India builds trade barriers with China amid border row

India slapped new trade curbs on some of its neighbors, in a move primarily seen aimed at keeping Chinese businesses out after a border conflict and worsening economic ties between the two nations.

Companies from nations that share a land border with India are barred from bidding for government contracts for goods and services until they register with the industry department, according to an official statement. Previously, New Delhi had made it mandatory for suppliers to mention the country of origin on the government’s e-Marketplace while bidding for tenders.

The measure is the latest in a series of steps taken by Prime Minister Narendra Modi’s government to wean India away from reliance on China—New Delhi’s biggest source of imports. Earlier, the administration banned the use of 59 Chinese apps, while goods purchased from China were delayed at Indian ports after a deadly conflict between the neighbors along a disputed Himalayan border left several soldiers dead on both sides.

Other key points from the latest move:

• Norms have been relaxed in some cases, including procurement of medical supplies for containment of Covid-19, until Dec. 31
• New rules to apply to all new tenders; in cases where tenders have already been invited, if the initial stage of evaluation of eligibility has not been completed, unregistered bidders will not qualify
• Contractors won’t be allowed to even sub-contract to the unregistered entities from nations sharing a land border with India
• Tenders will be canceled if the first stage of evaluation is complete
• New norms to apply to state-run banks and and financial institutions, state-run companies and public private partnership projects receiving financial support from the government