Indian government maintains investment restrictions on Chinese companies over ownership and military ties, citing national security concerns.

The Indian government is standing firm on its decision to maintain investment restrictions on Chinese companies, citing concerns over their opaque ownership structures and connections to the Chinese military. Despite calls from the private sector to relax the rules, the government remains cautious due to worries about China’s non-market economy practices and the potential impact on India’s manufacturing sector. This stance reflects the government’s heightened vigilance in safeguarding national interests and ensuring transparency in foreign investments. The decision underscores India’s commitment to protecting its economy and strategic sectors from potential risks associated with Chinese investments.

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