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Swadeshi Jagran Manch: Rise of online Chinese cos alarming; ecommerce regulation in India

The Swadeshi Jagran Manch (SJM) has written to PM Narendra Modi asking that the government create barriers for Chinese companies operating in India, reports News18. Chinese companies should also not be allowed to log Indian user data, SJM said. This is because China refuses to ‘designate Masood Azhar as a global terrorist’, after Azhar’s Jaish-e-Mohammad terror attack killed over 40 Indian soldiers in Pulwama, Kashmir.

The SJM said that Chinese companies were making profits from Indian users and that India should not support China’s economic gain since it ‘supports such terrorists.’

  • It also raised concerns about the increasing host of social media and ecommerce companies from China which had Indian users.
  • The SJM said that India should “curtail the operations” of Chinese companies in India in order to enforce national security

Note that, in December last year, SJM’s research found that Indian users were placing over 200,000 orders on Chinese ecommerce companies daily. It added that these companies were delivering via courier and postal gift shipments, violating Indian laws related to payment gateways, custom duties and GST, and harming the Indian MSME trade market.

Further, it said that China was promoting its own small industry through subsidized delivery via China Post. It said that since these companies were not registered in India, there was no grievance redressal mechanism and that there was a risk of ‘hazardous, prohibited, unsafe or substandard goods arriving in India.’


Note that SJM is not opposed to only Chinese companies doing business in India. Last month, the organisation passed a resolution asking for an ecommerce policy which would lean towards small retail traders and protect their interests. In its opinion, ecommerce giants like Flipkart and Amazon were flouting laws causing damage to the livelihoods of offline traders.

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Last week, the Swadeshi Jagran Manch asked the central government to:

  • Make registration and having a local Indian office compulsory for ecommerce companies which follow the marketplace model
  • Have an annual inspection mechanism to verify companies’ adherence to local norms
  • Have a code of conduct for the ecommerce marketplace model “to keep it neutral”
  • Disallow cashbacks from marketplace group companies
  • Have a suitable accounting standard

Ashwani Mahajan, the national co-convener of SJM, told the publication that according to a recent RTI, the DIPP did not have a roster of ecommerce marketplaces in India which followed the marketplace model.

Read our ecommerce coverage, and #NAMApolicy on ecommerce.

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