Report: India considers ending restrictions on Chinese companies
India’s finance ministry is reportedly planning to lift five-year-old restrictions on Chinese companies bidding for government contracts, imposed after the 2020 border clash. This move aims to revive commercial ties amid easing diplomatic and border tensions between the two nations.
Restrictions introduced in 2020 required Chinese bidders to register with a government committee and obtain security clearances, effectively barring them from contracts worth $700-750 billion. Chinese firms previously contributed significantly to sectors like power transmission and renewable energy projects.
Eased military tensions along the Line of Actual Control and diplomatic engagements have prompted this policy reassessment. Government departments face project delays and equipment shortages due to limited bidders, pushing for exemptions to accelerate infrastructure goals.
Removing these curbs could restore competition, reduce delays in public projects, and boost economic priorities without fully resetting bilateral relations. The final decision rests with Prime Minister Narendra Modi’s office. FDI restrictions on Chinese firms remain in place for now.
