Bengaluru: As border tensions escalate between China and India, the Uttar Pradesh government has decided to put on hold passing on special incentives to four Chinese companies executing big ticket investments collectively worth more than Rs 13,000 crore in the state, as reported by Economic Times. 

The website added that the four Chinese companies — mobile phone maker Vivo, appliances maker Haier, component maker Holitech and battery maker Sunwoda — have all announced investments worth more than Rs 1,000 crore individually, qualifying for special incentives ranging between Rs 150-250 crore, under the state’s Electronics Manufacturing Policy of 2017. The policy was part of a vision to develop the state as a hub for electronics manufacturing.

The website also quoted an official as saying, “The companies are carrying on their production and planned expansion and it is not that the investments that have come in are being cancelled or new investments being discouraged. We are also giving the promised incentives, but it is difficult to decide on giving the special incentives in such a climate.” 

A note on border tension with China: 

2 days ago, defence minister Rajnath Singh addressed the Parliament and added India is strong enough to guard its borders strongly.

He said, "I want to assert that we are committed to peacefully resolving our disputes along the borders. To achieve this, I met my Chinese counterpart of September 4 and had an in-depth discussion with him. I clearly put forth our issues in front of the Chinese representative which is their aggressive behaviour and attempts to unilaterally change the status quo. I also stressed that we want to resolve this issue peacefully and we want the Chinese side to work with us on it. I also clarified that we are determined to protect Indian sovereignty and territorial integrity."

He also added that the Union government has allocated sufficient budget for the development of the infrastructure.

"This has also been possible because the government has prioritized border infrastructure in the last few years. In the past few decades, China has excessively enhanced its border infrastructure due to which their border deployment has also increased. In response, our government has also doubled our budget infrastructure budget. Consequently, several roads and bridges have also been built in border areas. Not only has the local population benefitted from it but our armed forces have also received better logistical support."