The not-so-great visa wall of China: Why Indian business is stuck

China's touchiness over national security is affecting business visas being granted to Indians, and poses a challenge to normalising economic engagement between the two countries. India and China agreed last year to resume direct flights. New Delhi subsequently eased investment restrictions on Chinese companies.

These measures were intended to separate strategic and economic relations between the neighbours. Beijing has since tightened its security matrix to prevent sensitive industrial information and technologies from leaking out of the country. As a result, Indian execs are hitting a Chinese visa wall. Meetings in third countries don't serve the purpose for medium enterprises in India that are dependent on on-site visits to Chinese suppliers for procurement. So, what's up with Beijing?

Also Read: Ganga Aarti on the Thames: India’s river ritual can transcend borders


China's use of export controls on rare earth elements as leverage in trade disputes has caused supply bottlenecks in Indian manufacturing. New Delhi has had to intervene to avert disruptions to the automobile and electronics industries. But Chinese manufacturing exports have remained robust and India remains a significant destination.

So, there are economic limits to the new visa dispensation taking shape in China. The situation can be normalised with a proactive diplomatic initiative by New Delhi. India can make the case of an easier investment environment to work on Chinese trade security concerns.

Also Read: AI in Indian banking: Why technology may reshape jobs, not replace bankers

Trade disruptions caused by US tariff action require China and India to seek out common ground over globalisation. Cross-border trade and investment flows have to be secured against geopolitical uncertainty. Since China persists in its investment-led growth strategy, it needs access to markets where domestic consumption is strong. India offers that to China, as well as a base to diversify global manufacturing supply chains. This can happen only in an environment of receding suspicion. New Delhi may have to work on its powers of persuasion to get around Beijing's business visa wall in the first instance.