NEW DELHI – In a cautious but significant thaw, India and China, long-time rivals, are quietly strengthening their bilateral ties amid changing global trade dynamics and political shifts driven by the unpredictable approach of US President Donald Trump.
The next week marks an important diplomatic step with Chinese Foreign Minister Wang Yi scheduled to visit New Delhi for talks with India’s National Security Adviser Ajit Doval. This will be their second high-level meeting since the deadly 2020 border clash in the Himalayas, signaling a constructive push to resolve longstanding border issues.
Adding to this momentum, Indian Prime Minister Narendra Modi is set to make his first visit to China in seven years at the end of August. He will attend the Shanghai Cooperation Organisation (SCO) summit in Tianjin, where he is likely to meet Chinese President Xi Jinping. This engagement underscores the cautious rapprochement between the two Asian giants amid a broader geopolitical realignment.
This series of diplomatic engagements follows a breakthrough last October when India and China reached an agreement to patrol the Himalayan border, ending a five-year stand-off that had strained trade, investment, and air connectivity between the two countries.
Relations have been further buoyed by recent developments as India and China move to resume direct flights suspended since 2020 and discuss easing trade barriers, including reopening border trade at three key Himalayan crossings. While border trade is a small fraction of the bilateral trade volume of US$127.7 billion recorded in fiscal year 2024, reviving it holds symbolic value in normalizing economic ties.
India’s Ministry of External Affairs has confirmed ongoing efforts with China to resume border trade through the Lipulekh Pass in Uttarakhand, Shipki La Pass in Himachal Pradesh, and Nathu La Pass in Sikkim. China also affirmed its readiness to restart border trade, emphasizing the importance of such exchanges in improving the livelihood of border communities.
The resumption of direct flights, expected as soon as September, is viewed as a crucial step in restoring people-to-people connectivity that had been disrupted by the Covid-19 pandemic and exacerbated by the 2020 military clash.
These bilateral efforts gain added significance amid strained India–US trade relations, with the Trump administration imposing tariffs of up to 50% on Indian exports, placing one of India’s major global partnerships under pressure while US and China have just extended a tariff truce.
On the economic front, India’s government think-tank has recommended easing investment regulations that imposed additional scrutiny on Chinese companies, signaling a possible shift toward more pragmatic economic engagement.
As global politics recalibrate, India and China’s tentative but steady efforts to mend ties reflect a shared interest in maintaining regional stability and fostering economic cooperation while managing their complex rivalry diplomatically.