Why Ali is pausing its investment plans in India

According to the latest news, Alibaba has suspended its investment plan in India, and will not consider investing in India for the shortest time of half a year, which means that the restart of the investment plan in India will be as soon as March next year. What is the reason for Alibaba's abrupt suspension of its investment plans in India during this time period?

One. Strategic adjustment made in response to changes in the international situation. As we all know, since the beginning of this year, Trump has issued orders by administrative means to suppress Chinese Internet companies including Huawei, Tencent and Alibaba, and has joined many US allies to boycott these Chinese Internet companies in an attempt to obstruct the global development of these Internet companies.

India, as a hardcore ally of the United States, naturally obeys and responds positively to this US policy, banning the apps of these Internet companies in China, precisely because of this unfavorable situation in the worldInvesting in India as originally planned would be a very risky investment. It is precisely because of this that Ali has made corresponding strategic adjustments and suspended its investment plans in India.

Two. China-India relations are unclear. India's economic development in recent years has been good, which has undoubtedly increased its self-confidence and has begun to dream of becoming a great power again.

Since the beginning of this year, the continuous provocations on the border between China and India have caused Sino-Indian relations to deteriorate. In this case,It would undoubtedly be unwise for Ali to continue his investment plans in India

Three. The epidemic situation in India has worsened. The epidemic in India is becoming more and more violent, and the number of new daily infections has ranked first in the world for three consecutive weeks, basically hovering around 70,000 people per day, and there is a growing risk of worsening.

Limited to the epidemic situation in India, if you invest in India at this time, it is obvious that the conditions are not ripe and the risk is very high.

The development of enterprises not only requires a good investment environment, but also needs a harmonious relationship between countries, and also needs to pay attention to the right time, place and peopleIf one of the conditions is not met, it may cause investment failure, so it is understandable that Ali will suspend its investment plan in India this time.

The reason for the suspension is due to the recent tensions between China and India, which have also imposed many restrictions on Indian imports of Chinese products and Chinese companies doing business in India, in response to calls for a boycott of China.

At present, Alibaba has not responded positively to this matter. However, relations between China and India have cooled rapidly during this period, and India has imposed many restrictions on Indian imports of Chinese products and Chinese companies doing business in India.

India is not familiar with it, and our country is not bad for them, and they always make some messy situations, and Ali also suspended it because the relationship between the two sides was a little tense.

India** has taken measures to compete with Chinese companies in business. At present, India** has taken measures to compete with Xiaomi, and Alibaba has suspended its investment plans in India to avoid such an arrangement.

Because the Indian side has also imposed many restrictions on Chinese products imported by India and Chinese companies with operations in India, which has hindered many of Alibaba's investment plans and development prospects in India, the best way to stop losses is to suspend investment in time.

Because India is now very unfriendly to foreign investment, Ali wants to avoid unnecessary losses.

Alibaba has suspended its investment plans in Indian companies and will not invest new money for at least six months.

In fact, Ali's reaction was much faster.

As early as a few months ago, Ali had a product with a very large number of users in India, and the project team was suddenly disbanded, and the personnel had been assigned to other departments.

Ali should have had the news early on and made a decision.

This is equivalent to throwing hundreds of millions of dollars directly? All in all, it's very crisp.

The future of de-globalization is the trend.

There are a few countries that are clearly likely to have conflict, and they need to be cautious in doing business.

A brother who has been doing overseas projects for a long time told me that they (also a large state-owned enterprise) stopped doing projects in India two years ago, and that Chinese companies like them have never heard of making money in India.

On the one hand, there is the issue of state relations, and on the other hand, the Indians are too powerful (do not follow the rules) and are cheated too much.

Relatively speaking, Indonesia and other Southeast Asian countries are relatively better to erect their hands.

After all, doing business overseas requires a strong deterrent behind it, and these countries are more sober in front of China and understand that the power is in the **.

I am not optimistic about investment in India for a long time, and I need to be cautious about existing domestic investment, and I don't know if it is easy to recover costs.

It is very interesting that India has said that if India had won the war in 1962, or had drawn, it would not be so hostile to China today.

There must be an outlet for this complex emotion at the root.

If this sentiment is not resolved, it will not stabilize for the next decade.

The heart potato segment that can't afford to lose is the root of the problem.

It's just different from what India expected, and it is likely that this result will make India completely dead and conquer it.

We're good at getting others to give up their illusions again and again.

Although, in fact, this is just a waste of time for China.

It's a bit like someone who thinks they're your biggest rival, but you don't seem to know them well.

In fact, there will be an impact, this year's environment has affected the economic development of many countries, no way, the real economy has almost been affected, if Alibaba stops investing in India, India's economy will be affected. So far, the new coronavirus pneumonia epidemic is still wanton all over the world, and under the blow of the epidemic, the economic development of almost every country has suffered a waterloo of its own economic development. According to the data reported by foreign media recently, we can see that among the world's major economies, India's economic situation is the most miserable, in India's just-released second quarter economic reportIndia's economy fell year-on-year, the largest decline in the country's history.

India's GDP plummeting this time is actually inseparable from the spread of the new crown pneumonia virus, according to relevant reports, India's economy in many industries has been severely hit. These include the mining, manufacturing and construction industries, which have not only been traumatized, but most importantly, the high unemployment rate in India has led to a significant reduction in national consumption, which has affected industries such as manufacturing, which can be said to have created a cycle that is not conducive to the Indian economy. However, this is also unavoidable, because during the most serious period of the epidemic in our country, the unemployment rate also reached a very high pointAlibaba can bring more opportunities to the people of India.

The main culprit of India's serious economic downturn, everyone actually knows that the epidemic, not only that, but even the economies of the United States and China have been affected, the current policy position of the United States is to increase the balance sheet with huge debt, of course, these debts are mainly generated for emergency release of funds, not any kind of investment to improve productivity, the dollar has been ** so far this year, this kind of effort by the United States to the economic crisis is actually very sad, because this practice is likely to rekindle inflation later.

In any case, the current global economy is in a state of depression, this is not a matter of one country, it requires the joint efforts of all countries, if individual countries continue to engage in unilateralism in their own right, then the country's economy will continue to develop in the opposite direction in the near future.

A few days ago, Alibaba suspended investment in Indian projects, which was caused by the relative deterioration of India's own investment environment. <>

India is one of the emerging developing countries, in recent years, many enterprises are very favored by the Indian market, have built factories in India to invest, but India can not give enterprises a stable investment environment, can not accept these enterprises in an inclusive attitude.

India's domestic corruption problem is serious, and the investment of enterprises cannot play a full role in India, and India has not taken an attitude to solve the problem and allowed it to develop maliciously, but in terms of its policies towards these foreign enterprises, India has been capricious and wantonly suppressed the legitimate rights and interests of these enterprises in India. This has forced investment in India to be suspended. <>

India's foreign environment is also quite bad, arbitrarily provoked border disputes, itself is in an extremely embarrassing situation, always trying to provoke others, the continuous deterioration of the foreign environment has also brought great uncertainty to India's domestic investment environment, and the Indian market can not be sufficiently tolerant of these foreign enterprises. It is also reasonable for companies to suspend their investment in India. Assess the investment climate in India in recent years and suspend investment in India.

It was also expected by everyone.

In fact, in addition to Ali, in recent years, many companies investing in India have begun to suspend projects, or withdraw investment, India is still facing a variety of problems, these problems are not conducive to enterprises to invest in India, India's current nationalist sentiment is relatively serious, the Indian people have nowhere to vent the domestic pressure, only to turn the spearhead to these companies to invest in India. This is also a big reason why these companies are unable to invest in India. <>

No matter where you invest, the environment of the place itself is extremely important, and having a good environment that is easy to invest in will attract some enterprises. On the contrary, if you can't even deal with your own problems, then how can others step on this mud pit, and if India wants more companies to invest in India, it must make changes to its own environment.

First of all, it released Ali's uncertainty and distrust of India's local investment, and there is a risk to Indian investment, because India's first suppression of Chinese enterprises, not to mention that investment will not benefit from being attacked, and investment will have to be reconsidered.

Ali is pessimistic about India's investment in recent years, such as Ali's investment in India's food delivery platform, because a large number of merchants have withdrawn from the company's losses, so Ali wants to seek a more stable investment channel.

1. India has been led astray by the world, India has a large number of foreign-funded enterprises, and India's behavior has led to the withdrawal of foreign capital and the loss of a large number of people in India.

2. India's own development is not strong, but it relies on foreign investment, and even all kinds of commodities in life are basically foreign, and it is India itself that suffers in the end in the conflict with China.

The uncertainty of India's economic environment and the recurrence of policies have had a negative impact on companies looking to invest in India for a long time. The long-term economic linkage with politics is a problem facing India's real economic environment.

One. I think this matter is very normal, because Ali is a Chinese company, if there is a conflict between India and China, He Sheng is like this, Ali will definitely not invest in India, no one likes to invest money in the opponent's land, if there is a conflict with you on the other side, there is a conflict, will you still be friends with the other party? Do you want to work together?

Isn't that what it means? , India has a conflict with China, Ali will definitely not invest in India, and even they will have to invest in another place. <>

Two. It's not even that Ali has stopped investing in India, and India has also restricted the goods exported to China, so ah, Ali will definitely not invest in India, because the two sides have already clashed, there are contradictions, if you continue to invest, isn't that helping the enemy to fight China? Smart people don't do this kind of thing.

Three. Besides, India is so poor that it has to pay a lot of money to invest there, and it is precisely because of this conflict and contradiction that it will not invest in India, so it will save a lot of resources that can be invested in other places, and we have many allies in China, so why worry that there is no place to invest, why do we have to invest in India? The conflict between India and China is India's loss, and we don't have much to lose, and our friends and allies are particularly numerous, so why worry that there is no place to invest?

Four. We can invest in friendly countries that we have made rich and prosperous. We will not do anything to help our opponents, this is our principle, friends come from afar, we have wine and food to entertain them, those tigers, leopards, jackals and enemies come, we have guns to entertain them, with us as friends, we can promote each other's economic development and the development of science and technology, we are enemies, we will fight them, never dare to violate the majesty of our Chinese nation, this is our principle.

I think it's normal, because Abi Xianli is a Chinese company, if there is a conflict between India and China, Ali will definitely not invest in India, no one likes to invest money in the opponent's land, if there is a conflict with you on the other side, there is a conflict, will you still be friends with the other party?