Indian Businesses Hit by China Visa Hurdles: What Happens When Key Staff Can’t Travel?

Business executives, engineers and technical specialists are reportedly facing increased scrutiny when applying for Chinese M visas, the category used for commercial and trade-related visits. There is no reported blanket ban on Indian business travellers.

The issue is the sharp fall in approvals and the increased uncertainty around applications. For companies that regularly send people to China, that uncertainty can become a business problem.

What Happened

A rejected application does not necessarily end the process. Companies can submit a fresh application, but there is no guarantee that it will be approved.

• Some Indian companies have told the Economic Times that only 20 to 40 per cent of their applications are now being approved, compared with near-complete approval rates in the past.

• Some firms have reported rejection rates as high as 95 per cent.

• Executives from companies in these industries have said that, depending on the business, up to 50 per cent of capital goods and parts can come from China.

Key Details

That can make even routine business trips difficult to plan. Executives may need to visit suppliers, engineers may need to work on equipment, technical teams may have to troubleshoot production issues and managers may need to negotiate manufacturing arrangements in person.

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Why It Matters

Some Indian companies are now moving meetings to Singapore, Thailand, Malaysia and Hong Kong when travelling to China becomes too difficult. It is less useful when someone needs to inspect a factory, install equipment or solve a technical problem on a production.

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What Reports Say

Coverage of the story so far points to:

• Continued reporting by India Weekly as more details emerge