India, April 21 -- Amid the US tariff war, the Centre is reportedly planning to cap Chinese investments in electronics joint ventures at 10%, contingent on technology transfer, prioritising local manufacturing development.

An ET report, citing officials privy to the matter, said that preference will be given to electronics contract manufacturers or supply chain firms from the neighboring country, rather than Chinese brands, when it comes to equity ownership.

"As the Indian firms need technology transfer, the government is likely to allow 10% Chinese equity in joint ventures. But there won't be open gates for Chinese investments in electronics or other sectors," an official said.

The officials also told ET that the government is willing...