India and China sought to enhance their economic cooperation on the sidelines of the just-concluded 18th Brics Leaders' Summit despite differences over the allocation of technologies, minerals, and border issues. According to Business Standard, the world's second and sixth largest economies together now constitute over 80 per cent of the combined gross domestic product (GDP) of Brics and almost 20 per cent of the global economy. China has called for a fair, just, transparent and non-discriminatory business environment for companies from all countries investing and operating in India, ahead of the summit scheduled for September 12-13 in New Delhi. Chinese Foreign Ministry spokesperson Guo Jiakun made these remarks at a regular press briefing in Beijing in response to media reports about India's Serious Fraud Investigation Office (SFIO) recommending an investigation into Chinese smartphone maker Xiaomi. Guo stated that China-India economic and trade cooperation is mutually beneficial and win-win in nature.
India has implemented several measures this year to ease restrictions affecting Chinese-linked businesses while maintaining government scrutiny. In March, the government approved changes to FDI rules allowing certain non-controlling investments by foreign companies with Chinese or Hong Kong shareholding of up to 10 per cent through the automatic route, subject to sectoral conditions. The revised rules took effect on May 1. In June, the government allowed four Chinese-linked power equipment companies with manufacturing facilities in India - TBEA Energy, Nanjing Electric India, New Northeast Electric India and Taikai Electric (India) - to bid for specified government power projects, with the exemption valid for two years.
The diplomatic engagement comes as India's Serious Fraud Investigation Office (SFIO) has sought approval from the Ministry of Corporate Affairs for a deeper probe into Xiaomi's India operations. As per The Times of India, the proposed investigation is expected to examine fund transfers and whether the company secured mandatory investment approvals under Indian laws. However, Xiaomi has maintained that it has not received any notice or communication from the SFIO and continues to assert that it fully complies with Indian laws. This ongoing investigation highlights the regulatory challenges facing Chinese companies operating in India despite the broader diplomatic push for improved business relations.
The diplomatic engagement comes as India and China work to improve bilateral ties following tensions after the 2020 Galwan clashes. According to The Indian EYE, Chinese President Xi Jinping will attend the 18th BRICS Summit in New Delhi from September 12 to 13, the Chinese Ministry of Foreign Affairs confirmed on Thursday. The confirmation comes after weeks of anticipation over Beijing's representation at the summit and amid signs of renewed diplomatic engagement between New Delhi and Beijing. President Xi will travel to India at the invitation of Prime Minister Narendra Modi for the summit, marking his first trip to India since his informal meeting with Prime Minister Modi in Mamallapuram in 2019 for the 2nd India-China Informal Summit. The visit comes against the backdrop of efforts by the two sides to stabilise bilateral ties following years of tensions along the Line of Actual Control. Meanwhile, when asked whether Chinese President Xi Jinping is slated to visit India for the BRICS Summit later this week, Guo declined to elaborate, adding to the heightened attention over the possibility of a meeting between Prime Minister Modi and President Xi on the sidelines of the summit.
