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Xi’s India Visit May Improve Diplomatic Ties, But Business Mistrust Remains. Xi’s expected India visit could improve diplomatic ties, but business mistrust continues to hinder economic cooperation. His India trip in seven years comes as relations improve after years of border tensions again. However, companies face investment restrictions, visa delays, and difficulties obtaining Chinese equipment needed for major projects. India recently eased restrictions on Chinese investment, approving ventures, including smartphone partnerships involving Vivo and Dixon. Yet major Chinese automakers BYD and Great Wall Motor shelved planned investments amid increased government scrutiny. Both governments call their countries partners, but analysts warn that a trust deficit remains between them. Businesses report Chinese customs delays affecting solar panels, electronics components, and infrastructure equipment for Indian projects. These obstacles show economic dependence can become leverage, despite resumed flights and improved visa procedures recently.
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