The Indian government has decided to clear some new investment proposals from China in the coming weeks as frosty relations between the two neighboring countries thawed amid an easing in border tensions, said three government officials anonymously.
Last week, India and China began disengagement from the Pangong Tso area, in the Ladakh region of the western Himalayas, following a nearly nine-month-long standoff after the worst clash between the neighboring countries since 1962.
At the height of the tensions, India formed various policies targeting China, including blocking the nation from participating in government tenders, compelling any Chinese company investing in India to seek approvals, and banning dozens of Chinese apps.
The foreign investment rule change by the Indian government states that investments from an entity in a country that shares a land border with India would require government approval, markedly slowing investment flows from China.
The rule change had put in limbo over 150 proposals from China worth more than $2 billion, hurting the plans of Chinese companies in India. Among the proposals delayed was China's Great Wall Motors' acquisition of a General Motors' plant in India.