India will restrict Chinese companies from bidding for government contracts, citing “national security” concerns as New Delhi looks to loosen economic ties with its neighbor after a fatal border brawl, reported the Financial Times.
The government said that any bidder from a country sharing a land border with India would be required to register with the commerce ministry and receive “political and security clearance” from the foreign and home ministries.
The move most explicitly affects China as the new rules make clear that some other neighbors, such as Nepal and Bangladesh, would effectively be exempt.
The curbs are designed “to strengthen the defense of India and national security”, the finance ministry said. They also apply to state governments, state banks and other public-sector companies.