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 directly 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 relaxa...