China has allowed FDI on different terms and conditions. On other - TopicsExpress

China has allowed FDI on different terms and conditions. On other side, China has higher efficiency due to better less corrupt judiciary, less corrupt police, recruitment by written exams, no interviews, starting phase of jury system etc. FDI in India depends on what kind of agreement the Govt Has made.The china Govt has allowed FDI on the condition that it wont be the responsibility of the Govt Of China to Pay dollars to the company if the latter wants to take the profit earned by selling their products in china back to its own country.All what they can take back to their country is the profit(dollars) they have earned by exporting the goods produced by them on Chinese land to other countries.So basically Chinese money does not go to their country but the money of a third country where they have exported goes to their country. So china is fine and this FDI for india is dangerous But in India its the responsibility of the GOI to pay Dollars to the Foreign countries if it wants to take the profit earned on the Indian land also back to their country.Hence our country suffers economic loss. China keeps most of the things secret .There ,On Paper Agreements are diffrent and Real terms and conditions are different. but pl see this to know how china deals with foreign companies. theatlantic/china/archive/2013/07/china-is-still-risky-for-foreign-businesses-but-the-rewards-are-too-great-to-ignore/278238/ Though a FDI attraction, for its huge demand potential, India is lagging a little behind with economic liberalization and reforms, but is actually very good when it comes to profit repatriation. India allows free repatriation of profits once all the local and central (tax) liabilities are met. In fact, throughout history, there has never been an incident that India has failed to provide foreign exchange for repatriation. Investment exit decisions are also fairly simple, and profits can be repatriated once all the tax debt and other obligations are satisfied. Problems only arise when people evade or circumvent the already simple rules, or do so out of ignorance. buzzle/articles/profit-repatriation-the-foreign-direct-investment-incentive.html

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