New Delhi, Aug. 30 -- India has identified manufacturing, renewable energy and auto components for relaxing covid-era curbs on Chinese investments, as the Asian heavyweights warm up to each other under the heat of Trump's tariffs. The government is considering a plan to allow 20-25% Chinese investments in these sectors through the automatic route, two officials involved in the process told Mint on condition of anonymity. Under India's Press Note 3 notification in 2020, investments from neighbouring countries require New Delhi's approval involving tight scrutiny, a move targeted primarily at China. But US President Donald Trump's increasing tariff pressure on China and India has pushed the two economic giants closer. The relaxations in India's foreign direct investment (FDI) rules are expected to be announced shortly, as Prime Minister Narendra Modi visits China for the Shanghai Cooperation Organization summit, the officials said. "Sectors such as defence, security, strategic installations, exploration, and telecom installations have been kept out of the proposal," one of them said. "It is being considered to tweak the PN-3 after coming to the conclusion that allowing investments from Chinese firms could generate employment opportunities in India, since many of these companies already operate large manufacturing units in China and export their goods to the Indian market," the official added. However, the investments will be subject to strict scrutiny and surveillance, the second official said. Complaints related to Chinese investments will be reviewed on a case-to-case basis, and if a Chinese company invests in multiple sectors, scrutiny will apply only to the specific part under complaint, the official added. In manufacturing, Chinese funds would be allowed in the production of textile machinery, farm equipment, electrical goods, and auto components, the officials said. On Friday, the government held two meetings regarding the issue....