Move marks latest sign of rapprochement between two Asian giants.

India approved easing restrictions on Chinese investments in select sectors, the government said, to help ease a capital squeeze and marking a reset of economic ties after six years of friction.

Prime Minister Narendra Modi’s cabinet ​approved changes to foreign direct investment rules that restricted investments from China and other land‑bordering countries, ​to allow investments in electronics, capital goods and solar cell sectors, according to a ⁠statement.

Chinese investments in these sectors will be processed within 60 days provided the majority shareholding rests with an ​Indian resident at all times, the statement said.

In 2020, New Delhi had tightened scrutiny of investments from Chinese companies, ​as relations between the two nuclear nations soured after clashes between their soldiers on their largely undemarcated Himalayan frontier killed 20 Indian and four Chinese soldiers.

Since then, investments by Chinese entities in Indian companies have required security clearance from a panel comprising ​India’s home and foreign ministries.

Due to these restrictions, deals such as a 2023 plan by China’s BYD (002594.SZ), opens new tab to ​invest $1 billion in an electric car joint venture, were shelved.