China has threatened to curtail hundreds of millions of dollars of investments in India following India's deployment of more troops and 100 T-72 tanks to its disputed border with China in the Ladakh region of Jammu and Kashmir.

The Chinese Ministry of Commerce conveyed Beijing's displeasure at the huge boost in Indian military power, saying the central government is considering rethinking China's investments in India. It described India's move to strengthen its tense border as a provocation.

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Chinese investments in India jumped to $ 870 million in 2015, a six-fold increase year-on-year due mainly to India easing restrictions on Chinese firms and the imposition of tax rates favorable to the Chinese. China's foreign investments increased 59% in the first half of this year compared to the same period in 2015.

Global Times, a propaganda mouthpiece of the Communist Party of China, finds it puzzling "that while deploying tanks near China's border, India still strives to woo Chinese investment."

It noted that "a great number of Chinese firms, including smartphone manufacturer Xiaomi and PC computer maker Lenovo, have turned their eyes toward India," and by saying so implies these investments might now be in jeopardy.

 "A media report stating that nearly 100 Indian tanks have been positioned near the Indo-China border to counter any possible threat grabbed people's attention as more Chinese firms are looking to increase their investment in India," said a story in Global Times.

The paper reminded readers India is not an easy country to do business in, but China has kept investing in India nonetheless.

"In an index on the ease of doing business, from the World Bank, India currently ranks 130 out of 189. Despite India's stated goal to rise to within the top 100 this year, the nation still has its work cut out for them."

For India to ensure continued Chinese investments, it needs to set aside political disputes and put regional tensions to rest, a statement that tacitly implies India must also refrain from taking sides in China's simmering dispute against the United States in the South China Sea.

"In order for that possibility to become a reality, both China and India will need to work hard to clear up misunderstandings in a bid to lay a solid foundation for the sustainable development of economic and trade cooperation," said Global Times.

"In the long run, there is large potential for a successful relationship between China and India, especially in the manufacturing sector." 

Tagschina, India, Ladakh, T-72, Global Times