Indian authorities are in talks with companies to review new foreign investment rules designed to guard against opportunistic Chinese takeovers, after the proposed regulations spooked investors and threatened to cut off crucial funding for tech start-ups.
Countries including Australia and Germany have unveiled measures to protect companies hit by the coronavirus pandemic, while the EU has urged member states to build stakes in companies to block Chinese acquisitions.
But New Delhi’s expansive order, which the government implemented without warning or public consultation, has triggered uncertainty among Indian companies and venture capital firms that rely on Chinese financial backing.
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