Reuters reports that India’s finance ministry has drafted a proposal to scrap the security-clearance regime that has effectively barred Chinese companies from bidding on public contracts since the 2020 Galwan Valley clash. The plan, still awaiting sign-off from the Prime Minister’s Office, aims to unblock stalled power-equipment tenders and infrastructure projects worth an estimated US $700 billion.
While the headline story is trade, the mobility implications are immediate: New Delhi quietly restored direct commercial flights to China late last year and cut red tape for business-visa approvals for Chinese engineers and executives. According to officials quoted in the draft, the average processing time for multiple-entry B-3 visas has fallen from eight weeks to 15 days, provided applicants supply a project-reference letter from an Indian ministry.
![India Mulls Lifting 2020 Curbs on Chinese Firms—Business Visas Already Speeded Up]()
Infrastructure majors welcomed the prospect of renewed competition, though domestic manufacturers such as BHEL saw share prices tumble 10 percent on fears of cheaper Chinese bids. Legal experts caution that India’s separate FDI screening framework—tightened in 2020—remains intact, meaning Chinese equity investments will still require approval.
If the curbs are formally lifted, corporates should expect a surge in inbound Chinese technicians needing FRRO registrations, Mandarin interpreter support and health-insurance compliance under India’s Ayushman Bharat rules. Procurement teams are advised to revisit tender timelines, while HR teams should audit onboarding processes for short-term project staff from China.
Regional analysts view the move as part of India’s hedging strategy amid US tariff threats; by diversifying suppliers, New Delhi gains leverage in ongoing trade-talk stalemates with Washington.
While the headline story is trade, the mobility implications are immediate: New Delhi quietly restored direct commercial flights to China late last year and cut red tape for business-visa approvals for Chinese engineers and executives. According to officials quoted in the draft, the average processing time for multiple-entry B-3 visas has fallen from eight weeks to 15 days, provided applicants supply a project-reference letter from an Indian ministry.
Infrastructure majors welcomed the prospect of renewed competition, though domestic manufacturers such as BHEL saw share prices tumble 10 percent on fears of cheaper Chinese bids. Legal experts caution that India’s separate FDI screening framework—tightened in 2020—remains intact, meaning Chinese equity investments will still require approval.
If the curbs are formally lifted, corporates should expect a surge in inbound Chinese technicians needing FRRO registrations, Mandarin interpreter support and health-insurance compliance under India’s Ayushman Bharat rules. Procurement teams are advised to revisit tender timelines, while HR teams should audit onboarding processes for short-term project staff from China.
Regional analysts view the move as part of India’s hedging strategy amid US tariff threats; by diversifying suppliers, New Delhi gains leverage in ongoing trade-talk stalemates with Washington.
Source: Reuters
