Fight against China: India bars Chinese companies from public procurement bids

New Delhi : India on Thursday night tightened its rules against Chinese companies and barred their participation in the public procurement bids without approval from competent authorities on the ground of defence and national security.

It however exempted such countries to which India provides lines of credit or developmental assistance, thus effectively confining the restrictions to China and Pakistan.

While the private sector has been exempted from any such restrictions, these will be applicable on all public sector banks and financial institutions, autonomous bodies, Central Public Sector Enterprises (CPSEs) and Public Private Partnership projects receiving financial support from the government or its undertakings.

"The Government of India today amended the General Financial Rules 2017 to enable imposition of restrictions on bidders from countries which share a land border with India on grounds of defence of India, or matters directly or indirectly related thereto including national security," finance ministry said in a statement.

The Finance Ministry announced that the new rules will be applicable on all future biddings.

“In respect of tenders already invited, if the first stage of evaluation of qualifications has not been completed, bidders who are not registered under the new Order will be treated as not qualified. If this stage has been crossed, ordinarily the tenders will be cancelled and the process started de novo," it added.

India has cancelled railway and road tenders secured by Chinese companies and has barred 59 Chinese apps, including TikTok, on national security grounds.