Xi Jinping’s visit to India may foster diplomatic rapprochement
Chinese President Xi Jinping will arrive in New Delhi, India, this weekend for the annual BRICS summit. This will be his first visit to the country in seven years. As Channel NewsAsia reports, the trip may contribute to further diplomatic rapprochement between China and India, although their business ties continue to be complicated by regulatory barriers, visa delays and restrictions on equipment supplies.
Possible meeting with Modi
China’s Foreign Ministry confirmed that Xi Jinping will be in New Delhi for the BRICS summit but did not specify whether he will hold a bilateral meeting with Indian Prime Minister Narendra Modi. Analysts believe such a conversation would be important for the future direction of bilateral relations.
China and India fought a war in 1962, and their relations deteriorated after a 2020 border clash that killed 20 Indian and four Chinese servicemen. At the same time, relations have improved somewhat in recent years, particularly after Modi’s visit to China last year. China’s Foreign Ministry told Reuters that Xi and Modi view their countries as partners rather than competitors.
Investment and restrictions
In March, India eased some restrictions on Chinese investments introduced after the 2020 clashes. This concerned electronics, capital goods and the solar cell sector. New Delhi also approved several major projects, including a manufacturing venture involving India’s Dixon Technologies and Chinese smartphone maker Vivo Mobile.
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According to an Indian government source, automakers BYD and Great Wall Motor postponed planned investments in India after New Delhi stepped up scrutiny. At the same time, Indian authorities did not approve Alipay’s proposal to connect to India’s instant payment system, citing national security concerns.
Reuters also reported that Indian authorities are considering a recommendation by the Serious Fraud Investigation Office to investigate Xiaomi over alleged violations in business operations and foreign investment legislation. Xiaomi said it complies with local laws and had not received any notices from the agency.
Visas and equipment
Last year, the countries resumed direct air links, and India simplified visa procedures for Chinese business travelers. However, some Indian businesspeople have recently experienced difficulties obtaining Chinese visas. China’s Foreign Ministry said it issues visas to Indian citizens who have a justified need to visit China, in accordance with laws and regulations.
Indian sources and an industry representative said Chinese-made equipment and components for solar energy, electronics and infrastructure projects are being delayed at Chinese customs. According to an Indian official, large tunnel-boring machines for key infrastructure projects in India have been delayed for more than a year. Former Indian trade official Anup Wadhawan said a meeting between the leaders could help better align political and economic interests.
