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Maharashtra’s government has put on hold three Chinese direct investment plans worth 5,020 crore in response to Beijing’s aggression against India along the Line of Actual Control. These projects include one by Great Wall Motors, another by engineering firm Hengli, and a third under a joint venture between PMI Electro Mobility Solutions and China-based Foton. That this action was taken by a state ruled by a coalition that’s in opposition to the central government shows the strength of Indian solidarity against China.

The country has expressed its outrage in unison over the killing of Indian soldiers by Chinese troops. If Beijing was under the impression that it could exploit our internal wrangles of democracy to its advantage, it would have to think again. It’s true that states display rivalrous behaviour in attracting investment. But it’s also true that they’re ready to forgo these for a cause. Rejecting Chinese investment does impose a cost, though. So, while mixing business with geopolitics could sometimes work, administrations must not lose sight of its downside. For now, our best bet would be to woo investment from elsewhere.

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