In the past, the UPA government has questioned FDI inflows from Chinese firms in "sensitive" areas due to security reasons. The result: Indian FDI in China is 10 times the figure for the reverse flow. India also refused contracts to a consortium of Kaidi Electric Power and China Harbour Engg in ports, and Huawei Technologies in telecom. The Chinese ambassador to India, Sun Yuxi, agreed but downplayed the issue: "...sometimes problems occur and we need to overcome them quietly. I am very happy to hear the new (Indian) foreign minister remark that Indian policy is not discriminating against any Chinese company."
There is no skirting the issue, India Inc is wary of Chinese competition. As China emerges as the "factory to the world", Indian firms have lobbied with the government to impose stiff anti-dumping duties on imports of Chinese products—from silk to polyester, tyres to phosphoric acid. Indian industry bodies have also realised the imbalance in the booming bilateral trade. A CII study this month found that while India’s major exports to China are low-priced commodities (iron ore, plastics, chemicals), the latter "is exporting more value-added products (electrical and electronic machinery, and mechanical appliances)".