things were already tensed between India and China after the 2017 dolam standoff and the prior Chinese incursions into deang planes then in June 2020 galwan happened when Chinese soldiers attacked an unarmed border patrol resulting in the unfortunate death of 20 Indian soldiers in a wave of anti-china sentiments Indians pledged to stop buying made in China products hoping to teach them a lesson the Indian government too got tough with the northern neighbors Banning tick tock G and 220 other Chinese apps and discouraged Indian Telos from using Chinese 5G Tech from Huawei and ZTE by then already in the works was the famous press Note 3 which restricted automatic FDI and FBI approvals from neighboring companies re China before pn3 the likes of Alibaba and 10cent had invested in 18 of India's 30 unicorns now they were banned from topping up their Investments meanwhile India stepped up the construction of infrastructure and Roads bordering China like the DS dbo road that gave Indian troops easy access to CPC Cen and the karakorum pass it had the elite sff troops occupy the heights of chel which could be used as a bargaining chip in case of a military stalemate rejected 58 Chinese FDI proposals worth billions of dollars including investment from Great Wall Motors and byd to set up plans in India when the Chinese look to get Indian partners that two was put put on hold while India and China were engaged in a progressive faceof the world's opinion soured against China and looked for a China plus one strategy which only strengthened India's resolve Apple Tesla Etc lined up looking to make investments in India with the former promising to move a quarter of his production out of China into India with great Fanfare India announced its PL scheme in 14 Industries hoping to attract billions of dollars in investment initially these measures seemed effective during covid when imports from China dropped and exports Rose but that was only temporary as immediately after bilateral trade with China skyrocketed to $18.4 billion in f24 making it India's top trading partner this is because India's economy remains deeply dependent on Chinese Imports which are far cheaper than imports from other countries therefore India's move to curtail Imports of motherboards ICS pcbs Etc from China was a non-starter further despite four years in the running the pl scheme has thus far only been successful with apple in the mobile segment seeing the rising trade deficit with China ballooning to $85 billion in f24 and enthused by Apple's massive 12 plus billion dollar worth of exports a company mentioned no less than five times in the government's economic survey India's chief economic advisor suggested opening up its shes to Chinese Investments barring in sensitive sectors to boost Indian manufacturing and exports and strengthen India's role in the global supply chain there is proof this could work when the US imposed restrictions on imports from China during Trump's term China invested heavily in Mexico and Vietnam to overcome this obstacle resulting in Mexico becoming the largest Goods trading partner of the US in 2023 surpassing China and Canada with a total trade of almost $800 billion similarly us imports from Vietnam doubled from 46 billion to 114 billion ironically showing that one cannot move Supply chains away from China without the active participation of Chinese companies and this is also the reason why India has failed to attract their stated aim of net hundred billion annually over the next 5 years because foreign companies using Chinese Supply chains hesitated to set up in India as they were not sure if the Indian government would give them permission there is also a point of view that in increasing trade and investment with China will lead to more stable relations because China will have a lot more to lose in the event of A disruption so the Modi governments in the past 6 months chained their stance on Chinese FDI allowing them to invest provided an Indian partner held a majority stake so vas's proposal for a minority stake in a JV with China's highly group did not receive approval forcing the company to scrap the plan while mg motor owned sake Motors sold their majority state to to jsw and got a not to expand in India with five new models by 2025 AC maker H got approval after almost 2 and 1/2 years to set up an airon component manufacturing plant and Dixon Technologies plans a JV to manufacture LCDs thin film transistors smartphones and TVs with two Chinese companies visa for Chinese technicians that the government sat on for months and that were delaying PL projects were also fast-tracked but if the key aim by this move is to develop India's ability in solar panels and Battery manufacturing sectors why is it that Reliance retail was permitted to launch the Chinese fast fashion label Shane considering it is not of any strategic importance to the country there are also two opinions of how much India will benefit in power intensive Industries like solar panels where China has structural cost advantages however there is no doubt that there will be other spin-off benefits like technology transfer learning of best practice practices in manufacturing and upskilling of Manpower take the case of toys for over a decade India relied on China for 76% of toy Imports but it soon reduced import dependence to 12% as Indian manufacturing units doubled becoming a net exporter of toys however sensing that backtracking on China could be politically embarrassing politicians mouthed platitudes for public consumption there is no rethinking at present to support Chinese investments in the the country Indians will not like this policy but Modi and his finance ministry realized that this is needed no policy comes without its pros and cons and sometimes what is good for the country in the long run should be more important than current political sentiment as long as there's no backtracking on India's Integrity on the border which is never going to happen in this or any future government it's all good bisbo liic business with China is the need of the AR IC chip solar panels and electric cars but neighbor beware a promise we swear we'll defend our borders with all of our PS you will also find these sources listed in our video description section