China: Agencies Uncover Visa Misuse by Firms

National security planners have found several irregularities in the operations of Chinese companies and the import of Chinese products into India, including improper visa documentation, tax evasion, and bypassing scrutiny by the Ministry of Home Affairs (MHA). Indian intelligence and financial agencies have also discovered significant misuse of the e-visa scheme before 2020, with some Chinese nationals overstaying their visas and traveling to sensitive border regions like Arunachal Pradesh and Jammu & Kashmir.

Officials from three ministries revealed that the current visa regime is being exploited by some Chinese companies through mis-declaration of visa categories. For example, business visas are being used for activities that require employment visas, such as the installation and commissioning of industrial units. This, coupled with the import of billions of dollars worth of goods from China, is negatively impacting local industries, as some Chinese firms claim “Make in India” benefits while sourcing up to 80% of parts from China.

The issue also involves Chinese firms operating in India for nearly two decades. Officials have requested anonymity and have not named these firms until formal complaints are registered and action is taken.