India to Ease 2020 Curbs on Chinese Govt Bids

India's finance ministry is preparing to lift restrictions that have barred Chinese companies from bidding on government contracts since 2020, according to officials familiar with the matter. The move, reported on Thursday, aims to address project delays and equipment shortages in key sectors, as bilateral ties with China show signs of improvement following years of tension.

The restrictions, introduced in July 2020 under amendments to the General Financial Rules, required bidders from countries sharing a land border with India, including China, to register with a government committee and obtain political and security clearances from the external affairs and home ministries. While not explicitly targeting China, the measures effectively sidelined Chinese firms from public procurement tenders valued at 700 billion to 750 billion rupees annually. For instance, state-owned Chinese firm CRRC was disqualified from a 216 million dollar train manufacturing contract shortly after the rules took effect, and new project awards to Chinese companies dropped 27 percent to 1.67 billion dollars in 2021.

Officials said the proposal stems from practical challenges faced by various government...