Chinese President Xi Jinping is anticipated to visit New Delhi this week for the annual BRICS summit, marking his first trip to India in seven years.
Beijing has not yet confirmed Xi's attendance or whether he will hold a meeting with Indian Prime Minister Narendra Modi. Such a meeting would be significant in establishing the future direction of bilateral ties.
The relationship between China and India has historically been wary, stemming from a 1962 war. Tensions intensified after a border skirmish in 2020 that killed 20 Indian soldiers and four Chinese soldiers.
Relations have improved in recent years, particularly since Modi visited China last year. Both nations face tense relations with the United States, adding a layer of shared diplomatic concern.
Despite diplomatic progress, businesses in both countries continue to face substantial hurdles: investments stalled by regulations, visa delays and restrictions on industrial equipment.
Lin Minwang, a South Asia expert at Shanghai's Fudan University and former diplomat at the Chinese Embassy in New Delhi, said China seeks to improve ties. The extent of India's willingness to reciprocate remains uncertain, he said, suggesting dramatic progress is unlikely.
Harsh Pant, vice president at the Observer Research Foundation think tank in New Delhi, said a high trust deficit exists between the countries. China has economic strength and an opportunity to become a reliable partner, Pant said, especially as both nations contend with U.S. trade policies.
In March, India eased some restrictions on Chinese investment that were imposed after the 2020 border clashes, focusing on sectors including electronics, capital goods and solar cells. New Delhi is also reviewing proposals for faster approvals of joint ventures between Indian and Chinese firms in certain industries, and has approved several significant projects, including a manufacturing collaboration between India's Dixon Technologies and Chinese smartphone maker Vivo Mobile.
But these measures have not been sufficient to reverse the pullback by major Chinese companies. Vehicle manufacturers BYD and Great Wall Motor shelved planned investments in India after encountering increased scrutiny from New Delhi. Chinese companies proposing investments in India also face heightened scrutiny from Beijing in sectors involving sophisticated manufacturing and high-end technology.
