India-China business thaw: Firms accelerate JV talks after PM Modi-Xi Jinping meet; positive sentiment lifts industry

Indian and Chinese companies are moving quickly to firm up joint ventures and partnerships in electronics and automobiles after the recent meeting between Prime Minister Narendra Modi and Chinese President Xi Jinping.Both leaders have pledged to improve ties, a signal that has boosted business sentiment amid US tariff pressures.According to industry executives cited by ET, Haier’s plan to sell 49% in its Indian subsidiary has “gained tremendous pace” over the past two days. Negotiations with industrialist Sunil Mittal, which had slowed earlier, have now revived, with 49% expected to remain with Haier and 2% earmarked for employees.Electronics manufacturer Dixon Technologies is preparing to file its Press Note 3 application for a joint venture with Chongqing Yuhai to produce precision components such as laptop enclosures. A senior executive was quoted by ET as saying that the company is also awaiting approvals for pending joint ventures with HKC and Vivo.The auto sector is equally upbeat. Import restrictions on heavy rare earth magnets from China since April had disrupted EV production, particularly for Bajaj Auto.

“There is expectation things will move after the PM visit,” an auto component executive said, as per ET.Several Indian executives, including leaders from Dixon, Micromax-owned Bhagwati Products and PG Electroplast, are planning to travel to China soon to finalise deals. “The mood is very upbeat right now in Chinese companies as far as India is concerned,” Rajesh Agarwal of Bhagwati Products was quoted as saying by ET, adding that cordial ties between leaders have accelerated joint venture plans.Ashok Leyland has already signed a long-term exclusive partnership with Chinese battery maker CALB Group to develop and manufacture next-generation batteries for both automotive and non-automotive use. Hinduja Group’s Shom Hinduja and Ashok Leyland MD Shenu Agarwal were in China on Monday to seal the agreement.Aalok Shah, head of global advisory for India at Rothschild & Co, said that electronics manufacturers are optimistic. He added that Chinese technology investors who were earlier hesitant are “now expecting to get entry approvals faster.”