Xi Jinping’s anticipated India visit could improve political relations, but businesses remain cautious amid investment and trade barriers.

Chinese President Xi Jinping’s anticipated visit to New Delhi for the BRICS summit could strengthen the recent diplomatic thaw between India and China, although significant obstacles continue to restrict business ties between the Asian neighbours.

Xi is widely expected to attend the summit this weekend, but Beijing has not officially confirmed his visit. It is also unclear whether he will hold a bilateral meeting with Prime Minister Narendra Modi, which analysts believe could determine the direction of relations between the two countries.

The visit would be Xi’s first trip to India in seven years. While diplomatic engagement has increased, companies continue to face investment scrutiny, visa difficulties and restrictions affecting the movement of industrial equipment and technology.

Relations between India and China have long been marked by strategic caution, shaped by the 1962 war and their unresolved border dispute. Ties deteriorated sharply following the 2020 Galwan Valley clash, which killed 20 Indian soldiers and four Chinese troops.

However, the relationship has shown signs of improvement in recent years. Modi visited China in 2025, and the two leaders reportedly met briefly at a regional forum in Kyrgyzstan earlier this month. China’s foreign ministry said both leaders viewed India and China as partners rather than competitors and as development opportunities rather than threats to each other.

Analysts remain cautious about expecting a dramatic breakthrough. Lin Minwang, a South Asia specialist at Shanghai’s Fudan University and a former diplomat at the Chinese Embassy in New Delhi, said China wanted better relations but was waiting to see how far India was prepared to proceed.

Harsh Pant of the Observer Research Foundation said the trust deficit remained high. However, he noted that China’s economic strength could create opportunities for cooperation, particularly as both countries face uncertainty linked to US trade policies.

India eased some restrictions on Chinese investment in March, focusing particularly on electronics, capital goods and solar-cell manufacturing. New Delhi is also considering faster approvals for joint ventures involving Indian and Chinese companies in selected industries. A few significant projects have received approval, including a manufacturing venture involving Dixon Technologies and Chinese smartphone company Vivo Mobile.

However, the policy changes have not persuaded several major Chinese companies to revive their earlier India plans. Chinese vehicle manufacturers BYD and Great Wall Motor shelved proposed investments after encountering greater scrutiny from New Delhi, according to a government source cited in the report. Both companies declined to comment.

India has also reportedly declined to approve a proposal that would have connected Alipay, a platform associated with China’s Ant Group, to the country’s instant-payment network, citing national-security concerns.

Separately, Indian authorities are considering a recommendation from the Serious Fraud Investigation Office concerning an investigation into alleged irregularities involving Xiaomi’s operations and foreign-investment compliance. Xiaomi has said it follows local laws and has received no communication from the agency.

Business obstacles are not limited to Indian regulations. Chinese authorities have reportedly increased scrutiny of proposed investments in India, particularly those involving sophisticated manufacturing and advanced technology.

Sources also claimed Chinese companies had been discouraged from supplying certain critical technologies and infrastructure products to India, including port machinery, solar equipment and mobile-manufacturing systems. China’s commerce ministry did not respond to a request for comment on those claims.

Indian industries have reported delays involving equipment and components sourced from China for electronics, solar-energy and infrastructure projects. Some tunnel-boring machines required for major projects have allegedly remained held up for more than a year.

Ajay Srivastava, founder of the Global Trade Research Initiative, said the delays went beyond routine administrative difficulties and indicated that China could use India’s dependence on imported technology and industrial inputs as leverage.

Visa access is another concern. India and China resumed direct flights in 2025, while New Delhi eased procedures for Chinese business professionals. However, some Indian businesspeople have reportedly faced recent difficulties in obtaining Chinese visas. China’s foreign ministry said it issues visas to Indian nationals who have a genuine requirement to visit the country in accordance with applicable laws and regulations.

A successful meeting between Xi and Modi could help address some of the barriers affecting trade, investment, technology and professional travel. Former senior Indian trade official Anup Wadhawan said meetings between top leaders provide opportunities to align political priorities with economic interests. He noted that commercial relations are ultimately driven by mutual economic benefits, but bilateral discussions can create conditions that allow those opportunities to develop.

India-China trade remains important to both countries, particularly because Indian manufacturers depend on Chinese machinery, components and raw materials across several industries. At the same time, New Delhi continues to balance commercial needs against national-security concerns and its goal of strengthening domestic manufacturing.

The BRICS summit could therefore provide an opening for both governments to rebuild confidence. Yet businesses are likely to wait for concrete policy changes before treating the diplomatic thaw as an economic reset.

Until Xi’s participation and a possible meeting with Modi are officially confirmed, expectations will remain measured. Even if the leaders meet, resolving the trust deficit and dismantling regulatory barriers will require sustained engagement beyond a single summit.