India has put all companies that are China-based or are associated with China under scrutiny for alleged links with People’s Liberation Army (PLA), Times of India reported.

The new rules laid to tracks Foreign Direct Investment (FDI) approval paves the way for India to check and monitor the flow of Chinese funds in the country.

India is also planning to keep an eye on Indian start-ups that are flourishing due to Chinese funds, as per the sources of the TOI.

“The data are being looked at, and the two agencies will decide the threshold and the system of reporting and monitoring, a government source cited in the TOI report.

“The new rules will help keep tabs on the beneficial owners, another source added.

This comes as India and China witnessed sudden escalation of border skirmishes along the Line of Actual Control (LAC). The casualties have been reported on both sides. However, China is yet to reveal the actual figure.

China and India’s army officials and diplomats are actively engaged in talks to de-escalate the border tension and redeploy the forces back to the agreed point, the New York Times reported.

Recently India banned 59 Chinese apps citing security concerns. Following that, UK, US, and Australia also put curbs on Chinese technology giant Huawei, accusing it of having connections with the PLA.