Chinese diplomat urges India to change its restrictive policy on investments

In April 2020, the government made its prior approval mandatory for foreign investments from countries that share land borders with India to curb opportunistic takeovers of local companies amid tensions with China.. Chinese investment proposals have remained stalled for some time now as a result of this policy. Political tensions, particularly after the Galwan Valley clashes on the Sino-Indian border in June 2020, have caused complications in the political and economic relationship between New Delhi and Beijing. Preventing “opportunistic” takeovers of Indian firms during the COVID-19 pandemic was also cited as a reason for the introduction of these policies. 

While Ma did not speak about specific investment proposals, she mentioned that there have been no positive breakthroughs in talks between the two governments. 

“Between the two governments, we have very smooth channels to discuss these issues. But I cannot tell you that we have reached some positive and fruitful outcomes,” Ma Jia said. 

“I think some of the investments, very limited, have improved but most of the investment has not. Companies are still waiting for the permit from the Indian government. Between the two governments, we have not specifically talked about specific enterprises, but we have talked about providing a fair and non-discriminatory environment for the Chinese enterprises,” Ma went on to add. 

Mint had earlier reported that the Chinese government was still hopeful of receiving approvals for Chinese investments looking to break into the Indian market.