By Micah Jonah
January 9, 2026
India is reportedly planning to scrap five-year-old restrictions on Chinese companies bidding for government contracts, a move seen as a major step towards restoring economic, trade ties between the two nations.
The restrictions, imposed in 2020, required Chinese firms to register with an Indian government committee, obtain political and security clearances, effectively barring them from competing for contracts valued at $700-$750 billion. Reports say the Indian finance ministry is working to remove the registration requirement, with Prime Minister Narendra Modi’s office expected to make the final decision.
Experts say the move reflects a pragmatic shift in policy. “If confirmed, this signals further improvement in China-India economic relations,” said Zhou Mi, senior researcher at the Chinese Academy of International Trade and Economic Cooperation.
The restrictions had caused delays and bottlenecks in infrastructure, manufacturing, and energy projects, with some estimates showing India lost $15 billion in economic activity as a result. Industry groups also cited visa delays for Chinese professionals as a barrier to technology and skills transfer.
Officials in China welcomed the reported change. Spokesperson Guo Jiakun said easing travel and investment barriers “serves the common interests of all parties” and emphasized China’s readiness to work with India in maintaining long-term, strategic, mutually beneficial relations.
The announcement comes amid other signs of warming relations, including the resumption of direct flights between China and India, invitations for cooperation in areas like technology and AI. Analysts say the policy adjustment aligns with India’s ambitions to boost domestic manufacturing while balancing global trade partnerships.
