India Calls for Revival of Business Ties With China

Indian Finance Minister Nirmala Sitharaman called Monday for a resumption of business relations with China, in the latest sign of reconciliation between the world’s two most populous nations.

The government should respond to calls by Indian stakeholders to loosen investment restrictions on Chinese firms, she said. This is especially reasonable in light of China’s recent diplomatic overtures.

We need more access, and we need to have a lot more interaction, and possibly open some windows. And that’s not just from our side; even the Chinese have been approaching through the [the Ministry of External Affairs of India]. There is something, some kind of a beginning. … How far it will go is something we will have to wait and see.
—Nirmala Sitharaman

Tensions: India and China have been rivals for decades, fueled by territorial disputes and competing ambitions for influence across Asia. In June of 2020, their territorial dispute exploded into violence that claimed the lives of 20 Indian and at least four Chinese soldiers. Their relationship at that time entered a period of intense strain.

Thaw: In October of 2024, Indian Prime Minister Narendra Modi initiated a thaw by meeting Chinese President Xi Jinping. He agreed to grant China de facto control over some disputed areas along their border. That landmark meeting was followed up earlier this month with a group of Indian officials traveling to Beijing—the first of such visits in five years. Led by External Affairs Minister S. Jaishankar, the Indians pledged to further improve India-China trade ties, reset diplomatic relations and further de-escalate border tensions.

Last week, India accelerated the reconciliation by resuming tourist visas for Chinese citizens after a five-year gap. The South China Morning Post called the move the “latest sign of a thaw between the two neighbors.”

Sitharaman’s call for a resumption of business relations suggests that the Indians are serious about moving past the rivalry and establishing a working relationship with China.

Prophesied partnership: Biblical prophecy shows that a partnership between India and China will emerge in the modern era, supported by Russia. Based on this, we anticipate that India and China’s ties will keep improving over the long term. To understand more about this alliance, order your free copy of our booklet Russia and China in Prophecy.