Chinese investment in India 2026

External Affairs Minister S. Jaishankar has reaffirmed India's position that lasting peace along the India-China border is essential for normalising bilateral relations. Speaking at the Bloomberg New Economy Forum in New Delhi on October 13, 2026, Jaishankar said relations with Beijing were gradually improving following progress in resolving border tensions that escalated in 2020. India-China Border Peace Essential for Normal Ties Jaishankar emphasised that India and China have maintained an unresolved boundary dispute for decades, but relative stability between 1975 and 2020 allowed bilateral relations to expand. The situation deteriorated following the 2020 Galwan Valley clash, which resulted in casualties among Indian and Chinese soldiers. He said four years of negotiations were required to restore peace and tranquillity in the border areas, adding that conditions had improved considerably since 2024. Jaishankar maintained that sustained border stability remained a fundamental requirement for rebuilding normal diplomatic relations. India Raises Concerns Over China Trade Imbalance Beyond border security, Jaishankar highlighted significant economic challenges affecting India-China relations, particularly the widening trade imbalance and restricted access for Indian businesses. He argued that Indian companies faced difficulties operating in several Chinese sectors despite India providing comparatively greater market access to Chinese businesses. The minister stressed that economic cooperation required fair commercial conditions and reciprocal opportunities. Chinese Investment and Market Access Under Discussion Responding to questions about Chinese investment and potential trade arrangements, Jaishankar confirmed that discussions were continuing. He clarified that India was not demanding a final settlement of the boundary dispute before expanding commercial engagement. However, maintaining peace along the border remained essential. Decisions concerning foreign investment, business operations and market access would be assessed separately under India's economic policies. Jaishankar's remarks reflected New Delhi's approach of cautiously restoring engagement with Beijing while maintaining its emphasis on border security and equitable economic relations.

EAM Jaishankar Sets Conditions for India-China Ties

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