The two nuclear-capable nations have experienced heightened tensions since a clash between their troops occurred along the largely undefined border in 2020, resulting in the deaths of 20 Indian soldiers and four Chinese soldiers. The following are some areas impacted by the deteriorating relations between India and China since that time:
NO DIRECT FLIGHTS
For the past four years, there have been no direct flights between the two nations. China has been urging India to resume direct passenger flights, and India's aviation minister mentioned last month that discussions regarding an early reinstatement of scheduled flights were underway.
VISA REGULATIONS FOR CHINESE TECHNICIANS
In response to the border clashes, India intensified its scrutiny of visa applications from Chinese nationals. This increased scrutiny adversely affected several key manufacturing companies in India, as the stricter visa regulations prevented specialized engineers from China from entering the country, resulting in production setbacks.
Following complaints from the industry, India has recently opted to expedite the visa processing for Chinese technicians.
NEW INVESTMENT VETTING PROCEDURES
In 2020, India enhanced its examination of investments from companies in neighboring countries by introducing additional layers of vetting and security clearances. This move was largely perceived as an effort to prevent takeovers and investments from Chinese firms.
Consequently, billions of dollars in proposed investments have been stalled in the approval process over the past four years, including significant investments from companies such as BYD and Great Wall Motor that have either been delayed or abandoned.
BAN ON MOBILE APPS
India has prohibited approximately 300 Chinese mobile applications, citing concerns over data security and privacy. This ban includes well-known applications, such as the battle-royale game developed by Krafton Inc., a South Korean company with backing from China's Tencent.
XIAOMI ASSET FREEZE
Last year, Indian authorities charged the Chinese smartphone manufacturer Vivo Communication Technology with violating certain visa regulations and claimed it misappropriated $13 billion in funds.
India has now frozen over $600 million in assets belonging to Xiaomi, citing alleged unlawful remittances to overseas entities, with accusations that the company disguised these transactions as royalty payments.
Both companies from China have denied any allegations of misconduct.