TIANJIN, China, Aug 31 – Indian Prime Minister Narendra Modi met with Chinese President Xi Jinping in Tianjin on Sunday, where both leaders underlined their willingness to strengthen ties and move past tensions. Modi emphasized that New Delhi is committed to building a more stable and constructive relationship with Beijing, highlighting the need for trust, mutual respect, and cooperation.
The timing of the meeting is significant, given the current global political climate. Just days earlier, the United States imposed heavy tariffs of up to 50% on Indian exports, a decision that has raised concerns in New Delhi about its economic outlook. Against this backdrop, Modi’s first visit to China in seven years—part of a broader Shanghai Cooperation Organization summit attended by Russian President Vladimir Putin and other regional leaders—carried added significance. Xi and Modi aimed to demonstrate a spirit of unity and determination in response to outside pressures.
Trade, Investment, and Strategic Cooperation
Economic issues dominated much of the discussion. Modi called on China to help narrow India’s trade gap, which has surged to a record $99.2 billion this year. He stressed that while China is India’s largest trading partner, the imbalance has been a persistent concern for Indian policymakers. Both sides agreed to push forward with policies aimed at improving market access, encouraging investment, and diversifying trade flows.
Xi responded by noting that China and India should focus on partnership rather than rivalry. According to him, treating each other as strategic collaborators could pave the way for “stable and far-reaching” ties. Modi echoed that sentiment, adding that both countries should maintain strategic autonomy and not allow third parties to dictate the future of their relationship.
Recent moves suggest some positive momentum. China has lifted restrictions on exports of fertilizers, rare earths, and heavy machinery to India, while both nations are preparing to restart direct flights that were suspended in 2020. Modi also pointed out that cultural and people-to-people exchanges are resuming, a sign of gradually warming relations.
Beyond trade, the two leaders also touched on global and regional issues. They discussed the need for fair trade practices at international platforms, as well as cooperation in tackling terrorism and other shared challenges. Observers say these exchanges reflect a growing awareness that collaboration between the two Asian powers will be vital in shaping future global dynamics.
Border Stability and Long-Term Challenges
The sensitive Himalayan border, a long-standing flashpoint between the two countries, was another focal point of the talks. The 3,800-kilometer boundary has been disputed since the 1950s, and deadly clashes in 2020 severely damaged relations, freezing many forms of cooperation.
Modi told Xi that recent agreements on border management and troop deployments have helped restore an atmosphere of “peace and stability.” He cautioned, however, that the process must continue, as sustained calm along the frontier is essential for broader progress in bilateral ties. Xi, in turn, was quoted as saying that the border issue should not be allowed to define the overall relationship, urging both sides to keep the larger picture in mind.
Since last year, confidence-building steps have been gradually introduced. India and China reached a border patrol agreement in Russia, leading to a slight thaw. Religious exchanges have also resumed, with Beijing permitting Indian pilgrims to visit Buddhist and Hindu sites in Tibet. Tourist visa restrictions, in place since the pandemic and the border clashes, have been lifted on both sides. These measures, while modest, signal that both governments are cautiously working toward rebuilding trust.
Still, difficult challenges lie ahead. India has voiced unease over China’s plan to construct a massive hydroelectric dam in Tibet, which New Delhi fears could drastically reduce water flows on the Brahmaputra River during dry months. Political sensitivities also persist over India’s hosting of the Dalai Lama, the exiled Tibetan spiritual leader whom Beijing considers a separatist figure. In addition, Pakistan’s close ties with China remain a sticking point for Indian officials, given the longstanding hostility between New Delhi and Islamabad.
Despite these hurdles, the message from Tianjin was one of cautious optimism. According to Modi, the relationship can only advance if it rests on trust and mutual understanding of key issues. Xi reinforced the idea that cooperation, not confrontation, should guide their future.
The Modi-Xi dialogue highlights how both nations are recalibrating their approach amid shifting geopolitical dynamics. With Washington’s tariffs placing new strain on India’s economy, New Delhi is signaling greater openness to cooperation with Beijing, while China sees value in stabilizing ties with its southern neighbor to bolster regional influence.