India Eases Some Investment Norms For China After 6 Years Of Friction

In February, India begins easing its restrictions on buying Chinese equipment, allowing state-run power and coal companies to start limited imports as shortages and project delays mount.

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India introduces heightened scrutiny for all investments from China in 2020
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  • India eased restrictions on Chinese investments in select sectors in 2026 to rebuild ties with Beijing
  • India introduced strict scrutiny on border country investments, including China, in April 2020 during COVID-19
  • India banned 59 Chinese apps in June 2020 citing national security concerns
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India approved easing restrictions on Chinese investments in select sectors on Tuesday, in a major step by Prime Minister Narendra Modi to rebuild ties with Beijing and end six years of friction.

Below is a timeline of events since a deadly border clash between the two nuclear-armed Asian nations jolted commercial and diplomatic ties in 2020.

April 2020 – India introduces heightened scrutiny for all investments from nations it shares a land border with, including China. New Delhi says the move is to curb opportunistic takeovers of Indian companies during the COVID-19 pandemic.

June 2020 – India bans 59 mostly Chinese apps, including TikTok, WeChat, and UC Browser, citing national security concerns.

July 2022 – China's Great Wall Motor shelves plans to invest $1 billion in India after failing to obtain regulatory approvals, becoming one of the biggest casualties of New Delhi's increased scrutiny of investments from Beijing.

July 2023 – India rejects a $1 billion investment proposal by Chinese automaker BYD amid continued security concerns.

October 2024 – India and China reach a deal on patrolling their disputed frontier to end a four-year military stand-off.

July 2025 – India's top government think tank, NITI Aayog, proposes allowing Chinese companies to take up to a 24 per cent stake in Indian firms without security clearance, aiming to reduce delays caused by the post-2020 scrutiny regime.

August 2025 – Indian Prime Minister Narendra Modi visits China for the first time in over seven years, in a further sign of a diplomatic thaw with Beijing as tensions with the United States rise.

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October 2025 – India and China to resume direct flights after a five-year freeze.

December, 2025 – India frees up business visas for Chinese professionals to end technician scarcity at factory floors that cost output worth billions of dollars over the years. 

February 2026 – India begins easing its restrictions on buying Chinese equipment, allowing state-run power and coal companies to start limited imports as shortages and project delays mount.

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(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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