Prime Minister Narendra Modi and Chinese President Xi Jinping took a conciliatory tone on Sunday, emphasizing that India and China must see themselves as partners in development, not competitors.
Their meeting was on the sidelines of the Shanghai Cooperation Organisation (SCO) summit in China, to which attended Russian President Vladimir Putin, Iranian and Pakistani leaders, and Central Asian leaders in a show of Global South solidarity.
The talks between Modi and Xi took place against the backdrop of rising global tariff tensions. Just days earlier, U.S. President Donald Trump announced a sweeping 50% tariff on Indian goods, partly in retaliation for New Delhi’s purchase of Russian oil. The move has strained Washington’s relationship with India, which U.S. officials had long hoped would act as a regional counterweight to Beijing.
Trade, Border Peace, and Development
In their talks, Modi stressed India’s commitment to deepening bilateral relations with China despite longstanding issues. He urged minimizing the trade deficit between the two countries, which this year hit a record $99.2 billion. Modi also highlighted the value of peace and stability on the disputed Himalayan border, where a 2020 confrontation killed 20 Indian and four Chinese soldiers and led to a months-long military standoff.
“We are committed to progressing our relations based on mutual respect, trust and sensitivities,” Modi said in remarks shared on his official X account. He added that cooperation between India and China directly impacts the lives of 2.8 billion people, representing the world’s two most populous nations.
Xi, speaking in the same vein, told state media Xinhua that India and China “are each other’s development opportunities rather than threats.” “We must not let the border issue define the overall China-India relationship,” he said, emphasising that relations could be “stable and far-reaching” if the two countries kept a focus on partnership.
Signs of Normalisation
Indian Foreign Secretary Vikram Misri informed journalists that the border situation is better since an agreement on patrolling was signed in October 2023. “The border situation is tending towards normalisation,” he stated.
Direct flights between China and India, suspended since the 2020 COVID-19 pandemic, will resume, Modi assured, although there has been no announcement of when. China also recently made a commitment to relax export controls on rare earths, fertilisers, and tunnel-boring machines with a visit by Chinese Foreign Minister Wang Yi to New Delhi.
Besides this, China has also eased the restriction on Indian pilgrims going to Tibetan Buddhist and Hindu shrines, and the two nations have also canceled reciprocal tourist visa restrictions. Chinese Ambassador to India Xu Feihong said last month that Beijing “firmly stands with India” in opposition to Washington’s hefty tariffs.
Global and Regional Issues
Modi and Xi also discussed global economic uncertainties, terrorism, and equitable trade practices in multilateral contexts, India’s foreign ministry said. Analysts say their discussions reflect a common interest in coordinating against Western trade pressures and coping with long-term bilateral issues.
Manoj Kewalramani, a Sino-Indian affairs researcher at the Takshashila Institution in Bengaluru, said, “The readouts suggest a lot of mixed political signalling … But there’s also a sense of the need to stabilise the relationship in the context of broader geopolitical currents.”
Lingering Tensions
While there has been recent improvement, structural problems persist. China remains India’s largest bilateral trade partner but the increasingly large trade deficit is a chronic cause of irritation in New Delhi. There are also environmental issues, with China proposing a huge hydroelectric dam in Tibet that Indian authorities fear will cut Brahmaputra River flows by as much as 85% during the dry season.
Diplomatic irritants too lurk in the shadows, such as India’s sheltering the Dalai Lama, the exiled Tibetan spiritual leader, and China’s increasing alignment with Pakistan, India’s regional nemesis.
Despite this, Sunday’s encounter between Modi and Xi represents another move towards cautious rapprochement. As trade tensions, border tensions, and shifting alliances define the international order, the two leaders seemed intent on positioning India and China as partners, not rivals.
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