Following the recent border clash between India and China, the demand for boycott of Chinese companies in the country has been intensified. The BCCI i.e. India’s cricket board does not want to terminate the agreement with Chinese company Vivo. BCCI’s treasurer Arun Dhumal said on Thursday that our agreement with Vivo is till 2022 and only after this will the sponsorship be reviewed. Dhumal said that through the sponsorship agreement from Vivo, Money is coming to India and not going there. He urged that we have to understand that there is a big difference between taking care of the advantages of the Chinese company and taking care of the country’s advantage through the Chinese company.
BCCI argued that:
- Board pays 42% tax to the central government on the earnings from the Chinese companies. These earnings come by selling their products in India in the name of brand promotion. In such a situation, this agreement is not for China but the benefit of India.
- Chinese companies sell products in India. Dhumal said that if China’s money is helping Indian cricket, then we have no problem with it. It is like when Chinese companies are being allowed to sell their products in India, it would be better to return that money to the Indian economy.
- “We are in favour of reducing dependence on China’s goods”, the board treasurer said. But as long as the companies are allowed to do business in the country, if a Chinese company sponsors an Indian brand like IPL then there is no harm in it.
After all, smartphone maker Vivo is the sponsor of IPL and the board gets Rs 440 crore every year from Vivo. However, since after the India-China clash BSNL has decided to ban the use of Chinese products for upgrading 4G resources. Also, Railways said that it will cancel the Rs 471 crore contract for signalling and telecommunications given to the Chinese company.