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Xi India Visit May Ease Thaw, Despite Business Suspicion
India and China have had a difficult relationship, especially after a deadly border clash in 2020.
Their leaders have recently tried to improve relations.
Xi Jinping may visit India for a BRICS meeting, but China has not officially confirmed it.
Meeting Indian Prime Minister Narendra Modi could help the two countries work together.
India has allowed some Chinese investments again.
However, several large Chinese companies remain cautious about investing in India.
Businesses also report problems obtaining visas and receiving equipment from China.
China and India say they should be partners rather than competitors.
Analysts still say distrust is making business cooperation difficult.
Xi Jinping is expected to visit New Delhi for the BRICS summit, but Beijing has not confirmed the trip.
A meeting with Narendra Modi could influence the future direction of India-China relations.
India has eased some restrictions on Chinese investment and approved a Dixon Technologies-Vivo Mobile manufacturing venture.
Major companies including BYD and Great Wall Motor have not resumed planned Indian investments amid regulatory scrutiny.
Visa delays, customs holds and restrictions on industrial equipment continue to hinder commercial ties.
- Who
- Chinese President Xi Jinping and Indian Prime Minister Narendra Modi are the central figures, with businesses and officials in both countries also involved.
- What
- Xi’s possible India visit could support a diplomatic thaw, while investment, visa and equipment obstacles continue to constrain business ties.
- Where
- New Delhi, India, and in commercial dealings between India and China.
- When
- Xi is expected to visit during the BRICS summit this week, but Beijing had not confirmed the visit as of September 10.
- Why
- The visit and a possible Modi-Xi meeting could improve bilateral relations, but lingering distrust, regulations and trade dependencies continue to create barriers.
Diplomatic Opening
Business Caution
Prospects for better relations
Diplomatic Opening
Chinese officials describe India and China as partners rather than competitors, and analysts say a Modi-Xi meeting could help align political and economic interests.
Business Caution
Analysts say the trust deficit remains high and that dramatic progress is unlikely without clearer evidence of changed policies.
Investment cooperation
Diplomatic Opening
India has eased some restrictions and approved significant projects, suggesting limited economic reopening.
Business Caution
Major Chinese investors remain cautious, while Indian scrutiny and possible investigations continue to discourage new projects.
Trade and technology barriers
Diplomatic Opening
Improved diplomatic ties, resumed direct flights and eased visa procedures could create pathways for greater commercial cooperation.
Business Caution
Reported visa delays, customs holds and Chinese restrictions on critical equipment suggest that economic dependence may still be used as leverage.
Key facts
- Expected visit
- Xi Jinping is widely expected in New Delhi for the annual BRICS summit, though Beijing has not confirmed it.
- Last reported India visit
- The visit would be Xi’s first to India in seven years.
- 2020 border clash
- A 2020 skirmish killed 20 Indian soldiers and four Chinese soldiers.
- Indian investment policy
- India eased some restrictions on Chinese investment in March, focusing on electronics, capital goods and solar cells.
- Approved venture
- India approved a manufacturing venture involving Dixon Technologies and Chinese smartphone maker Vivo Mobile.
- Investment setbacks
- BYD and Great Wall Motor shelved planned investments in India after heightened scrutiny.
- Reported business barriers
- Companies have faced visa difficulties, customs delays and holds on Chinese equipment used in Indian infrastructure, solar and electronics projects.
Quotes
China’s foreign ministry
Chinese government ministry commenting on Xi and Modi’s view of bilateral relations
“China certainly wants to improve ties, but we are waiting to see to what extent India is actually willing to improve them”
theprint.in
“partners, not competitors, and they represent opportunities, not threats, for each other’s development”
theprint.in
Anup Wadhawan
Former senior Indian trade official
“Of course, commercial ties are ultimately driven by the mutual economic interests of the citizens of both countries. Bilateral discussions can, however, work towards enabling these pathways to fructify.”
theprint.in
Sources
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