Modi Seeks Fresh Start with China Before SCO Summit
Prime Minister Narendra Modi’s first visit to China in seven years marks a new chapter in India-China relations. The most important diplomatic trip follows the 2020 Galwan clash that damaged bilateral ties badly and claimed lives of 20 Indian and four Chinese soldiers. Members of the Indian community warmly welcomed Modi with patriotic chants of “Bharat Mata ki Jai” and “Vande Mataram”.
This crucial meeting marks the 75th anniversary of China-India diplomatic relations. The nuclear-armed neighbors share a poorly marked 3,800 km border that remains disputed since the 1950s. Modi’s discussions focused on reducing India’s growing bilateral trade deficit of nearly $99.2 billion. The diplomatic talks gain extra significance as Washington recently imposed 50% tariffs on Indian goods over New Delhi’s Russian oil purchases. Relations between India and China seem to move toward cooperation now. Modi has invited Xi Jinping to the 2026 BRICS Summit, which hints at possible long-term engagement between these Asian powers.
Modi Meets Xi Jinping Ahead of SCO Summit
Prime Minister Narendra Modi and Chinese President Xi Jinping met for crucial bilateral talks on August 31, 2025. This meeting marked a key moment in India-China relations. Leaders from Russia, Iran, Pakistan, and four Central Asian states gathered in Tianjin, China for the Shanghai Cooperation Organization (SCO) Summit. The summit showcased Global South solidarity.
Leaders hold 50-minute bilateral meeting in Tianjin
Modi and Xi’s discussions lasted 50 minutes. They covered several key topics on their agenda. Modi started by highlighting India’s dedication to building ties with China based on “mutual trust, respect and sensitivity”. He pointed out that relations had taken “a meaningful direction” and praised the peace at borders after last year’s disengagement.
Xi spoke about their meeting’s global importance. “The World is going towards transformation. China and India are two of the most civilizational countries. We are the world’s two most populous countries and part of the Global South… It is vital to be friends, a good neighbor, and the Dragon and the Elephant to come together…”. He suggested both nations should look at their relationship from a “strategic height and long-term perspective”.
The leaders welcomed positive developments in their bilateral relations. They explored common ground on bilateral, regional, and global issues. Terrorism and fair trade in multilateral platforms were also on their agenda. India-China relations seem to be taking a cooperative turn, with Xi stating that “China and India are partners, not rivals”.
Both sides agreed that “border issues should not define the overall China-India relationship”. Economic development emerged as their primary focus. They talked about reducing India’s bilateral trade deficit of nearly AED 364.26 billion, showing their focus on economic aspects of diplomatic ties.
First face-to-face since BRICS 2024 in Kazan
This Tianjin meeting built on diplomatic progress that started at the BRICS Summit in Kazan, Russia, in October 2024. Modi referenced this progress: “Last year in Kazan, we had very fruitful discussions which gave a positive direction to our relations”.
Their October 2024 meeting was groundbreaking – their first formal bilateral talks in five years. They reached an agreement on disengagement and patrolling along the Line of Actual Control (LAC), leading to better relations.
Modi and Xi’s interactions were limited before the Kazan summit. They exchanged brief words at the G20 summit in Bali in November 2022. Their informal meeting at the 2023 BRICS summit in Johannesburg led to agreements on disengagement and de-escalation.
Diplomatic ties have grown stronger recently. China’s top diplomat Wang Yi visited New Delhi in August 2025. Both countries plan to restart border talks and resume visa services. Direct flights between the two nations, stopped after the 2020 border incidents, will resume soon.
Twenty foreign leaders attended the SCO Summit in Tianjin. China holds this year’s rotating chair of the 10-member bloc. This multilateral setting provided context for the latest developments in India-China relations from Modi and Xi’s talks.
Modi Emphasizes Peace and Stability on Border
Image Source: CNN
“An atmosphere of peace and stability has been established after disengagement at the border.” — Narendra Modi, Prime Minister of India
Border peace along the disputed Himalayas was the life-blood of talks between Prime Minister Modi and President Xi. Both leaders acknowledged the most important progress in easing frontier tensions since they last met.
Disengagement process cited as progress
India and China’s border situation has improved remarkably according to Modi. He specifically pointed to the successful disengagement completed on October 21. Modi told Xi that “after the disengagement on the border, an atmosphere of peace and stability has been created”. This diplomatic breakthrough led to an agreement on patrolling arrangements along the Line of Actual Control (LAC) in eastern Ladakh. The agreement ended the military standoff that lasted over four years.
Foreign Secretary Vikram Misri confirmed that both leaders noted last year’s successful disengagement and managed to keep peace in border regions since then. Army sources reported that 80-90 percent of the disengagement at Depsang and Demchok in Eastern Ladakh was complete. The process involved removing temporary structures and withdrawing troops from both sides to their pre-April 2020 positions.
External Affairs Minister S. Jaishankar called this development a “positive” step. He said the agreements focus on both nations’ patrolling rights. The current India-China relations show substantial military de-escalation along their shared border.
Border peace seen as prerequisite for stronger ties
Modi expressed clearly that boundary stability forms the foundation for broader India-China diplomatic relations. “We are committed to progressing our relations based on mutual respect, trust and sensitivities,” Modi stated. He emphasized that cooperation between both nations affects 2.8 billion people’s interests.
Foreign Secretary Misri used a compelling metaphor: “maintenance of peace and tranquility at the border is like an insurance policy for India-China ties”. Yes, it is India’s position remained aligned with Modi “underlin[ing] the need for peace and tranquility in border areas for continued and smooth development of bilateral relations”.
Xi suggested that “we must not let the border issue define the overall China-India relationship”. The Indian delegation stood firm that border stability would affect overall relations. Misri restated when asked about this difference in approach: “we have been stating this from the beginning… that the situation on the boundary will have an impact on bilateral relations in certain ways”.
All the same, both leaders agreed that differences should not become disputes. Xi agreed with Modi about peace and stability in border areas since their Kazan meeting last year. Both leaders committed to maintaining this progress together. India-China relations now seem to move toward a practical approach. Border management serves as the foundation for broader cooperation.
Xi Jinping Calls India a Development Partner
Image Source: VPM News
Chinese President Xi Jinping shared his vision to strengthen ties with India. He focused on cooperation rather than competition during his landmark meeting with Prime Minister Narendra Modi. The meeting celebrated 75 years of diplomatic relations between the two countries. Xi wanted to look beyond border tensions and reshape the relationship between India and China.
Xi urges not to let border define relationship
Xi repeatedly stressed the need to take a broader view of bilateral ties. “We must not allow the border issue to define the entirety of Sino-Indian relations,” Xi stated firmly. Beijing and New Delhi have different approaches. China wants better bilateral ties regardless of border issues.
The Chinese president asked both nations to look at their relationship from a “strategic and long-term perspective”. He believed this approach would help resolve “specific issues in bilateral relations”. Xi used a colorful metaphor about the “cooperative pas de deux of the dragon and the elephant” as “the right choice for the two countries”.
Modi emphasized border stability while Xi wanted progress on multiple fronts at once. Foreign Secretary Vikram Misri noted this difference. India believes border situations affect bilateral relations, but both sides agree that dialog should resolve differences.
China sees India as chance, not threat
Xi consistently portrayed India as a development partner instead of a strategic competitor. “China and India represent development opportunities for each other, not threats,” Xi told Modi. He expanded on this by saying “as long as the two countries keep this overall direction in mind, stable and lasting development in relations will be achieved”.
Xi’s portrayal of India-China diplomatic relations as mutually beneficial shows a transformation in tone. “China and India are co-operation partners, not rivals,” state media Xinhua quoted Xi. Both leaders agreed that their countries are “development partners and not rivals, and their differences should not turn to disputes”.
The two countries now recognize their growing global influence. Xi pointed out that China and India are “two of the most civilizational countries” and “part of the Global South”. He noted that both nations “pursue strategic autonomy and independent foreign policies.” Modi added that their bilateral relations “should not be seen through a third country lens”.
Leaders Discuss Trade Deficit and Economic Ties
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“Agreement has been reached between the Special Representatives regarding border management.” — Narendra Modi, Prime Minister of India
Economic cooperation took up much of the discussions between the two leaders. They addressed longstanding trade concerns and explored ways to renew commercial ties.
India raises $99.2B trade deficit concern
The trade imbalance between the two nations hit record highs and became a key agenda item. India’s trade deficit with China reached AED 364.26 billion in the 2024/25 fiscal year. A surge in imports of electronics, electric batteries, and solar cells drove this increase. Chinese goods imports jumped over 25% year-on-year to AED 35.62 billion in March alone. India’s exports to China dropped 14.5% to AED 5.51 billion during the same period.
Analysts call this growing deficit “a wake-up call for India” that shows “deeper structural dependencies of the Indian economy”. India’s rising exports of electronics goods, pharmaceuticals, and engineering goods need imported components from China, which keeps fueling these imports.
China agrees to lift export curbs on key goods
China made a breakthrough decision to lift restrictions on fertilizers, rare earth magnets/minerals, and tunnel boring machines exports to India. This comes after External Affairs Minister S. Jaishankar asked Chinese counterpart Wang Yi about these issues.
Removing these curbs resolves critical Indian concerns. The sudden fertilizer restrictions had affected Di-Ammonium Phosphate availability during the Rabi season. China had also stopped shipping tunnel boring machines needed for key infrastructure projects. The auto and electronics industries had raised serious concerns about Chinese restrictions on rare earth magnets and minerals.
Direct flights and Kailash Yatra to resume
Both nations will restart direct flights that were suspended since the COVID-19 pandemic in 2020. This change will bring “a huge respite to traders who frequent China but via Thailand, Vietnam, Malaysia, Hong Kong or Singapore”, though no specific timeline was announced.
The leaders noted progress on restarting the Kailash Mansarovar Yatra, an important religious pilgrimage for Indian devotees suspended since 2019. Officials have been “speeding up efforts to reach an agreement”. Both sides discussed infrastructure and logistics to ensure smooth travel for pilgrims.
Modi and Xi Align on Global South and Multipolarity
Modi and Xi’s dialog went beyond borders and economics. Their discussions showed substantial agreement on global governance, which reflects their shared positions as major powers in the Global South.
Shared stance against US tariffs and unilateralism
The meeting’s timing proved crucial. It happened just five days after Washington imposed 50% tariffs on Indian goods over New Delhi’s Russian oil purchases. Chinese Ambassador to India Xu Feihong had already declared China’s opposition to Washington’s steep tariffs on India. He stated that China would “firmly stand with India”. Both leaders saw how their economies could stabilize global trade during economic uncertainty. Modi clearly stated that India and China follow their own path and “their relations should not be seen through a third country lens”.
Xi and Modi stress importance of multilateralism
Xi called for both nations to “uphold multilateralism, work together to bring about a multipolar world and more democracy in international relations”. Both leaders saw problems in the WTO and UN’s current functioning. They emphasized their need to strengthen cooperation on major international issues as key Global South members. Their focus remained on defending international fairness and justice. Modi and Xi agreed they should find common ground on bilateral, regional, and global challenges like terrorism and fair trade at multilateral platforms.
India invites Xi to BRICS 2026 summit
Modi made a significant diplomatic move by inviting Xi to attend India’s BRICS Summit in 2026. Xi thanked Modi and offered China’s support to India’s BRICS Presidency. This exchange shows continued engagement between these Asian powers through multilateral frameworks as they work to improve their bilateral relationship.
Prime Minister Modi’s meeting with President Xi Jinping marks a fundamental change in India-China relations after years of tension. Their discussions acknowledged progress through border disengagement and charted a practical path forward. Stable borders along the disputed Himalayan frontier now serve as the foundation for broader cooperation. The leaders also tackled the massive trade imbalance, as China agreed to remove export restrictions on vital commodities like fertilizers and rare earth minerals.
The meeting revealed how these Asian powers line up on global governance issues. Both leaders deepened their commitment to multilateralism and amplified the Global South’s voice. Their shared understanding about maintaining strategic independence shows a relationship built on pragmatism rather than outside pressures.
Business ties remain at the heart of this evolving partnership. Resuming direct flights will without doubt help companies and travelers from both countries. The planned restart of the Kailash Mansarovar Yatra strengthens cultural bonds. Notwithstanding that, problems are systemic, especially when you have the $99.2 billion trade deficit worrying Indian policymakers.
This diplomatic warming comes at a crucial moment, as Washington imposes new tariffs on Indian goods. Both nations recognize the value of a stronger relationship in today’s shifting global landscape. Modi’s invitation for Xi to join the 2026 BRICS Summit points to a long-term vision for continued cooperation.
This meeting transcends diplomatic formalities and signals a strategic reset between these Asian giants. Though border sensitivities persist, both leaders prioritize development partnerships over territorial disputes. This practical approach manages differences while pursuing common goals. The next few years will show if this diplomatic momentum creates lasting stability and mutual benefits for these nuclear-armed neighbors who represent nearly one-third of humanity.
