Hindi-Chini Bhai Bhai: Govt Can Lift Restrictions On Some 'Hi-Tech' Chinese Firms


Sheetal Bhalerao

Sheetal Bhalerao

Jul 26, 2024


In order to help the South Asian nation in boosting its domestic manufacturing, the Indian government is weighing options to ease investment restrictions on some Chinese firms, said an official familiar with the matter.

Hindi-Chini Bhai Bhai: Govt Can Lift Restrictions On Some 'Hi-Tech' Chinese Firms

Exemptions to Chinese Firms

The topic is under discussions on whether to give exemptions to Chinese firms in hi-tech sectors like solar modules and critical minerals, said the sources on the condition of anonymity. 

At present, the Ministry of Commerce and Industry and other security-related departments are examining the issue.

While a final call on the issue hasn’t been taken yet, the  official noted.

Considering the past, India-China relations spiraled downwards after a deadly 2020 border clash between the two nuclear-armed neighbors.

As a result, New Delhi imposed strict rules on Chinese businesses, banning Chinese apps and slowing visa approvals. 

But, these curbs have hurt Indian firms’ operations and are undermining the government’s ability to become a factory hub in the region, said Indian firms, especially in manufacturing.

Boosting India’s Exports to the US

Prior to this, the media also reported that the country was considering easing the restrictions on some businesses.

This was highlighted in the government’s annual Economic Survey report, authored by the chief economic adviser and released Monday.

It made a strong pitch for India to attract more investment from China as a way of boosting manufacturing. 

According to this report, “Focusing on foreign direct investment from China seems more promising for boosting India’s exports to the US, similar to how East Asian economies did in the past.”

Besides this, there are ongoing discussions on whether to give exemptions to Chinese firms in hi-tech sectors like solar modules and critical minerals. 

The Ministry of Commerce and Industry and other security-related departments are examining the issue, the official said, adding that a final call on the issue hasn’t been taken yet. 


Sheetal Bhalerao
Sheetal Bhalerao
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