5h ago
PoliticsGeopoliticsInternational Trade
Key takeaways
Xi’s visit to India could ease diplomatic tension, but business may not benefit
Businesses in both countries face ongoing hurdles including investments stalled by regulations, visa delays and restrictions on industrial equipment.
- 1. Businesses in both countries continue to face hurdles, including investments stalled by regulations, visa delays and restrictions on industrial equipment, underlining the gap between diplomatic progress and economic ties, analysts say.
- 2. In March, India eased some of the restrictions on Chinese investment that it had imposed following the 2020 border clashes, focusing on electronics, capital goods and solar cell sectors.
- 3. The holdup of visas and equipment "reflects more than administrative friction" and shows China's willingness to use India's trade and technology dependence as leverage, said Ajay Srivastava, founder of New Delhi-based think tank Global Trade Research Initiative and a former Indian trade negotiator.