Chinese President Xi Jinping’s much-anticipated visit to New Delhi this week, his first to India in seven years, should further the diplomatic thaw between the giant neighbours, but there are few signs as yet that their business ties will improve.
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ties → anticipate → neighbours
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.
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analysts → continue → progress
While Mr. Xi is widely expected to be in Delhi this weekend for the annual BRICS summit, Beijing is yet to confirm his visit, and there is no word if he will have a meeting with Prime Minister Narendra Modi, which will be crucial to set the future direction of bilateral ties.
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which → expect → ties
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China and India fought a brief war in 1962, setting the backdrop for a wary relationship since then, which soured after a 2020 border skirmish killed 20 Indian and four Chinese soldiers.
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skirmish → read → Indian
Still, ties have improved in recent years, especially since Mr. Modi visited China last year and as both nations grapple with volatile relationships with the U.S.
“China certainly wants to improve ties, but we are waiting to see to what extent India is actually willing to improve them,” said Lin Minwang, a South Asia expert with Shanghai’s Fudan University and former diplomat at the Chinese Embassy in New Delhi, suggesting that any dramatic progress was unlikely.
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progress → improve → Delhi
Harsh Pant, vice-president at New Delhi’s Observer Research Foundation think tank, said the “trust deficit” between the countries was high.
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deficit → say → countries
“China has economic heft and there is a good opportunity to use that and emerge as a reliable partner, especially when both nations are impacted by America’s trade policies,” he added.
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he → have → policies
In March, India eased some of the restrictions on Chinese investment that it imposed following the 2020 border clashes, focusing on electronics, capital goods and solar cell sectors.
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it → ease → sectors
It is also considering faster approvals for joint ventures between Indian and Chinese firms in some industries.
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It → consider → industries
New Delhi has since approved a few significant projects, including a manufacturing venture between India’s Dixon Technologies and Chinese smartphone maker Vivo Mobile.
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Delhi → approve → Technologies
But that has not been enough to attract back leading Chinese companies like vehicle makers BYD and Great Wall Motor, which shelved planned investments in India after facing heightened scrutiny by New Delhi, according to an Indian government source.
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which → attract → source
Great Wall Motor and BYD declined to comment.
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Motor → decline → ?
Chinese companies’ proposed investments in India are facing more scrutiny from Beijing itself, including in sectors where sophisticated manufacturing and high-end technology may be involved, the source and another person said, both requesting anonymity as they were not authorised to speak to the press.
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they → propose → press
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China’s Foreign Ministry told Reuters that Mr. Xi and Mr. Modi, who briefly met this month at a regional forum in Kyrgyzstan, think the two countries are “partners, not competitors, and they represent opportunities, not threats, for each other’s development”.
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they → read → development
India’s Trade and Foreign Ministries did not respond to requests for comment.
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Ministries → respond → comment
New Delhi has declined to approve a proposal by Alipay, a platform related to China’s Ant Group, to be linked to India’s instant payments system, citing national security concerns, Reuters reported last week.
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Reuters → decline → concerns
The Indian government is also considering a recommendation by its Serious Fraud Investigation Office that Chinese cellphone maker Xiaomi be investigated for alleged irregularities in its business in India and breach of foreign investment laws, Reuters has reported.
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Reuters → consider → laws
Xiaomi said it complies with all local laws and has not received any communication from the SFIO.
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it → say → SFIO
At the same time, one of the Indian sources said, Chinese authorities have asked companies not to sell critical technology and infrastructure to India, including port equipment, solar panels and mobile manufacturing equipment.
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authorities → say → equipment
China’s Commerce Ministry did not respond to a request for comment.
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Ministry → respond → comment
Last year, India and China resumed direct flights and New Delhi eased visa procedures for Chinese business professionals.
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Delhi → resume → professionals
However, some Indian business people with interests in China have recently had trouble securing visas, according to one of the sources and an industry executive.
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people → have → sources
China’s Foreign Ministry said it issues visas for “Indian nationals who have a genuine need to visit China” in accordance with the law and regulations.
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who → say → law
This year, equipment and components made in China that India needs in key sectors such as solar energy and electronics as well as infrastructure development have been held up at Chinese customs, according to the industry executive and the two Indian sources.
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India → make → executive
Some massive boring machines from China for key infrastructure projects in India have been held up for more than a year, a third Indian source, a government official, said.
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source → bore → year
The hold-up 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.
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Srivastava → reflect → tank
But a meeting between Mr. Modi and Mr. Xi could help dismantle some barriers, if it goes well.
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it → help → barriers
Anup Wadhawan, a former top Indian trade official, said any meeting between the top leaders of the two countries will “always afford opportunities to better align political and economic interests”.
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meeting → say → interests
“Of course, commercial ties are ultimately driven by the mutual economic interests of the citizens of both countries.
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ties → drive → countries
Bilateral discussions can, however, work towards enabling these pathways to fructify.”
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pathways → work → ?
