The Return of Chinese Tourists in India: Opportunity or Financial Risk?

In 2020, the Government of India took a tough stand — banning entry of all Chinese tourists. The move came after COVID-19 and escalating border tensions. Before this, nearly 400,000 Chinese tourists visited India every year, contributing to the travel economy.

For five years, only business, medical, and student visas were allowed. But in July 2025, the ban was finally lifted. Just like neighbors catching up after years, the Indian aunty and Chinese aunty are gossiping in the mohalla again.

But beneath the reunion lies a serious concern: Will the return of Chinese tourists in India also bring back financial risks, tax evasion, and shady businesses? Let’s break it down.

How Chinese Tourists in India Turn Travel into Business

Many Indians are famous for turning a tourist visa into a business visa abroad — setting up shops, sending money home, and eventually settling back.

From tourism to trading: the Indian vs. Chinese model

The Chinese do something similar in India, but often push it further.

Why small businesses are most affected

• Gambling apps
• Instant loan apps
• Suspicious investment schemes
• Round-tripping funds through shell companies

And here’s the kicker — many of these avoid paying proper taxes.

Fake Aadhar & PAN Scams Linked to Chinese Tourists

ED raids on Chinese-linked firms

The Enforcement Directorate (ED) and Ministry of Corporate Affairs (MCA) have uncovered shocking details: Over 600 firms linked to Chinese loan app scams have been raided.

Loopholes in India’s #taxfiling system

Several Chinese nationals registered Indian companies using fake Aadhar and fake PAN cards. This isn’t just fraud — it’s an organized attempt to exploit loopholes in India’s tax and corporate system.

Round-Tripping by Chinese Firms: The OPPO & Vivo Case

How profits exit India and return tax-free

Remember when Vivo, OPPO, and OnePlus were under ED scanner? That wasn’t just about smartphones. Their profits were quietly moved out of India and brought back disguised as “investments.”

The role of crypto and hawala channels

This method used hawala networks and crypto transfers, letting billions move invisibly, while India lost massive #taxrevenue.

Gambling Apps and the Dominance of Chinese Firms

Why Indian apps can’t compete with Chinese scale

When it comes to gambling, Chinese companies dominate. Even the smallest Chinese gambling firms in India are bigger than all Indian apps combined.

Lotteries, trades, and unregulated markets

From lotteries to crypto betting, the scale is massive — and largely unregulated. For everyday Indian investors, this raises red flags.

India’s Next Step: Balancing Tourism with Financial Security

The opportunity for cultural and economic growth

✅ More tourism, cultural exchange, and potential investments.

The urgent need for stricter financial monitoring

❌ More shady businesses, tax evasion, and illegal trades sneaking back in.

India’s regulators — from ED to RBI — will need to stay alert. For investors, the message is clear: not every shiny opportunity is safe.

Final Word

The China tourist ban once shielded India from certain risks. With the gates now reopened, both opportunities and dangers walk in together. As India welcomes back Chinese tourists in India, it must also tighten financial checks to protect its economy and investors.

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