India Advises Indian Businesses against doing business in Chinese City

Last updated on Feb 22, 2012

Posted on Feb 22, 2012

Things are heating up between India and China.  The latest incident – after many from China like actions regarding bureaucrats from Arunachal – is the Indian Advisory to Indian traders against doing business in Yiwu – near Shanghai.

Efforts were on to quietly shift them to Shanghai. But the controversy, which left an Indian diplomat in hospital first in Yiwu and then in Shanghai over the weekend and made the Indian government summon a senior Chinese diplomat in New Delhi on Monday, is likely to leave a negative impact on business; the Indian Embassy in Beijing on Tuesday issued an advisory for Indian businessmen warning them against doing business in Yiwu, located some 300 km from Shanghai.
“Indian traders and business men are hereby cautioned not to do business with Yiwu in Zhejiang province. They should be aware that when there are trade disputes with Yiwu, the Indian businessmen/traders can be illegally held under detention and mistreated by Chinese businessmen there. Based on experience, there is no guarantee that legal remedies will be readily available,” the advisory said.
The advisory went on to warn – with the incident involving Shyamsunder Agrawal and Deepak Raheja being a case in point – that, “…experience suggests that there is inadequate protection for safety of persons. All people who have business/trade with Yiwu are cautioned against doing business there and all people who do not have business/trade with Yiwu are requested to be careful that they do not do business with Yiwu. Indian businessmen are cautioned to stay away from Yiwu.”
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