India-China thaw sparks hopes of revival in trade ties, boost in Chinese investment
Analysts and industry players say easing of bilateral ties may herald more business cooperation in sectors such as electric vehicles
India and China’s progress in ironing out long-standing border tensions has sparked hopes of a revival in trade ties that could open up Chinese investments in sectors such as electric vehicles (EV) and consumer electronics.
Earlier this month, India Foreign Minister Subrahmanyam Jaishankar noted that there was “some progress” in disengagement of troops from both sides of their border, saying it was a “welcome move” which “opens up the possibility that other steps could happen”.
Ties between India and China hit one of their lowest points following a clash between troops along the disputed Himalayan border in 2020, and relations have only begun to warm with the withdrawal of soldiers on either side of the border.
That followed an earlier agreement in October on patrolling arrangements on the border between the two countries.
India had increased scrutiny for visa applications from Chinese citizens in the wake of the border clashes, which hurt some of India’s key manufacturing firms as stricter visa rules meant specialised engineers from China could not enter the country, leading to production losses.
