ALSO READIndia, China agree to reopen border trade, resume direct flights
According to CNBC-TV18, Niti Aayog has recommended lifting some of the restrictions under Press Note 3, pointing out that circumstances have changed since 2020. The policy was introduced at the peak of the pandemic to prevent “opportunistic takeovers” by investors from countries sharing land borders with India.
Government may ease FDI norms for Chinese investors
According to a tweet by CNBC-TV18 on X, the government may allow Chinese investments through the automatic route in non-sensitive and non-strategic areas. Until now, all proposals from such countries required prior government approval. Since 2020, approvals have been given only on a case-by-case basis.
ALSO READIndia-China Talks: From border peace to reviving cultural diplomacy – 10 Key takeaways from Wang Yi’s Delhi visit
Manufacturing and PE funds push for faster clearances
According to CNBC-TV18, manufacturing industries and private equity funds have made representations to the government, seeking faster and time-bound approvals under Press Note 3. They argue that Chinese capital is crucial in certain sectors and delays in clearances hurt business plans.
Modi–Xi meeting on SCO sidelines
Prime Minister Narendra Modi is scheduled to meet Chinese President Xi Jinping on the sidelines of the SCO summit in Tianjin from August 31 to September 1, with the focus on diversifying partnerships and strengthening regional cooperation at a time when India’s trade relations with the US are strained by tariff tensions.
The meeting follows Chinese Foreign Minister Wang Yi’s earlier visit to New Delhi on August 18–19, 2025, which signalled a thaw in bilateral ties after years of border friction. During that visit, both countries agreed to reopen border trade through three passes, resume direct flights, expand the Kailash Mansarovar Yatra, and reinforce diplomatic and military dialogue mechanisms to maintain peace along the Line of Actual Control.