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Story summary
- The Finance Ministry of India plans to lift restrictions on Chinese firms bidding for government contracts, reversing 2020 rules that blocked their participation.
- The change, reported on January 8, 2026, aims to boost trade ties after reduced border tensions.
- The restrictions had previously led to a 27% drop in projects awarded to Chinese bidders.
- The final decision will be made by Prime Minister Narendra Modi's office.
- Despite easing bidding rules, India will maintain strict controls on Chinese investments in sensitive sectors like defense and nuclear energy.
