Overview

• Commerce Minister Piyush Goyal said India–China ties are gradually moving toward normalcy as efforts to address the border issue advance.
• He hinted the approval mechanism for Chinese investment proposals could be relaxed, while stopping short of announcing any policy change.
• Press Note 3, issued in April 2020, still requires prior government clearance for FDI from countries sharing a land border with India.
• Modi and Xi, meeting on the sidelines of the SCO summit in Tianjin, agreed to pursue a fair and mutually acceptable border solution and to expand trade and investment ties.
• Goyal described the 2020 Galwan clash as a blip that triggered stricter scrutiny, noting that a committee currently vets all such FDI applications.