India wants to strengthen control over Chinese goods from ASEAN countries

India seeks to strengthen control over import of goods by Chinese companies from the countries of the Association of Southeast Asian Nations (ASEAN), reports the Economic Times citing sources.

According to interlocutors of the newspaper, new Delhi has the information that China is creating a new company or acquires a company that doesn't exist in countries such as Vietnam. Using these shell companies, Chinese firms are rebranding and export of goods to India using free trade agreement of India with ASEAN, the newspaper writes.

The Indian government also asked the industry representatives and importers with a request to identify shipments that violate the free trade agreement.

India in recent days has taken steps to implement stringent quality control measures and higher tariffs on goods from China because it hopes to stimulate domestic production to reduce dependence on imports. The increased restrictions on Chinese manufactured goods followed a fight between the military of India and China in Ladakh, which killed 20 Indian soldiers. Despite the agreement on the mutual withdrawal forces, the two sides continue to strengthen the military contingent in the region.