New Delhi, Sept. 5 -- New Delhi: India is exploring whether a company with a small shareholding from a China-based or connected entity can be considered 'Chinese' firm, said three people aware of the matter, as New Delhi prepares to ease curbs on investments from its neighbouring nation to counter US tariffs.

Under the Press Note 3 (PN3) notification of 2020, investments from countries sharing land borders with India require New Delhi's approval. The increased scrutiny was largely targeted at China to curb opportunistic takeovers and acquisitions of Indian companies due to the covid-19 pandemic.

The commerce ministry has begun discussions with stakeholders to determine whether firms with even a small percentage of Chinese shareholding s...