Chinese President Xi Jinping is expected to visit New Delhi this week for the BRICS Summit, his first India visit in seven years. The visit could support the recent diplomatic thaw between India and China, but major economic and business concerns remain unresolved. Both countries have taken steps to improve relations, including restoring direct flights and easing some visa and investment restrictions. However, businesses continue to face regulatory scrutiny, visa difficulties and restrictions involving technology and industrial equipment. The developments show that diplomatic engagement is improving faster than trust between the two economies.Can Xi Visit Improve Ties?Xi Jinping’s expected India visit could give fresh momentum to efforts to stabilise relations, particularly if he meets Prime Minister Narendra Modi during the BRICS Summit. The two countries have gradually reduced some tensions since the border disengagement process, but economic cooperation remains affected by security concerns and mutual suspicion. A successful diplomatic meeting could help create space for further dialogue, but it may not immediately remove business barriers.Xi’s expected visit would be his first to India in seven years.India is hosting the BRICS Summit in New Delhi.Direct flights between India and China have resumed.India has eased some restrictions on Chinese investment.Business and technology concerns continue to limit deeper economic cooperation.Ties Still Carry Border BaggageIndia-China relations deteriorated sharply after the 2020 border clash in the Galwan Valley, which killed 20 Indian soldiers and four Chinese soldiers. The confrontation severely affected political trust, investment and wider business engagement between the two countries. Since then, both sides have worked through diplomatic and military channels to maintain peace along the border.Relations have shown some improvement over the past two years. Modi and Xi held talks in Kazan in October 2024 and again met on the sidelines of the SCO Summit in August 2025. India and China have also moved to restore direct air links and facilitate travel, while New Delhi has relaxed some investment restrictions in sectors such as electronics, capital goods and solar manufacturing.Also Read: India-China Relations Thaw Could Redefine BRICS and Global GeopoliticsBusiness Trust Remains FragileDespite the diplomatic progress, companies on both sides continue to face obstacles. Reuters reported that investments have been held back by regulatory scrutiny, visa delays and restrictions involving industrial equipment. Some major Chinese companies, including BYD and Great Wall Motor, have shelved planned investments in India amid heightened scrutiny.There are also concerns about technology and trade dependence. India has declined some Chinese investment proposals on national-security grounds, while Chinese authorities have reportedly placed restrictions on the transfer of certain critical technologies and equipment to India. These issues underline why improved political communication has not yet translated into a broad business revival.Key HighlightsXi Jinping is expected in New Delhi for the BRICS Summit.The visit would be his first to India since 2019.India-China diplomatic relations have improved gradually since 2024.Direct flights and some visa facilitation measures have resumed.India has relaxed selected restrictions on Chinese investment.Business ties remain affected by regulatory and strategic concerns.Diplomatic Thaw Faces ChallengesXi’s expected India visit represents an important opportunity for both countries to maintain the recent diplomatic momentum. However, rebuilding commercial confidence will require more than high-level meetings. Border stability, investment rules, technology access, visas and trade concerns will remain important tests for the relationship. For now, India-China ties appear to be moving toward cautious engagement rather than a complete return to normal business relations.Disclaimer: This article is provided for knowledge and news-information purposes only. It is based on currently available reports and does not constitute professional political, economic or investment advice.
