NEW DELHI, Sept 19 (Reuters) - China has expressed a desire for increased Indian investments and commodities in its market, while also urging India to create a favorable business environment for Chinese companies. This statement was made by Beijing's ambassador to India, Xu Feihong, signaling a potential thaw in relations that have been strained since a deadly clash between the two nations' troops in the Himalayas in 2020.
In the wake of the 2020 conflict, India imposed stricter regulations on Chinese investments and introduced new hurdles for Indian firms with Chinese stakeholders. However, the Indian government is now considering easing some of these restrictions as domestic companies face challenges in scaling up manufacturing.
Ambassador Xu emphasized China's willingness to enhance cooperation with India in science and technology and expressed hopes for the resumption of direct flights and easier visa processes for Chinese citizens. He noted that China remains India's largest source of goods, with the trade gap having widened to $85 billion as of March 2024.
This development highlights the ongoing economic interdependence between the two nations, despite political tensions, and suggests a mutual interest in stabilizing and enhancing trade relations.