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History of the Orchid Pavilion
Editor|History of the Orchid Pavilion
Recently, India has reported another demon operation.
According to rumors in the domestic photovoltaic industry circle, India's tax department is conducting tax investigations on more than 40 mainstream photovoltaic companies from China.
The reason given by the other party is suspected of tax evasion, and the scope is extremely wide.
Although the current inquiry is mainly and does not involve arresting people, it has caused many people in the industry to have a bad premonition.
After all, the Indians set up traps for foreign capital and forced fines, and everyone was quick to scream.
So, what "riot operations" has India done in the past? And why do multinational companies go forward and die without repentance?
"Miraculous" Indian law
"India earns money and spends Indian flowers, and they want to take it home."
In recent years, this phrase has become the truest portrayal of the survival of any foreign-owned company in India.
Since the beginning of this year, India has frequently imposed penalties on foreign companies, which once triggered a global discussion.
Among them, Chinese companies are particularly "caring", and the typical one is smartphone manufacturer vivo.
As recently as October 10, Indian law enforcement arrested a VIVO employee abroad on suspicion of money laundering. On the day of the incident, vivo said that it strictly abided by local laws and regulations and did not violate the law.
For a while, everyone pointed to the problem, India is deliberately looking for fault, after all, this is not the first time this has happened.
Since the Sino-Indian border conflict, the frequency of restrictions and suppression actions taken by Indian officials against Chinese companies has increased significantly, especially against Chinese smartphone companies.
This includes charges against these businesses, raids, freezing of funds and, most recently, arrests.
The main thing is that these actions seem to have a gradual escalation.
As early as July, Wistron Wistron fled India in embarrassment.
You know, Wei Chuan is the foundry of the American technology giant Apple, in order to cater to the de-China strategy of the United States, the new factory investment in India.
At one point, the United States and India were cheering. One is that China will lose its downstream industrial chain, and the other believes that India is about to rise in manufacturing.
But soon reality hit them in the face.
Because India simply cannot find a large number of high-quality workers, many industrial standards out of the production line are completely substandard.
Just the early employee training has made many enterprises bigger. Moreover, India's domestic infrastructure is in a mess, and related supporting facilities are impossible to talk about.
The most important thing is that the laws and languages are different between different states in India, and regional and ethnic contradictions are even more difficult to return, and unimaginable external difficulties have brought unprecedented disasters to the development of enterprises.
Moreover, for those familiar with the Indian situation, Indian laws and regulations are extremely complex and often change at will.
This leads to one policy when enterprises invest in setting up factories, and another policy when they transfer profits.
The key is that this policy is particularly flexible, and even specifically to "pit" you as a specific enterprise, India can first formulate a law for you, which can be described as one enterprise, one law, one enterprise, one policy.
The chaotic governance in India has directly provided unprecedented convenience for the Indian government to blackmail foreign companies.
The business logic, legal framework pursued by the West, and a stable business and investment environment with Chinese characteristics are completely unworkable in India.
From top to bottom, Indian officials have tacitly assumed that all the profits and profits of your coming to India must be reinvested in the local area, and you must also train local people in the industrial chain.
In layman's terms, if you make money in India, you want to transfer it, and all the income is rich on paper.
Like the recent crackdown on Chinese companies, almost all of India's allegations have not been supported by substantial evidence.
The only reason for this seems to be to force Chinese companies to make unnecessary concessions and concessions.
The problem is that India is not specifically targeting China in terms of foreign companies, but all the global powers are wet, and the multinational companies in the United States, Britain, and France have all suffered losses.
It's like Microsoft, which was fined Rs 700 crore by the Indian tax authorities in 2008.
IBM was fined Rs 5,357 crore by India in 2009.
British telecoms giant Vodafone was also fined $2 billion by India. Nokia fined Rs 2,080 crore.
There is also the worse South Korean POSCO, as one of South Korea's top ten consortiums, has been deeply cultivating the market in India for 11 years, and the result is that the dime of the pit has not been earned, and the equipment investment is all still in India, which can be described as a loss of bottoms.
Not only that, Xiaomi, OPPO, Foxconn, SAIC, Li Ning, these companies that do not believe in evil have all been taught by India one by one, and investment leaves a bare ass to get out.
Many multinational companies talk about India is color change, and once pulled India into the blacklist.
Why are there still people who do not believe in evil when pitted?
It is strange to say, why are there so many head iron cases in front, and there will be multinational companies one by one?
This thing is a truth with the real telecom fraud, feel that the profit is high, feel that their ability can avoid the last knife?
India has surpassed China in terms of population and has become a veritable most populous country, as the country with the largest single population market, and its development is not perfect, this is a big cake.
In particular, many countries have seen the tremendous changes after China's reform and opening up. It is particularly popular to be optimistic about China and multinational enterprises with a layout in China.
They have regarded India as the next China, believing that the competition pressure is low if the development is not perfect and the return rate is high, and they are betting that India's future can become a China.
However, year after year, repeated attempts have made too many people's heads bleed. Not only has the credibility of the Indian government been reduced to a low point, but even local businesses in India have lost their international credibility.
Those who do cross-border trade know that Indian customers must pay the full amount for the goods before they ship them.
This seemingly unreasonable habit is actually the experience that many people have summed up with blood and tears.
From top to bottom, there are no rules at all. This may seem like a bargain in a short period of time, but once its credibility is completely lost and it is pulled into the "blacklist" by the global trading system, India will surely suffer the consequences.
Because a good business soil can only be established for many years, once a bad label is branded, it will invisibly increase the operation and circulation costs of various enterprises.
It also makes India's ambition to become a global manufacturing hub look more difficult.
postscript
Play carefully, the routine of fattening foreign companies as pigs cannot be commonly used, otherwise it will really become a child who shouts wolves.