China has stated that improving relations with India aligns with the interests of both nations, emphasizing the steps taken to steadily stabilize relations following a meeting between President Xi Jinping and Prime Minister Narendra Modi last year. According to China's Foreign Ministry, the improvement in Sino-Indian relations reflects a mutual interest and the result of joint efforts. The ministry has also refuted claims of "secret diplomacy" between the two countries, stating that only normal communication and interaction has occurred.

This comes amid reports that President Xi Jinping sent a letter to Indian President Droupadi Murmu in March, expressing concerns about potential US deals that could harm China's interests. The letter was seen as an attempt to test India's willingness to recalibrate ties with China. It has been suggested that India began to seriously consider improving relations with China around June, particularly as trade talks with the US became contentious.

Several recent developments point towards a thaw in relations between the two countries. These include:

• Border Talks: Both sides have agreed to redouble efforts to settle their border disputes. This marks the most direct progress since the 2020 Galwan Valley clash.
• Trade: Discussions have been held regarding fertilizer trade, and China has reportedly assured India of continued access to fertilizers and rare earths.
• Visas: India has reopened tourist visas for Chinese nationals after years of restrictions.
• Resumption of Flights: Direct passenger flights between India and China are set to resume.

Narendra Modi is scheduled to visit China for the first time in seven years. He will attend the Shanghai Cooperation Organisation (SCO) summit in Tianjin. Modi is expected to meet with Xi Jinping on the sidelines of the summit. Trade and investment are expected to be high on the agenda.

Despite these positive developments, challenges and points of contention remain. These include:

• Border Disputes: Long-standing border disputes remain unresolved.
• China's relationship with Pakistan: India remains wary of China's strong strategic bilateral relations with Pakistan.
• Mistrust: Deep suspicion persists between the two sides.

Some analysts suggest that the improvement in India-China relations has been influenced by the global trade war and increasing trade tensions with the U.S. The U.S imposition of tariffs on Indian exports has created an opening for China to strengthen ties with India. Some experts say that India never fully sided with the United States against China.

Both China and India recognize that allocating limited resources to economic development and strategic priorities is a more rational choice than endless border disputes. The two countries share a mission to push the international order toward greater democracy and fairness. As major developing countries and important members of the Global South, China and India share a vision of becoming partners for mutual success.