India’s Prime Minister Narendra Modi shakes fingers with Chinese language President Xi Jinping throughout a gathering on the sidelines of Shanghai Cooperation Organisation Summit in Tianjin, China, on Aug. 31, 2025.
Press Info Bureau | By way of Reuters
Indian Prime Minister Narendra Modi mentioned New Delhi was dedicated to enhancing ties with China in a key assembly with President Xi Jinping on Sunday, as each leaders mentioned the necessity to broaden commerce and funding ties towards the backdrop of U.S. tariffs.
Modi is in China for the primary time in seven years to attend a two-day assembly of the Shanghai Cooperation Organisation, together with Russian President Vladimir Putin and different leaders from Central, South and Southeast Asia and the Center East, in a present of World South solidarity.
The assembly comes days after Washington imposed 50% tariffs on Indian items in response to New Delhi’s buy of Russian oil, a transfer analysts say has pushed Modi and Xi to align towards Western pressures.
Modi mentioned India and China pursued strategic autonomy, and their ties shouldn’t be seen by the lens of a 3rd nation, in response to an Indian overseas ministry readout of the assembly.
Modi emphasised decreasing India’s commerce deficit with China and increasing cooperation on regional and international points, together with terrorism and honest commerce practices, the ministry added.
The leaders additionally mentioned increasing widespread floor on bilateral, regional, and international points, and challenges like terrorism and honest commerce in multilateral platforms, the Indian assertion mentioned.
“We’re dedicated to progressing our relationships based mostly on mutual respect, belief and sensitivities,” Modi advised Xi in the course of the assembly on the sidelines of the summit, in response to a video posted on his official X account.
At a reception for the summit Xi advised leaders that the SCO now bears “better tasks” for safeguarding regional peace and stability, and for enhancing improvement of varied international locations, Chinese language state information company Xinhua reported on Sunday.
Border problem
Modi mentioned an environment of “peace and stability” has been created on their disputed Himalayan border, the location of a chronic army standoff after lethal troop clashes in 2020, which froze most areas of cooperation between the nuclear-armed strategic rivals.
He added that an settlement had been reached between each nations concerning border administration, with out giving particulars. The neighbours share a 3,800 km (2,400 miles) border that’s poorly demarcated and has been disputed for the reason that Nineteen Fifties.
“We should … not let the border problem outline the general China-India relationship,” Xinhua reported Xi as saying.
China-India ties may very well be “secure and far-reaching” if each side targeted on viewing one another as companions as an alternative of rivals, Xi added.
Each leaders had a breakthrough assembly in Russia final yr after reaching a border patrol settlement, setting off a tentative thaw in ties that has accelerated in latest weeks as New Delhi seeks to hedge towards renewed tariff threats from Washington.
Direct flights between each nations, which have been suspended since 2020, are being resumed, Modi added, with out offering a timeframe.
Chinese language President Xi Jinping and his spouse, Peng Liyuan, pose for a household picture with worldwide visitors at a welcome banquet for the Shanghai Cooperation Group Summit, in Tianjin, China, on Aug. 31, 2025.
China Day by day | By way of Reuters
China had agreed to raise export curbs on uncommon earths, fertilizers and tunnel boring machines this month throughout a key go to to India by China’s Overseas Minister Wang Yi.
China opposes Washington’s steep tariffs on India and can “firmly stand with India,” Chinese language Ambassador to India Xu Feihong mentioned this month.
For many years, Washington painstakingly cultivated ties with New Delhi within the hope that it might act as a regional counterweight to Beijing.
In latest months, China has allowed Indian pilgrims to go to Hindu and Buddhist websites in Tibet, and each international locations have lifted reciprocal vacationer visa restrictions.
“Each India and China are engaged in what’s prone to be a prolonged and fraught means of defining a brand new equilibrium within the relationship,” mentioned Manoj Kewalramani, a Sino-Indian relations skilled on the Takshashila Establishment suppose tank in Bengaluru.
Nonetheless, different long-term irritants stay within the relationship.
China is India’s largest bilateral commerce accomplice, however the long-running commerce deficit – a persistent supply of frustration for Indian officers – reached a file $99.2 billion this yr.
In the meantime, a deliberate Chinese language mega-dam in Tibet has sparked fears of mass water diversion that might cut back water flows on the most important Brahmaputra River by as much as 85% within the dry season, in response to Indian authorities estimates.
India additionally hosts the Dalai Lama, the exiled Tibetan Buddhist non secular chief whom Beijing views as a harmful separatist affect. India’s arch-rival Pakistan additionally advantages from staunch Chinese language financial, diplomatic and army help.