of India’s manufacturing sector.

In this sense, an easier flow of talent will be an important aspect of promoting exchanges and cooperation between China and India. However, the challenges between the two countries go beyond visa issues and also involve market access and investment restrictions. India must not select topics for discussion based solely on its own interests, but must jointly address issues such as visas, market opening and investment protection.

India has been hindering Chinese investment in its market for some time, hindering economic cooperation and damaging India’s reputation as a foreign investment destination. However, the complementarity and reciprocity of China-India economic and trade cooperation cannot be overshadowed by discriminatory practices. The recent growth in bilateral trade also reflects the real development needs of both countries. Only by improving its business environment and ensuring fair, transparent and non-discriminatory treatment of Chinese companies can India further improve its ability to attract foreign investment and advance its manufacturing industry.

In addition, as bilateral trade between the two countries deepens, more Chinese workers may come to India. Ensuring and protecting their legitimate rights and interests also requires joint efforts by China and India.