On Sunday, during bilateral talks between Prime Minister Narendra Modi and Chinese President Xi Jinping at the Shanghai Cooperation Organisation (SCO) summit in Tianjin, discussions surrounding trade and economic stability took center stage, particularly in light of global instability caused by tariffs imposed by the United States.

According to the Ministry of External Affairs (MEA), both leaders acknowledged the significant roles India and China play in stabilizing global trade. They recognized that cooperation between the two nations is vital for the welfare of their combined 2.8 billion people and humanity in general. Modi and Xi also emphasized that India and China are development partners, not rivals, and agreed that their differences should not escalate into disputes.

The discussions also covered the need to develop a strategic direction to expand trade and investment ties while reducing the trade deficit between the two countries. Modi stressed the importance of peace and tranquility in the border areas for the continued development of India-China relations, reiterating India's commitment to advancing relations based on mutual trust, respect, and sensitivity.

While the MEA readout didn't explicitly mention whether Trump's tariffs were directly discussed, the context of the meeting, set against the backdrop of global trade turbulence caused by these tariffs, suggests that the issue was likely a significant factor in the discussions. Both leaders vowed to expand bilateral trade and investment ties and find common ground on regional and global issues like terrorism and fair trade.

Furthermore, the ministry stated that Modi highlighted how India and China both pursue strategic autonomy, suggesting that their relationship should not be viewed through the lens of a third country.

In addition to trade-related discussions, the two leaders also addressed the India-China border issue, agreeing to work towards a fair, reasonable, and mutually acceptable solution. They acknowledged the successful disengagement from the previous year and the maintenance of peace and tranquility in the border regions. Modi also invited Xi to the BRICS Summit in 2026, which India will be hosting. Xi accepted the invitation and offered China's support for India's BRICS Presidency.

Overall, the Modi-Xi talks signal a desire from both countries to strengthen ties, promote economic cooperation, and navigate the complexities of the current global landscape. The MEA's response indicates a focus on addressing trade imbalances and fostering a stable and mutually beneficial relationship between the two nations.