Startups with investment from China by Chinese investors are posing a serious threat to sovereignty & national security like China Products.
Draining out Indian money to China.
Data security and sensitive personal information of Indians at risk.
Threat to sovereignty & national security like China Products
Exploit Indian talent from IITs, IIMs to extract money from India to China
Indian founders in chinese funded startups are ultimately reduced to minority stakeholding/shareholding/ownership and are finally forced to resign or bought out or kicked out on various reasons. For example how flikpart founder was expelled out of flipkart by wallmart investors in flipkart.
The Indian founders have little or no say in major policy decisions of the company without approval from board member appointed by Chinese investors in Board of Directors of the company.
Chinese funded startups weaken Indian economy and strengthen Chinese economy by funneling money out of India.
Paytm-the biggest beneficiary of demonetization, is benefitting Chinese investors like Alibaba, Tencent etc.
Online classes edtech startups are biggest beneficiaries in covid-19 emergency. eg. Byju’s, Vedantu, Unacademy etc. However, indirectly these edtech startups are benefitting China on account of Chinese investment in these startups.
China funded startups will become another big headache for the country just like china products. Just like, entire country wants to boycott China products immediately but is finding it difficult to boycott China products. In the same way, the Chinese funded startups will become so difficult to boycott if we do not boycott such startups now.
Dr. R. Singh
Director Teaching Care Live Online Classes