India Considers Reopening Doors to Chinese Investment Amidst US Tensions
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News18•20-01-2026, 14:27
India Considers Reopening Doors to Chinese Investment Amidst US Tensions
- •India is re-evaluating its stance on Chinese investments and companies, potentially easing restrictions imposed since 2020.
- •The shift is driven by economic needs, focusing on job creation, technology transfer, and strengthening domestic capabilities, moving away from a purely nationalistic approach.
- •Restrictions on Chinese companies in sensitive sectors like telecom, defense, and strategic infrastructure are likely to remain.
- •Relaxation in FDI rules (Press Note 3) and government procurement for non-strategic sectors is being considered to attract capital and address project delays.
- •Industry bodies like CTA Apparels and the engineering sector highlight dependence on Chinese inputs for competitiveness and production, advocating for controlled access.
Why It Matters: India is strategically easing restrictions on Chinese investments to boost its economy and counter US rhetoric.
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