Capital flight from China: Ram Madhav

NEW DELHI: There will be a capital flight from China in the post-Covid-19 period, and India could emerge as an attractive investment destination for global giants shifting business from the neighboring country, BJP Secretary General said Sunday.

His comments came amid reports that a sizable number of global giants, including Japanese and American companies, are considering moving their manufacturing facilities to other countries from China in the wake of the.

In the post-Covid period, there will be a flight of capital from China, and India will undoubtedly be an attractive destination for them, Madhav told PTI in an interview.

He said that Asian democracies like Singapore and South Korea, along with India, have given a new example that you don't have to be authoritarian to handle such a big crisis.

The top BJP leader said it will be interesting to see what course China takes in the post-pandemic phase.

What course China will take is a big million dollar question.

The way the Chinese leadership conducted itself during the crisis has led the world to believe that it has not done enough ... Will the Chinese leadership think again about the entire system, Madhav said.

United States President Donald Trump has repeatedly tried to blame China for his handling of the pandemic that was first reported in China's Hubei province before it spread to various parts of the world.

The virus has infected 3.4 million people and killed more than 2.44,000 worldwide, in addition to destroying the economies of a large number of countries.

Japan has recently indicated that the country's top companies may leave China in light of the pandemic. The Japanese government has already announced an economic stimulus package to help its companies change their base in China.

Several countries are considering measures to protect their economic interests in various countries.

Last month, India tightened pre-authorizations for foreign investment from countries that share the land border with India, in a move to curb opportunistic acquisitions of Indian companies by Chinese companies after their valuation fell due to the coronavirus-induced economy. recession

China criticized India for the new policy, calling it discriminatory and demanding its revision.

Madhav said the world will closely monitor the upcoming Communist Party of China Congress starting May 22 and how it addresses all of these issues.

The Indian economy has also been affected by the pandemic. In recent days, Prime Minister Narendra Modi held a series of meetings to discuss strategies to attract foreign investment, promote local manufacturing, and boost the economy.