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Shyamsunder Agrawal and Deek Raheja are out of Yiwu and on the way to Shanghai, a top official the Indian Embassy here told PTI.
The embassy official thanked the Chinese Foreign Ministry officials for prevailing on the local Yiwu administration to let the two go out of the town for their safety even though they may have to face the court case regarding the payments due to the Chinese merchants from their company.
It is not clear yet whether the two from Mumbai will stay put in Shanghai but, for the time being, they were released from the hotel in Yiwu which was surrounded by groups of angry Chinese traders who abducted them.
However, the duo cannot leave China as their travel documents have been impounded by the court in Yiwu in connection with the case.
Chinese traders were unwilling to let them go asserting that their company owed millions of Yuan for products bought from them and they would be permitted to leave only after payments were made.
Their case has become a diplomatic row of sorts between India and China after an Indian diplomat, S Balachandran fainted in Yiwu court while trying to secure their release on December 31. He is recovering in a hospital in Shanghai.
The Chinese government, however, denied any ill-treatment of the diplomat.
“Relevant reports saying that the Indian consular officer was forbidden to take food and medicine and was besieged during his stay in Yiwu were not true,” Chinese Foreign Ministry Spokesman Hong Lei told a media briefing here today.
“I want to stress that China is a country under the rule of law and China attaches great importance to China India relations. “Relevant departments always maintain lawful rights and interests of Indians in China in accordance with law,” he said.
Meanwhile, China today promised adequate safety to Indian nationals there as it initiated criminal proceedings against five locals suspected of being involved in the act.
The assurance was given by Chinese ambassador to India Zhang Yan during his separate meeting with External Affairs Minister S M Krishna and a senior official of the ministry, after which the Indian side expressed satisfaction at the steps taken.
“I had a detailed discussion with your Foreign Minister. The Chinese government attaches great importance to this matter. We are working very hard to find a solution to this issue and to resolve it as early as possible,” Zhang told reporters in New Delhi after his meeting with Krishna.
The two Indians were put up in a hotel during the past two days under police security and Raheja told PTI earlier that the hotel was surrounded by a group of Chinese traders who abducted them.
Though the court ordered their release on December 31, the traders refused to let them go. They literally lunged at the two as they clung to the diplomat to leave with him.
In the process, Balachandran fainted and was rushed to a hospital with injuries.
The two were kidnapped by Chinese merchants on December 15 after the owner of the company in which they work reportedly fled without clearing large sums of money owed to local suppliers.
The two alleged torture and brutal treatment during the custody and pleaded with the Indian Consulate in Shanghai to get them released from illegal custody.
Raheja had even threatened to commit suicide if Indian officials did not take them out of the trading city.
The breakthrough came after prolonged negotiations as Indian Ambassador to China, S Jaishankar, who was away in India on leave, returned today.


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Business in areas of disturbance is different and tough than in those areas where peace and law prevails .Yemen and many of the arab states are at the moment disturbed . The business is not done the way gujratis do that is word of mouth. Many agreements even at govt level can get broken. It is the job of the Indian missions to give advice to the Indians as to how to go about it and where to go . They should have never trusted their boss and let him go without paying the money .the govt must do reaprisal about our trade with Iran esp oil and be ready with conitgency plans if the things go bad.
Yes yes all Diplomacies will work as the traders are North Indians.No Diplomacy will work when it comes to attrocities of Srilankan Navy on Tamil Fishermen.ALL Indians will enjoy and mock , you rascals.
THE INCIDENT INVOLVING THE KIDNAPPING OF TWO BUSINESSMEN AND SUBSEQUENT BEATING OF INDIAN DIPLOMAT HAS BEEN VERY SUCCESSFULLY RESOLVED BY THE RELEASE OF TRADERS ALL BECAUSE OF GOOD DIPLOMACY BY INDIA ON ONE HAND AND A UNITED CRYING ACROSS THE COUNTRY FOR THE FOUL ACT BY CHINESE ON THE OTHER HAND. WELL PLAYED.
All these are gimmics to divert public attention from the real issue of corruption.
The incident of making hostages the Indian traders is really unfortunate , As India and China both the countries are trying to come near through Trade Import and Exports . As the incident had shocked the Indian's the Chines Authorities came into action by getting the traders released . The incident should be condemned .
Government of India is expected to arrest the erred Indian business when he lands India and extradite him to Chinese government as a token of our commitment to international relations between nations.