Hero Cycles Cancels Business Project with China Worth Rs.900 Cr

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Hero Cycles Cancels Business Project with China Worth Rs.900 Cr
Hero Cycles Cancels Business Project with China Worth Rs.900 Cr

India leading bicycle manufacturers company, Hero Cycles, has announced about the cancellation business project involving China worth Rs. 900 crores. This announced mention comes to show of the company’s commitment to boycott Chinese products after the LAC standoff in the Galwan Valley. 

The company’s chairman-cum-managing director (CMD) Pankaj Munjal said after the breaking business ties with Chinese companies, Hero Cycle is exploring a new global market. Since Germany is the top market in the cycle, the company plans to venture into European markets by setting up its plant in Germany and this is the one of the best alternatives of China.

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The bicycle demand has increase in past few months in worldwide, and, Munjal said that Hero Cycles is expanding its production capacity to meet according new growing demand. In coronavirus time many small companies adversely affected, Munjal provided technical assistance to these companies’ small companies to manufacture the high-end bicycle parts that were being imported from China.

‘Boycott China’ Movement in India

On 16 June, a day after the conflict in the Galvan Valley in the LAC, which killed 20 Indian soldiers, the Confederation of All India Traders (CAIT) announced a national movement to boycott Chinese goods and products. After this announcement, anti-China sentiment prevailed over the country and many Indians took to the streets to protest Chinese goods in India.

In this moment a central government ban 59 Chinese apps in India including a famous TikTok app on 29 June 2020. This step was taken to protect the sovereignty of Indian cyberspace and to ensure the interests of crores of Indian mobile users. The government has said that this was a major setback for China’s digital silk route ambitions.

Further on from this, several major conglomerates have vowed to reduce their business deals with China, with the JSW Group resolving to reduce imports from the current $400 million to nil in two years, whereas various contracts including PPP ones have been cancelled.

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