New Delhi, March 23 -- India has recently tweaked Press Note 3 (2026), reopening the door to Chinese investment despite persistent security concerns. This marks a significant shift from the restrictions imposed after the Galwan Valley clash, which led to the tightening of foreign investment norms from countries sharing land borders with India.

The revised policy permits Chinese investments through the automatic route, albeit with a caveat: only companies with less than 10 percent Chinese equity are eligible. While the move signals a cautious economic opening, its limitations raise questions about its effectiveness in achieving India's broader industrial and trade objectives.

Rationale Behind 10 Percent Cap

The 10 percent ceiling on Chi...