Tianjin – Prime Minister Narendra Modi has reiterated India’s resolve to improve relations with China during his meeting with President Xi Jinping on the sidelines of the Shanghai Cooperation Organisation (SCO) summit.
Modi stressed that New Delhi remains committed to fostering “stable and forward-looking” ties with Beijing, even as India navigates mounting trade tensions with the United States. Washington recently imposed 50% tariffs on Indian imports over its continued purchase of Russian oil — a move that has prompted New Delhi to seek stronger regional partnerships.
Highlighting India’s record $99.2 billion trade deficit with China, Modi called for a more “balanced and sustainable” trade relationship. Both leaders agreed to explore ways to strengthen economic cooperation, including boosting Chinese investment in India’s manufacturing and technology sectors.
Xi welcomed India’s stance, urging that both nations adopt a “political and strategic perspective” in addressing challenges and avoid letting disputes overshadow broader cooperation.
On the sensitive Himalayan frontier, Modi noted that peace and stability have largely returned since the violent clashes of 2020, which left soldiers on both sides dead. He revealed that India and China had reached a new understanding on border management, though details were not disclosed. Xi added that the boundary dispute should not be allowed to define the overall relationship.
To underline their intent to reset ties, both sides announced measures including the resumption of direct flights, relaxation of visa rules, and easing of Chinese export curbs on key materials such as rare earths, fertilizers, and tunnel-boring equipment.
Despite the positive tone, tensions remain. India continues to voice concerns over China’s deepening ties with Pakistan, the construction of a massive hydropower dam in Tibet with potential implications for India’s water security, and Beijing’s unease over India’s hosting of the Dalai Lama.
Both leaders, however, signaled a willingness to prevent disagreements from derailing progress. Modi underscored that India’s approach is guided by strategic autonomy, while Xi called for mutual respect and long-term cooperation.