Dixon Technologies' China playbook faces crucial Centre's FDI test

Dixon Technologies (India) on Tuesday signed two agreements — a joint venture (JV) and an acquisition, both with Chinese companies — in what could be a test case for the government on how to handle such proposals under foreign direct investment (FDI) rules for Chinese firms, following the implementation of Press Note 3.

 

The note states that any investment or transfer of ownership from countries sharing a land border with India, or where the beneficial owner is from that country, must go through the government approval route. This includes China — and many proposals of Chinese companies wanting to come