Following a deadly clash in the Galwan Valley in June 2020, India has implemented economic retaliations against China. A new policy restricts investments from countries sharing a land border with India, impacting mergers, acquisitions, and FDI. This move aims to counter Chinese aggression without escalating military conflict, as neither side fired shots during the border skirmish, which resulted in 20 Indian fatalities and an unconfirmed number of Chinese casualties.