Archive · 8 Sep 2025
India Navigates China Business Relations with New Approach
India is changing how it does business with China.
After a border dispute, India made it harder for Chinese companies to invest.
This led to restrictions on apps and investments.
Now, India is shifting towards partnerships.
Instead of keeping Chinese companies out, India wants them to work with Indian partners.
Chinese companies are now teaming up with Indian ones.
This new approach helps Indian businesses grow while keeping some control in Indian hands.
India hopes to create win-win situations by using clear rules and guidelines.
India is reassessing its business relations with China.
Restrictions were implemented after the 2020 border clashes.
Press Note 3 made prior approval mandatory for investments from countries sharing a border.
Chinese firms are now partnering with Indian manufacturers to operate in the country.
The government aims to formalize this approach through new policies and frameworks.
- Who
- India and China
- What
- Reassessing business ties and investment strategies
- When
- Since the 2020 border clashes and the Prime Minister’s recent visit
- Where
- India
- Why
- To balance pragmatism with national interest, creating structured partnerships with China.
- Event
- Prime Minister's visit to Shanghai Cooperation Organisation summit
- Policy Shift
- Gradual change from restrictive stance
- Restrictions
- Bans on Chinese apps, tightened investment rules
- Key Rule
- Press Note 3 requiring prior investment approval
- Result
- Shift towards partnerships with Indian manufacturers
- Model
- Joint ventures, licensing, contract manufacturing