India's new rules for foreign investment violate WTO principles of non-discrimination and are against free and fair trade, a Chinese embassy spokesperson in New Delhi said on Monday.

On Saturday, India stepped up scrutiny of investments from companies based in neighbouring countries, in what is widely seen as a move to stave off takeovers by Chinese firms during the coronavirus outbreak.

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"The impact of the policy on Chinese investors is clear," spokesperson of the Chinese embassy Ji Rong said in a statement.

India's trade ministry said in a notification dated April 17 the changes to federal rules on investment were meant to curb "opportunistic takeovers/acquisitions". It did not mention China.

China hopes India will revise 'discriminatory practices', treat investments from different countries equally, the spokesperson said.

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