India Open to Chinese Business, but With Conditions: Jaishankar

1. Indian Foreign Minister Subrahmanyam Jaishankar stated that India is not “closed to business from China,” addressing concerns about bilateral economic relations.

2. Relations between India and China have been strained since the 2020 clashes between their troops on the Himalayan frontier.

3. Following the clashes, India increased scrutiny of Chinese investments and halted several major projects involving Chinese companies.

4. Recent statements from government officials, including Finance Minister Nirmala Sitharaman, suggest a potential easing of restrictions on Chinese investments.

5. The July economic survey highlighted that India could either integrate into China’s supply chain or attract more foreign direct investment (FDI) from China.

6. Jaishankar emphasized that the issue is more complex than a simple yes or no answer, focusing on specific sectors and terms of business.

7. There is speculation that India might relax restrictions on Chinese investments in non-sensitive sectors like solar panels and battery manufacturing.

8. Diplomatic and military discussions to resolve the Himalayan standoff have progressed slowly, affecting economic relations.

9. Since 2020, India has also restricted visas for Chinese nationals, although it is now considering easing visa restrictions for Chinese technicians.

10. This potential easing could be aimed at facilitating investments that have been hindered by previous restrictions.

11. Overall, India remains cautious but open to Chinese business, provided that the conditions and sectors align with national interests.