In recent news reported by the Indian media outlet “Economic Times”, the Chinese Communist Party (CCP) has significantly tightened the approval process for business visas for Indian executives, with a rejection rate reaching as high as 95%.
Several Indian executives from affected companies have stated that even Indian companies with long-standing and deep collaborative relationships with Chinese enterprises are facing rejections when applying for business visas. This has forced businesses to relocate important managerial meetings originally planned in China to countries like Singapore, Thailand, Malaysia, or Hong Kong.
According to the report, those impacted include Indian executives involved in bilateral business expansion, engineers, technical experts, sales and management teams, and even some Indian employees of Chinese companies are finding it difficult to obtain visas.
On Saturday, August 22, Indian Foreign Minister S Jaishankar mentioned that the Indian government has raised concerns with the Chinese authorities regarding the challenges faced by Indian corporate executives in obtaining business visas for China.
An insider revealed that a leading Chinese smartphone brand has shifted its business meetings with trade partners from Shenzhen to Thailand since the majority of Indian participants, including company executives, have been unable to obtain visas for over two months.
The report also mentioned that another Chinese smartphone brand, Realme, is contemplating relocating its trade negotiations from China to Thailand.
A major Indian automotive components company is currently holding a meeting with its Chinese counterparts in Singapore. This Indian company is a joint venture with a Chinese company and the two have a technology cooperation partnership.
Furthermore, a large Indian original equipment manufacturer for electronic products has moved some of its meetings to Singapore and Hong Kong due to its leadership failing to secure Chinese business visas.
A CEO of a leading electronics manufacturing company, who requested anonymity, informed the “Economic Times” that “the rejection rate for Chinese visas has now reached 95%. Even reapplying for visas has not been approved. It’s difficult even for Indian executives of Chinese companies to obtain visas.”
The report highlighted that even Indian artificial intelligence startups are facing visa issues when traveling to China.
The border clash between India and China in early 2020 led to a deteriorating relationship following military standoffs and heightened border tensions. The Modi government imposed bans on numerous Chinese applications operating in India and tightened investment regulations for Chinese companies, requiring all Chinese foreign direct investments to receive approvals from multiple departments.
Although New Delhi later relaxed visa restrictions, Beijing’s recent visa measures have exacerbated the challenges faced by businesses from both countries.
The State Council of China has issued the “Regulations on Exit and Entry Administration” (State Council Order No. 841), set to be effective from September 15. This regulation will raise compliance requirements for applicants, guarantors, and immigration agencies, strengthen enforcement mechanisms, and enhance accountability.
Indian business executives have expressed their concerns over recent rejection rates to the Indian Ministry of Heavy Industries and Public Enterprises, as well as the Ministry of Electronics and Information Technology.