In a befitting response to China’s ever ending expansionism, India has been constantly focussing on Beijing’s financial isolation. In a move that will mainly affect business entities from China, the Modi Govt has amended the General Financial Rules, 2017, imposing restrictions on public procurement from bidders of countries that share a land border with India, citing grounds of defence and national security. India shares its border with China, Nepal, Bhutan, Pakistan, Bangladesh and Myanmar. As per official data, out of these, the government has extended lines of credit to Bangladesh, Nepal, Myanmar, exempting them from the new order.

Bidders from these countries will be eligible only if they are registered with the Registration Committee constituted by the Dept for Promotion of Industry and Internal Trade (DPIIT). They will also be required to take mandatory political and security clearance from MEA, MHA and the Ministry of Finance.

Further, Indian Ambassador to Russia, B Venkatesh Varma, on Thursday said that India won’t do any business with China till there is “complete disengagement” of troops along the LAC in accordance with diplomatic agreements between the nations.

With global leaders such as United Kingdom, Germany, United States rallying behind India, dragon’s options are running out. Financial isolation could cause more damage to the country than a military response.