NEW DELHI: The first deadly face-off between Indian and Chinese troops in more than four decades adds another layer of uncertainty to companies already reeling from the coronavirus pandemic on both sides of the border.
The clashes that left 20 Indian soldiers dead, along with an unknown number of Chinese casualties, followed a seven-week military standoff between the two nuclear-armed powers. While India in a statement late Tuesday said it remains committed to peace on the border with China, an escalation risks disruption for firms from Alibaba Group Holding Ltd and Xiaomi Corp to Tata Motors Ltd that have customers — and investors — in two of the world’s biggest economies.
“A gamut of companies importing parts or capital from China will have to find alternative sources quickly if tensions escalate,” said Aneesh Srivastava, chief investment officer at Star Health and Allied Insurance Co. “The makers of white goods, luggage bags, auto components and some of the e-commerce companies may have to rework their business strategy.”
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