US President Donald Trump’s aggressive tariffs on Chinese goods are forcing Chinese businesses to rethink their global strategies. Eager to compensate for the loss of the American market, several companies, including Haier and Shanghai Highly Group, are now willing to dilute their stakes in Indian ventures.
Haier, ranked third in India’s consumer electronics market after LG and Samsung, is reportedly exploring a deal to sell 25–51% of its Indian arm. Mukesh Ambani’s Reliance Industries and Sunil Mittal’s Bharti Group are among those vying for a slice of the business, according to sources.
Earlier reluctant, Chinese firms are now more comfortable agreeing to minority ownership, given that establishing a stronghold in India has become critical. The Indian government, meanwhile, is playing tough, likely capping Chinese ownership in electronics joint ventures at just 10%, unless significant technology transfer takes place.
Shanghai Highly, one of China’s major compressor producers, has revived joint venture talks with Tata-owned Voltas, agreeing this time to take a smaller stake, say insiders.
Adding to the pressure, India’s production-linked incentive (PLI) schemes make manufacturing more competitive compared to China, boosting local appeal. Officials stress that India will favour tech-sharing partners and domestic production, rather than foreign brands controlling operations.
Meanwhile, Indian exporters have been warned against using shortcuts to reroute Chinese goods to the US market. True value addition and supply chain transparency are essential to seize the opportunity without risking backlash.
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