Huawei, Alibaba among 7 Chinese companies with links to Chinese Army could face the music

Chinese global giants like Huawei, Alibaba having a direct or indirect link with the Chinese Army and based in India could soon face action.

These companies are among seven Chinese firms which the Indian government sources have highlighted are having deep links with People's Liberation Army (PLA)

The Chinese companies are Xindia Steels, Xinxing Cathay international, China electronic technology group, Huawei, Alibaba, Tencent, SAIC motor corporation. 

Also read: Chinese apps have been banned in India; Is Huawei next?

Indian government sources highlighted that "these companies are under watch and could face potential action".

Chinese telecom company Huawei reported a revenue of Rs 12800 crore in FY 2018-19 from its Indian operators. The company founded by Ren Zhengfei who was former deputy director at the PLA's engineering corps has been banned by US, Japan, UK and Australia from their 5G networks.  

Alibaba, Baidu, Tencent, sources highlighted, are part of China's military-civil fusion and artificial intelligence projects. Sources pointing to the 2019 report of US-China economic and security review commission report which said under China's military-civil fusion policy "government-supported mechanisms, including venture capital (VC) funds...(are used for) leveraging the fruits of civilian innovation for China’s defence sector.” 

Alibaba has invested in Indian startups including popular ones like PayTM, Zomato, Big basket, Snapdeal, Xpressbees. Tencent has made mega investments in Indian tech space including $400 million in Ola cabs, $700 million in Flipkart.

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But it is just not only tech or mobile sector where Chinese companies with links with the Chinese army are present. SAIC Motor Corporation, a Chinese state-owned automobile company headquartered in Shanghai in Shanghai sells Sports utility vehicle, MG Hector, in India. One of the company's subsidiary is Nanjing Automobile, which was previously a vehicle servicing unit of PLA.

Xinxing Cathay International Group a metal products manufacturing country is present in India in various forms including a Joint Venture Xindia Steels Ltd. Employees of China Electronics Technology Group Corporation (CETC) have been convicted of military espionage and it provides technology which is believed to be used for human rights abuses in the restive western province of Xinjiang in China. The company has invested Rs 320 crores in a manufacturing facility in Andhra Pradesh in 2018.

This comes even as India last month banned 59 Chinese apps including popular TikTok after a violent face-off at Line Of Actual Contol in Eastern Ladakh in which 20 Indian soldiers died. Chinese refused to acknowledge casualties on its side