India and China are locked in a tense diplomatic as well as military standoff after the border skirmish in the last week. The border tension seems to be impacting trade relations between the two nations, as Apple, Cisco, and Dell products are among the commodities from US firms trapped in Indias border disputes with China.
Although no government notice has been given, customs officers at the main Indian port have held containers from China for further clearances. The move to hold imports from China has mainly impacted Dell, Cisco, Ford Motor Co., and Foxconn. These companies haven’t responded to requests for comment.
The move comes in the wake of heightened tensions between India and China where at least 20 Indian soldiers were killed in border clash last week.
In a letter dated 23 June, the USISPF (US-India Strategic Partnership Forum), a lobby group representing American companies, told trade ministries about the possibility of business and manufacturing operations being disrupted by lack of clarity or delays.
According to sources familiar with the matter, USISPF said in a letter that authorities have abruptly stopped the clearance of industry shipments coming in from China and other destinations at most major ports and airports. This would send a chilling signal to global investors who look for transparency and predictability.
Commenting on the matter, India Cellular and Electronics Association (ICEA) stated that its Members were told to have a new review procedure on all consignments coming from China from the airports of Chennai, Mumbai, and Delhi. In a letter to the Ministry of Finance, ICEA urged the Mystery to intervene as the products for daily importers are usually cleared automatically.
Meanwhile, India restarts its factory operations after the nation-wide lockdown which was enforced to tackle the COVID-19 pandemic.