Prime Minister Narendra Modi and Chinese President Xi Jinping met in Tianjin, China, on Sunday, August 31, 2025, on the sidelines of the Shanghai Cooperation Organisation (SCO) summit. This marks Modi's first visit to China in seven years. Both leaders emphasized the importance of a stable and predictable relationship between the two countries for regional and global stability.

Key Discussion Points and Agreements

During their bilateral talks, PM Modi stressed the commitment to advancing India-China relations based on "mutual trust, respect, and sensitivity". He acknowledged the progress made in various aspects of the relationship, including the establishment of peace along the border after disengagements.

Several key agreements and discussion points emerged from the meeting:

• Border Management: An agreement has been reached between special representatives regarding border management. Both nations agreed to form two groups for border delimitation and management.
• Resumption of Kailash Mansarovar Yatra: The Kailash Mansarovar Yatra has been resumed.
• Direct Flight Connectivity: Direct flights between India and China are being resumed.
• Economic Cooperation: Discussions focused on enhancing economic cooperation and addressing trade imbalances. India is expected to push for fair trade arrangements and access to critical imports, including rare earths, fertilizers, and industrial equipment.
• Border Trade: India and China have agreed to reopen cross-border trade through Lipulekh (Uttarakhand), Shipki La (Himachal Pradesh), and Nathu La (Sikkim).
• Visa Processes: Both sides are set to back plans for streamlining visa processes.

Key Quotes

• Xi Jinping: "It is vital to be friends, a good neighbour, and the Dragon and the Elephant to come together". He also stated, "We are the world's two most populous countries and part of the Global South".
• Narendra Modi: "We are committed to taking our relations forward on the basis of mutual trust, respect, and sensitivity". He also highlighted that the interests of 2.8 billion people in both countries are linked to their cooperation, which will pave the way for the welfare of the entire humanity.

Context and Significance

The meeting occurred against the backdrop of a shifting geopolitical landscape. The US imposed a 50% tariff on Indian exports, leading India to seek closer ties with China. Some experts believe that this meeting could mark a major turning point for the two Asian giants, with implications for U.S.-India relations.

PM Modi emphasized the importance of India and China working together to bring stability to the volatile global economy. In an interview ahead of his trip, Modi stated that stable and amicable relations between India and China can positively impact regional and global peace and are crucial for a multi-polar Asia and world.

Challenges and Future Outlook

Despite the positive momentum, challenges remain in the India-China relationship. A long-standing and unresolved territorial dispute plays a significant role in the relationship. Approximately 50,000–60,000 troops remain stationed along the Line of Actual Control (LAC) in eastern Ladakh, underscoring persistent military tensions.

Analysts caution against interpreting recent moves as full reconciliation, emphasizing that the relationship remains fragile. However, both countries recognize the need to manage frictions and foster a more stable and predictable relationship.