The situation has reached a stalemate between India and China even after many rounds of discussion over the Ladakh issue. After a series of measures taken by the Indian government on trade front, still India cannot see any corresponding withdrawal of Chinese army on the ground.

Indian government has started discussion on other trade front measures including Chinese power companies to be kept out of any future projects. Similar actions can be seen in the near future by the Narendra Modi Government. India has decided not to stop at this and they are clear that the bilateral ties are directly linked with the border peace and will not allow them on a parallel track as in the past.

With the People’s Liberation Army still in a forward position on the Pangong Tso and Gogra-Hot Springs region of Ladakh and showing no signs of a promised de-escalation, The Narendra Modi government is considering taking further action against China on the economic front so that a message can be given at home that India means business.

According to senior government officials familiar with the matter, the top China Study Group on Monday discussed PLA action on the ground in Ladakh and its military posture in the Tibet-occupied Aksai Chin region.

The CSG, which has India’s most senior ministers, military leaders, and bureaucrats as members, is the body that recommends the country’s course on the action with China.

While China wants India to normalize diplomatic relations on a one-on-one basis, the Modi government strongly believes that anything less than the status quo in the Ladakh region is unacceptable with no cost attached.

Despite being aggressive, the PLA believes that its troops are well within their perception of the Line of Actual Control in Ladakh.

The two decided that the two sides would disintegrate completely and then de-escalate, but a month later, the situation reached a deadlock with China offering a diplomatic face-off, any similar return to the ground.

Now that the US has taken action against Huawei and its subsidiaries for espionage, it is clear that India will exclude Chinese communications and power companies from any future projects.