China’s goods heavy on nationalism

The flame of nationalism that was ignited after the border conflict between China and India in 2020 is slowing down. The testimony of this is being met by the ever-increasing sales of Chinese goods in the country.

Three major companies of China are in the country

There was no impact on the sales of the three largest Chinese electronics companies Xiaomi, Lenovo and Vivo mobiles in the country. Whereas it was believed that after the border conflict of 2020 between the two countries, the goods of Chinese companies would be significantly affected. These companies have told the Registrar of Companies that the sales of computer maker Lenovo has increased in India in 2020-21.

Slight drop in sales of Xiaomi and VIVO

However, there has been a slight decline in the sale of smartphone makers Xiaomi and Vivo. Lenovo has grown its business despite not getting approval from the Department of Industrial Policy and Promotion (DPIIT) to participate in government tenders directly. According to industry experts, the lockdown due to Kovid-19 in 2020 and the lack of components affecting product supply has affected Xiaomi and Lenovo.

Xiaomi’s revenue is Rs 35,504 crore

According to a Registrar of Companies filing, the country’s largest smartphone maker Xiaomi Technology India posted a 6% decline in revenue for the year ended March 2021 at Rs 35,504 crore. Vivo Mobile India’s earnings fell one percent to Rs 24,724 crore. Chinese smartphone company Oppo Mobiles has not yet submitted its financial details.

Lenovo’s earnings up 14%

Lenovo India’s total income grew by 14% to Rs 10,389 crore in FY21. However, the company said that it cannot directly participate in the public procurement tenders as it is yet to receive the approval of DPIIT.

Clashes took place in Galwan Valley

India had revised the public procurement norms in July 2020, soon after a deadly skirmish between Indian and Chinese armies in the Galwan Valley. Under this, bidders from China and other countries sharing land borders with India require additional approval in the form of pre-registration with DPIIT for bidders to participate in government tenders.

Vivo made a profit of 552 crores

In FY 2021, Vivo became a net profit making company with Rs 552 crore, while in FY 2020 it had a net loss of Rs 348 crore. However, Xiaomi’s net profit declined by 31% to Rs 275 crore in FY21, while Lenovo India’s net profit declined by 17% to Rs 59 crore.

India-China relations were strained in 2020 due to border skirmishes and stricter rules for Chinese companies, including the banning of several mobile apps by the Centre. Even social media was flooded with anti-China rhetoric.