China India Photo:CFP

Several Chinese companies involved in fashion e-commerce, smartphone manufacturing and electronics are re-entering or expanding footprint the Indian market, according to multiple reports from Indian media. A Chinese expert noted that this reflects a positive development in bilateral economic and trade cooperation, urging India to offer fairer market treatment and a better business environment for Chinese enterprises.

The Indian government recently confirmed that it has no objections to allowing local company Reliance Retail Ventures to sell Shein products on an e-commerce platform developed in India, the Times of India reported. This marks the Chinese fast-fashion e-commerce giant's return to the Indian market after a 2020 ban, according to the report. 

The Economic Times reported that Chinese smartphone giant Vivo has recently partnered with local manufacturing firm Dixon Technologies to set up a new venture in India.

Top Chinese electronics and home appliance maker Hisense is also actively expanding its footprint in the Indian market. The company plans to acquire a stake of up to 26 percent in local company Epack Durable's wholly owned subsidiary, the Economic Times reported on Tuesday.

Political factors have in the past affected bilateral trade relations between China and India, but the recent warming of diplomatic relations suggests a positive upturn for reinstating economic, trade and people-to-people exchanges, Liu Xiaoxue, an associate research fellow at the National Institute of International Strategy under the Chinese Academy of Social Sciences, told the Global Times on Wednesday.   

"Amid economic growth challenges, India's push to develop its manufacturing sector requires Chinese investment and technology, while Chinese firms are interested in tapping into the Indian market," Liu said, adding that this creates a solid foundation and vast potential for elevating bilateral economic ties.

However, India's openness to Chinese firms comes with conditions. The return of Shein to India is subject to strict regulations to ensure full local control over operations and data. Reliance Retail will maintain complete ownership of the platform and manage all national aspects, while the infrastructure will be housed entirely in India, according to Times of India. 

On December 18, China and India held the 23rd meeting of Special Representatives for China-India Boundary Question in Beijing. At the meeting, Member of the Political Bureau of the CPC Central Committee, and Director of the Office of the Central Commission for Foreign Affairs Wang Yi said China and India need to have candid communication, enhance mutual trust, build consensus, and promote cooperation. It is important to channel the two countries' respective valuable resources into development and revitalization, make sure that the boundary question is appropriately placed in bilateral relations, jointly maintain peace and tranquility in border areas, and strive to bring China-India relations back to a healthy and steady track at an early date.

"India should offer fairer market treatment and a better business environment to Chinese enterprises, encouraging increased investment from China, given that both countries have significant potential for cooperation in various sectors, such as manufacturing, high-end services, technology and tourism," Liu said.

Liu mentioned that normal economic and cultural exchanges between China and India are still being held back by other issues, such as visa restrictions India has placed on Chinese citizens.

Chinese Foreign Minister Wang Yi urged in November's meeting with Subrahmanyam Jaishankar, India's external affairs minister, that the two sides should strive to make practical progress in such issues as resuming direct flights, exchanging journalists and easing visa procedures as soon as possible.