China Seeks Stronger Economic Ties with India Amid Regulatory Changes

China expresses willingness to welcome more Indian investments and commodities while urging India to provide a sound business environment for Chinese firms. The two nations aim to strengthen economic ties despite strained relations since a 2020 border clash. India plans to ease restrictions on Chinese investments.

China has expressed a keen interest in welcoming more Indian investments and commodities into its market, while also urging India to create a favorable business environment for Chinese firms. The statement was made by Beijing's ambassador to India, Xu Feihong, during his address on Thursday.

Xu's comments suggest a newfound willingness from Beijing to deepen economic ties with New Delhi, despite strained relations following a deadly 2020 clash between troops at the Himalayan frontier. In response to the conflict, India heightened scrutiny on Chinese investments, adding layers of regulatory red tape for Indian firms with Chinese stakeholders. However, the Indian government is now looking to loosen some of these restrictions as local firms face challenges in scaling up manufacturing.

During his speech in New Delhi, Xu highlighted China's openness to advancing cooperation in science and technology and urged India to resume direct flights and facilitate visas for Chinese citizens. Emphasizing the potential for increased trade, he noted that China continues to be India's largest source of goods and was the leading supplier of industrial products last year. Despite a brief dip following the border clash, India's trade gap with China surged to $85 billion as of March 2024.

(With inputs from agencies.)