How India’s CEOs Made the Case for Better China Ties

Conflict is seldom good for business. That lesson may have been forgotten in recent years, as the world swung away from the increasing trade and economic engagement that had been the norm for decades, and instead leaned toward protectionism and political expediency. But Indian Prime Minister Narendra Modi got a loud reminder from his country’s CEOs. After a 2020 border clash killed at least 20 Indian soldiers, Modi took a range of steps to block investment from China, even going further than the US in some areas. The stringent measures led to the collapse of several investments proposals, including BYD’s $1 billion plan to build electric vehicles in India. This week, in a significant easing of tensions, Modi met Chinese President Xi Jinping at the BRICS summit in Russia, where the two leaders pledged to stabilize relations. Here’s how the Indian business community made the case for a rapprochement.

Improving ties would also benefit Chinese companies which, along with other global corporations, are eyeing India’s fast-growing economy with growing enthusiasm. Nvidia chief Jensen Huang is forging partnerships with India’s biggest corporate names from Reliance Industries to Infosys, underscoring the importance of the world’s most populous country to the AI pioneer’s future. The US chip company, which is holding one of its summits in Mumbai, highlighted the ways Indian partners across industries are using its technology to bolster their products and services.