NEW DELHI – India remains open to business opportunities with China, but it is selective about which sectors and under what conditions, according to Foreign Minister Subrahmanyam Jaishankar. Speaking in Berlin on September 10, Jaishankar emphasized that the relationship between the two nations, which has been strained by recent border clashes, requires careful navigation.
The tensions between the nuclear-armed giants escalated after a 2020 confrontation in the Himalayas, resulting in the deaths of 20 Indian and four Chinese soldiers. In response, India tightened scrutiny on Chinese investments and halted several major projects.
Despite these strains, there is growing support within the Indian government, including from Finance Minister Nirmala Sitharaman, for increased Chinese investment, particularly in sectors where India lacks expertise.
Jaishankar addressed the issue at a conference, noting, “We are not closed to business from China … I think the issue is, which sectors do you do business and what terms do you do business? It’s far more complicated than a black and white binary answer.”
Recent reports suggest that India might relax restrictions on Chinese investments in non-sensitive areas like solar panels and battery manufacturing, where local expertise is limited and domestic production is hindered.
Diplomatic and military discussions aimed at resolving the Himalayan standoff have progressed slowly. Additionally, India has implemented strict visa restrictions on Chinese nationals since 2020, although it is now considering easing these restrictions for certain technicians to facilitate investment.
The evolving stance highlights India’s complex approach to balancing economic opportunities with national security concerns.