China welcomes more Indian investments, ambassador says

He said China would welcome more Indian commodities and investment by Indian enterprises

China would welcome more Indian investments and commodities in the Chinese market and also hopes that India will provide a "sound business environment” for Chinese firms in the country, Beijing’s ambassador to India, Xu Feihong, said on Thursday.

The comments signal a willingness from Beijing to forge deeper economic ties with New Delhi that have been strained since a deadly clash between their troops on a Himalayan frontier in 2020.

India heightened scrutiny on Chinese investments after the clash and created new layers of red tape for Indian firms with Chinese stakeholders. But the Indian government is now looking to loosen some of these restrictions as its firms struggle to scale up manufacturing.

Ambassador Xu, speaking at an event in New Delhi, said that China is also willing to advance cooperation with India on science and technology, and hopes India will take measures to resume direct flights and facilitate visas for Chinese citizens.

He said China would welcome more Indian commodities and investment by Indian enterprises, adding, "It is hoped that the Indian side could provide sound business environment for the Chinese enterprises in India”.

China continues to be India’s biggest source of goods and was the largest supplier of industrial products last year. India’s trade gap with China fell briefly after the border clash but later doubled to $85 billion as of March 2024.