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Press Note 3 under focus
“We had a problem in Gawlan due to which we had a blip in relationship,” Goyal said. He, however, did not comment whether the provisions of Press Note 3 will be eased for faster clearance of Chinese FDI proposals. Under the Press Note 3, a committee of officials decides on all FDI applications from neighbours.
Press Note 3 came in April 2020. In June 2020 the border clash between Indian and Chinese troops in Gawlan led to further chill in India-China ties. Apart from greater scrutiny of FDI, India banned many popular Chinese mobile apps.
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Reset in trade ties
The visit of Prime Minister Narendra Modi to China after seven years for the summit of the Shanghai Cooperation Organisation (SCO) and his successful bilateral meeting with Chinese President Xi Jinping have raised hopes of better trade and economic ties between the two countries after more than a five-year freeze.
The condition of prior government approval for FDI from countries with which India shares land borders came at the start of the COVID outbreak that brought down asset prices sharply, making them an attractive target for opportunistic acquisition.