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India plans to scrap curbs on Chinese firms bidding for government contracts

The finance ministry aims to lift restrictions imposed in 2020 after border clashes, affecting contracts worth up to $750 billion, to address shortages and revive trade.

  • On Jan 8, 2026, India's finance ministry plans to scrap five-year-old restrictions on Chinese firms bidding for government contracts to revive commercial ties amid reduced border tensions.
  • The 2020 measures required Chinese bidders to register and obtain political and security clearances, excluding Chinese state-owned CRRC from a $216 million contract and barring firms from tenders worth $700 billion to $750 billion.
  • Several ministries requested exemptions because shortages and delays followed the 2020 curbs, with awards to Chinese firms falling 27% to $1.67 billion in 2021, according to the Observer Research Foundation.
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India plans to scrap curbs on Chinese firms bidding for government contracts

The curbs, imposed in 2020 after a deadly clash between the countries' troops, required Chinese bidders to register with an Indian government committee and obtain political and security clearances

·India
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Times of India broke the news in India on Thursday, January 8, 2026.
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