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Indian startups face a new normal amid China conflict

New FDI rules under close scrutiny as bilateral relationship deteriorates

TOKYO -- The dramatic rise in anti-China sentiment among the Indian public and leaders triggered by a border clash between two countries looks set to rewrite the financial playbook for Indian startups.

Fighting between the world's two most populous nations resulted in deaths for first time in 45 years. That set off a wage of anti-Chinese demonstrations in India and calls for boycotts of Chinese products. High-profile Indian startups, many of which rely on funding from Chinese investors, may also fall victim to the nationalistic backlash.

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