'Don’t fall for the West’s script': Beijing tells India to ignore ‘replace China’ hype as FDI falters

China’s state-run Global Times reignited economic tensions with India, branding the country a “graveyard for foreign investment” after a stunning 99% collapse in FDI inflows—accusing New Delhi of chasing global relevance with hype, not substance.

In an editorial, the Global Times referenced Indian media reports showing that in May 2025, India’s net foreign direct investment dropped 99% month-on-month and 98% year-on-year. The editorial frames the plunge as yet another signal that India’s much-hyped rise as an economic alternative to China may be faltering under the weight of weak infrastructure, erratic policies, and global investor skepticism.

Chen Lijun, a research fellow at the Yunnan Academy of Social Sciences, is quoted warning that India’s growth ambitions require more than “optimistic rhetoric” or expectations that global supply chains will simply relocate from China. “Success demands hard struggle,” he said, adding that India’s problems—“outdated technology, limited capital and weak infrastructure”—won’t be resolved by political slogans or media narratives.

The editorial argues that India’s investment climate remains fraught, citing repeated disappointments experienced by foreign companies. “At one point, the country earned the reputation of a ‘graveyard for foreign investment,’” it states, suggesting the label is again becoming relevant.

Taking aim at Western and Indian media, the piece criticizes the narrative of India “replacing” China as a global manufacturing and economic powerhouse. “Such rhetoric has little substantive value,” the paper writes, adding that comparing the two nations in a zero-sum framework distorts the broader reality of economic interdependence.

Despite the harsh critique, Global Times tempers its message with a call for cooperation. It notes that 2025 marks the 75th anniversary of diplomatic ties between India and China and describes recent steps to “build mutual trust” and improve relations after years of strain. The editorial insists that “a healthy and stable development of China-India relations aligns with the common interests of both sides.”

Still, the juxtaposition is clear: while Beijing publicly extends an olive branch, it is also issuing a stark warning that India's current trajectory could repel investors and derail its economic aspirations.

“Rather than debating who replaces whom,” the editorial concludes, “it makes far more sense to utilize each other’s strengths... and promote mutual benefit, win-win outcomes and shared development.”