India Rethinks China Trade Policy Amid Trump's Stance, Eyes Economic Revival

• New Delhi considers easing restrictions on Chinese companies, balancing economic needs and strategic interests against Trump's uncertain policies.
• Modi government focuses on economic impact, employment, and domestic production over nationalism, rethinking post-2020 curbs.
• Investments creating jobs and enhancing domestic capabilities from Chinese firms may be welcomed, especially in non-strategic sectors.
• Strict controls will remain on sensitive sectors like telecom, defense, and strategic infrastructure.
• Possible relaxation of FDI rules (Press Note 3) and participation in government procurement for non-strategic areas are under discussion.

Why It Matters: India is re-evaluating its trade policy with China, prioritizing economic growth and job creation while maintaining strategic security.