Foreign media: The Indian government approved limited easing of restrictions on Chinese investment on March 10, allowing Chinese companies to invest in specific sectors such as electronics, capital goods, and solar cells. This marks an important policy shift since the border conflict between the two countries in 2020.
Since 2020, India has strengthened its review of Chinese investments, requiring approval from security agencies, which led to the suspension of projects such as BYD's $1 billion electric vehicle joint venture. The relaxation is aimed at alleviating capital shortages and meeting the demand for technology and funds from the industry.
The Indian government think tank NITI Aayog recommended last year that Chinese companies be allowed to hold up to 24% of shares in Indian companies without approval. Analysts believe that this relaxation aims to attract Chinese manufacturing capital to set up in India, rather than relying on imported finished products. India's trade deficit with China reached $99 billion in the 2025 fiscal year, mainly due to imports of electronic components and machinery.
Recently, bilateral relations have continued to improve. After PM Modi's visit to China in August 2025, both sides have resumed direct flights and simplified the business visa process.
Original article: toutiao.com/article/1859289678253059/
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