India and China have been stressful for many years. There are many reasons for this. But in the current context, the relationship between the two countries is slowly improving. America became the reason for this improvement. The way the tariff was imposed between the two countries from the US. India and China are coming close with that. Now the news is coming that some restrictions were imposed from India in China. Discussion is going on that some restrictions can be lifted soon. When there is investment in India from a country through FDI, there are many rules and laws regarding it. America, India and China are three countries. The US first imposed a tariff of 145 % on China. In return, China imposed 125 % tariff. This whole issue is of FDI. America has a lot of investment in China. From Apple’s production to Tesla’s largest power plot, hundreds of American companies have investment in China. In such a situation, the goods made from there will be expensive in America. FDI is very high and China can stop that FDI. Therefore, America can definitely threaten, but not too strict on China.
Also read this: After 50% tariff, Putin showed raudra form, tainted 629 missile, EU building was not spared even
After the 2020 incident of Galwan, the government had tightened the rule of the Press Note 3. Now a senior government official said that under improvement in relations with Beijing, India may relax some restrictions on foreign direct investment from China. The official said that if needed, we can reconsider Press Note 3. All options are open. The government’s leading think tank NITI Aayog last month suggested the removal of the condition of compulsory prior approval for FDI up to 24% from China.
Also read this: Enough, now we… India’s enemy raging on George Soros, trumps will be tightened!
Last month, NITI Aayog recommended the removal of the requirement of mandatory predecessor for Chinese FDI (FDI) up to 24 percent. In recent months, there has been warmth in relations between India and China, one of the reasons for bilateral trips to ministers and officials. The restoration of direct flights, increase in tourists’ movement and intensive talks to resolve border disputes have also helped reduce stress. This reconciliation has become even faster due to the effect of tariff measures of US President Donald Trump, in which 50% tariff on Indian goods has been implemented from 27 August.
Also read this: America will not back down until … Trump’s advisor on tariff is a new warning to India
Under the current rules, security approval from the Government of India is necessary for all investments of Chinese institutions. These restrictions were first implemented in July 2020, when India stopped companies from the land sharing countries from participating in government purchases contracts, citing the need to prevent national security concerns and hostile acquisitions. The Economic Survey 2024 also suggested a slight relaxation of restrictions on Chinese FDI (FDI), and it is said that it may increase India’s integration in global supply chains and promote export growth. Union Commerce and Industry Minister Piyush Goyal said last week that if the circumstances are favorable, the review of restrictions on Chinese direct investment (FDI) could be considered.