The proposal, first reported by Reuters, would roll back curbs, imposed after the two countries’ deadly 2020 border clash in the Galwan Valley, that effectively shut Chinese firms out of a vast segment of India’s public procurement market.
In October 2024, India and China completed a significant phase of troop disengagement in eastern Ladakh and agreed on coordinated patrolling arrangements, easing tensions along the disputed frontier and creating political space for limited economic re-engagement.
Advertisement
Srividya Jandhyala, an associate professor of management at the ESSEC Business School, Asia-Pacific, said the proposed easing came at a time of “cautious rebuilding” of ties between the two countries.
“Re-establishing economic ties with China could potentially drive new foreign investment and access to Chinese technology. This is especially relevant at a time when India has seen a sharp decline in foreign direct investment flows,” Jandhyala told This Week in Asia.
Advertisement