External Affairs Minister S. Jaishankar emphasized the importance of a balanced approach for Indian businesses dealing with China during a recent event organized by the Associated Chambers of Commerce & Industry of India (ASSOCHAM). He highlighted that while China represents a significant portion of global manufacturing and is integral to many supply chains, India must avoid excessive dependence on it, especially given the strained political relations between the two nations over the past few years due to border tensions.

Jaishankar noted that recent diplomatic engagements have led to some progress in resolving friction points along the Line of Actual Control (LAC), but further discussions are necessary to ensure stability and mutual benefit in trade. He cautioned against allowing India to become merely a market for Chinese products, stressing the need for Indian industries, particularly micro, small, and medium enterprises (MSMEs), to be competitive.

He also pointed out that India's relationship with China has been "abnormal" since 2020, primarily due to aggressive actions by China along the border. The minister reiterated India's commitment to engaging with China to establish a fair framework for boundary settlement while maintaining that peace at the border is crucial for normalizing bilateral ties.