India's easing of investment restrictions on China has sparked controversy

India's consideration of easing investment restrictions on China and raising import levels has sparked intense domestic debate.

Voice of America reported on July 30 that the Indian government is considering easing restrictions on Chinese investment and visa restrictions for Chinese citizens, an important policy change that has received support from India's industrial sector, particularly the manufacturing sector. The industry, which has suffered in recent years due to severe disruptions in communications with China, is hoping to revive investment and technology exchange ties with China.

In 2020, Sino-Indian forces clashed in Ladakh's Galvan Valley, killing 20 Indian soldiers and at least four Chinese soldiers. The incident became the most serious military conflict between the two countries in decades. As a result, relations between the two countries have deteriorated, and the New Delhi government has taken tough measures against Chinese investment and trade, imposing visa restrictions on Chinese citizens and imposing high tariffs on products imported from China. This policy has had a major impact on India's high-tech projects.

The Confederation of Indian Industry (CII), India's largest business group, has called for a review of the Chinese investment ban adopted in 2020, advocating a more unrestricted approach to investment, component imports and technology transfer in vulnerable sectors. The group also called for easier labor imports and lower tariffs on foreign trade with China.

Experts believe that India should maintain a balance between short-term economic interests and long-term strategic interests. The government's decision in this regard will have a profound impact on India's economic direction and position in the global supply chain. The debate on China's investment in India not only reflects the massive difficulties facing the globalized economy, but also reflects the growing conflict between national interests and international interdependence.