TIANJIN, China (August 31): Prime Minister Narendra Modi and Chinese President Xi Jinping reaffirmed on Sunday that India and China should be seen as “partners, not rivals,” during a bilateral meeting on the sidelines of the Shanghai Cooperation Organisation (SCO) summit. Both leaders stressed the importance of trade, peace, and stability as they seek to redefine ties in the face of global economic uncertainty.
This visit marks Modi’s first trip to China in seven years, where he joined Russian President Vladimir Putin, leaders from Pakistan, Iran, and Central Asian states, showcasing growing solidarity among Global South nations.
Trade and Tariff Challenges
The dialogue between Modi and Xi comes shortly after U.S. President Donald Trump imposed a steep 50% tariff on Indian exports, citing New Delhi’s purchase of Russian oil. The move strained U.S.-India relations and pushed New Delhi closer to Beijing. Modi acknowledged India’s $99.2 billion trade deficit with China but emphasized that improving economic relations was essential. Xi responded by describing both nations as “development opportunities” rather than threats.
Border Peace and Stability
The leaders also addressed the long-disputed Himalayan border, which saw violent clashes in 2020 that left 20 Indian and 4 Chinese soldiers dead. Both sides have since reinforced their military presence. However, Modi highlighted that an atmosphere of “peace and stability” is gradually returning, thanks to a patrolling agreement signed last year. Indian Foreign Secretary Vikram Misri confirmed that the border situation is “moving towards normalization.”
Xi echoed this sentiment, saying, “We must not let the border issue define the overall China-India relationship.”
Economic and Diplomatic Breakthroughs
The summit discussions included plans to resume direct flights between India and China, which have been suspended since 2020. China has also agreed to ease restrictions on exports of rare earths, fertilizers, and tunnel-boring equipment. Meanwhile, India will allow more Chinese pilgrims to visit Buddhist and Hindu sites, while both sides have lifted reciprocal visa restrictions.
China’s ambassador to India, Xu Feihong, recently vowed that Beijing would “firmly stand with India” against Washington’s tariff policies. Analysts view these developments as signals of cautious but steady progress in bilateral ties.
Regional and Global Cooperation
The Modi-Xi meeting also covered pressing global issues, including terrorism, fair trade practices, and challenges facing multilateral institutions. Experts say both countries are motivated by broader geopolitical currents and the need to balance Western influence.
Still, long-term irritants remain. China’s plan to build a massive dam in Tibet has raised concerns in New Delhi over water diversion from the Brahmaputra River, while Beijing continues to object to India’s hosting of the Dalai Lama. Despite these challenges, both nations see mutual benefit in stabilizing ties.
Outlook
With China as India’s largest trading partner and India seeking to hedge against U.S. tariff threats, analysts believe this renewed engagement could mark the beginning of a new chapter. While the road to complete trust remains complex, the SCO summit has created momentum for India and China to reframe their relationship around cooperation rather than confrontation.
