News - India is set to lift restrictions on Chinese companies.

In a significant diplomatic overture, India is poised to lift existing restrictions on Chinese companies bidding for government contracts. The restrictions were originally enacted in 2020 following a severe border confrontation between India and China that heightened tensions and resulted in stringent measures. These restrictions mandated additional clearances for businesses from neighboring countries participating in India's procurement processes, with the measures predominantly affecting Chinese firms. India's Finance Ministry has indicated the shift in policy as part of a larger strategy to reassess and improve Sino-Indian relations. This decision marks another step in a series of diplomatic efforts to mend and strengthen ties. Since 2024, diplomatic engagements between the two nations have intensified, taking significant steps toward resolving longstanding military and border disputes. Prime Minister Narendra Modi and President Xi Jinping have played pivotal roles in this diplomatic thaw. Their meeting on the sidelines of the BRICS summit in October 2024 spearheaded commitments to reconcile and bolster economic, cultural, and tourism exchanges. Follow-up discussions during the Shanghai Cooperation Organization summit in August 2025 further solidified these developments. In tandem with improved relations, direct flights between India and China resumed in October 2025, and China eased visa procedures for Indian nationals. These developments significantly reduced travel barriers and quickened business-related exchanges, with India reciprocating by shortening visa processing times for Chinese professionals. This warming of relations occurs against a backdrop of pending US legislation proposing severe sanctions on Russia. The bill intends to target nations purchasing Russian energy, indirectly impacting India and China's economic policy decisions. Beijing has criticized these moves, accusing the US of attempting to disrupt its burgeoning relationship with India, as both nations navigate complex geopolitical landscapes.