India Eases Some Investment Norms For China, Ending Six Years Of Friction

India approved easing restrictions on Chinese investments in select sectors on Tuesday, in a major step by Prime Minister Narendra Modi to rebuild ties with Beijing and end six years of friction.

Below is a timeline of events since a deadly border clash between the two nuclear-armed Asian nations jolted commercial and diplomatic ties in 2020.

April, 2020 – India introduces heightened scrutiny for all investments from nations it shares a land border with, including China. New Delhi says the move is to curb opportunistic takeovers of Indian companies during the COVID-19 pandemic.

June, 2020 – India bans 59 mostly Chinese apps, including TikTok, WeChat, and UC Browser, citing national security concerns.

July, 2022 – China’s Great Wall Motor shelves plan to invest $1 billion in India after failing to obtain regulatory approvals, becoming one of the biggest casualties of New Delhi’s increased scrutiny of investments from Beijing.

July, 2023 – India rejects a $1 billion investment proposal by Chinese automaker BYD amid continued security concerns.

October, 2024 – India and China reach a deal on patrolling their disputed frontier to end a four-year military stand-off.

July, 2025 – India’s top government think tank, NITI Aayog, proposes allowing Chinese companies to take up to a 24% stake in Indian firms without security clearance, aiming to reduce delays caused by the post-2020 scrutiny regime.

August, 2025 – Indian Prime Minister Narendra Modi visits China for the first time in over seven years, in a further sign of a diplomatic thaw with Beijing as tensions with the United States rise.

October, 2025 – India and China to resume direct flights after a five-year freeze.

December, 2025 – India frees up business visas for Chinese professionals to end technician scarcity at factory floors that cost output worth billions of dollars over the years.

February, 2026 – India begins easing its restrictions on buying Chinese equipment, allowing state-run power and coal companies to start limited imports as shortages and project delays mount.