India proposes reopening government bidding to Chinese firms as ties thaw
India plans to remove curbs that effectively shut Chinese firms out of most of its government projects in a bid to ease shortages and delays
The proposal, first reported by Reuters, would roll back curbs, imposed after the two countries’ deadly 2020 border clash in the Galwan Valley, that effectively shut Chinese firms out of a vast segment of India’s public procurement market.
In October 2024, India and China completed a significant phase of troop disengagement in eastern Ladakh and agreed on coordinated patrolling arrangements, easing tensions along the disputed frontier and creating political space for limited economic re-engagement.
Srividya Jandhyala, an associate professor of management at the ESSEC Business School, Asia-Pacific, said the proposed easing came at a time of “cautious rebuilding” of ties between the two countries.
“Re-establishing economic ties with China could potentially drive new foreign investment and access to Chinese technology. This is especially relevant at a time when India has seen a sharp decline in foreign direct investment flows,” Jandhyala told This Week in Asia.