Government of India may finally give a policy twist to the China investment concerns. Government may set a cap of 10% beneficial ownership in the case of FDI flows from 7 countries. These seven countries include China and other countries contiguous to India. This will avoid indirect flows into India. The target of Indian policymakers is clearly to keep a tab on the flows from China to avoid any tacit loss of control. The security bogey reached a crescendo after HDFC admitted that Chinese banks owned more than 1% in the company. In addition, the government is also likely to insist on prior government approval. With the Chinese becoming the wealthiest investors, this could surely hit FDI flows into India.