Amidst a period of geopolitical turbulence largely attributed to the policies of former U.S. President Donald Trump, India and China are actively seeking to improve their bilateral relations. Recent high-level diplomatic exchanges signal a mutual desire to move past previous strains and foster a more stable and cooperative partnership.

Prime Minister Narendra Modi met with Chinese Foreign Minister Wang Yi in New Delhi, expressing satisfaction with the "steady progress" made in improving the relationship between the two nations. Modi emphasized the importance of "respect for each other's interests and sensitivities". Wang Yi's visit to India precedes Modi's anticipated trip to China in October for a meeting with President Xi Jinping. This would be Modi's first visit to China since 2018.

China's Foreign Ministry conveyed that the two countries have entered a phase of "steady development" and should prioritize mutual trust and support. Both sides have agreed to resume direct flights, facilitate the issuance of journalist visas, and encourage business and cultural exchanges. These measures aim to revitalize people-to-people connections and foster greater understanding.

The relationship between India and China had deteriorated following a deadly clash in 2020 in the Ladakh region, resulting in casualties on both sides. This event led to a freeze in high-level political engagement and increased military deployments along the border. Since then, multiple rounds of talks have been held to de-escalate the situation, and some progress has been made, including an agreement on border patrols and the withdrawal of additional forces from certain areas.

Several factors contribute to the current warming of ties. One significant factor is the increasing friction between India and the United States due to Trump's imposition of steep tariffs on Indian goods and India's continued purchase of Russian oil. These tariffs, along with Trump's public criticism of India's relationship with Russia and its membership in BRICS, have reportedly led to resentment in New Delhi and a reassessment of its economic alliances.

In response to these challenges, India and China are exploring ways to enhance trade cooperation, particularly in strategic sectors like rare earth minerals. China has lifted export restrictions on fertilizers, rare earth minerals, magnets, and tunnel boring machines to India, signaling a commitment to strengthening trade ties. This move is viewed as a pragmatic step to ease supply chain pressures and create stability in a volatile global environment.

Both countries recognize the strategic importance of a stable and cooperative relationship for realizing their respective development goals. They have expressed mutual support for key diplomatic events, with China welcoming Modi's upcoming visit to Tianjin for the Shanghai Cooperation Organisation (SCO) Summit and India reaffirming its support for China's SCO Presidency. The two nations also pledged to strengthen cooperation through major multilateral platforms, including mutual support for hosting upcoming BRICS Summits.

Despite the positive momentum, challenges and complexities remain in the India-China relationship. The two countries continue to fortify their border infrastructure, and significant differences persist regarding the boundary issue. Experts emphasize that while mutual distrust lingers, both Asian powers see the mounting US tariff pressure as an opportunity to demonstrate their ability to push back and explore alternative options. The path towards a fully normalized and mutually beneficial relationship requires continued dialogue, trust-building measures, and a commitment to resolving outstanding issues in a fair and reasonable manner.