Fosun health deals pay price for border tensions

Business | 16 Jul 2020

Kevin Xu and Reuters

Chinese conglomerate Fosun has backed out of discussions to invest in two Indian health-care companies, as Sino-India relations deteriorate, Indian business newspaper The Economic Times reported, citing sources.

Fosun had proposed terms for acquiring a stake in Mumbai-headquartered dialysis services chain Apex Kidney Care and a Bengaluru-based hospital, the reports said. The two investment deals were worth over US$300 million (HK$2.34 billion) in total, according to sources.

Fosun said it will continue to cultivate its existing regional markets as well as the emerging markets such as India, according to the reports.

This came as India last month outlawed dozens of Chinese apps, including ByteDance's popular video-sharing app TikTok and Tencent's (0700) messaging app WeChat, saying they posed a "threat to sovereignty and integrity."

Chinese firms have faced hostility since a border clash that killed 20 Indian soldiers, with New Delhi intensifying scrutiny of mainland imports and any funding from China.

In April, India said it will screen all foreign direct investment from countries with which it shares a land border, a move it said was aimed at staving off takeovers when asset prices are depressed during the coronavirus pandemic.

The Chinese government described the policy as discriminatory.

India also shares land borders with Pakistan, Bangladesh, Myanmar, Nepal and Bhutan.

However, Chinese firms' existing and planned investments in India stand at more than US$26 billion, research group Brookings said in March.

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