Prime Minister Narendra Modi and Chinese President Xi Jinping are meeting today in Tianjin, China, on the sidelines of the Shanghai Cooperation Organisation (SCO) summit. This marks Modi's first visit to China in seven years. The meeting is significant as both nations aim to mend relations strained by border tensions and evolving global economics.

The meeting between Modi and Xi is their second in the last 10 months, with their last encounter occurring at the BRICS summit in Kazan, Russia. This points to a concerted effort to stabilize and strengthen the bilateral relationship. A 40-minute time slot has been allocated for the talks, signaling the importance both sides place on this interaction.

Several factors contribute to the significance of this meeting. Relations between India and China have seen a degree of improvement after a military standoff along the Line of Actual Control (LAC) in eastern Ladakh. Talks between the two countries have led to the resumption of the Kailash Mansarovar Yatra, the issuance of Indian visas for Chinese tourists, and the revival of direct flights.

However, the backdrop of strained India-US relations due to tariffs imposed by President Trump adds another layer of complexity. Trump's decision to increase tariffs on India, including penalties for purchasing Russian oil, has created friction and prompted India to seek closer ties with both Beijing and Moscow. Some analysts suggest that these tariffs are pushing India closer to China, potentially impacting the US-led Quad security forum.

The agenda for the Modi-Xi meeting is expected to be broad. Discussions will likely include trade, the rare earths industry, and counter-terrorism efforts. Both leaders are also expected to discuss the border situation and ways to maintain peace and tranquility in the border regions. They may also approve a calendar of events to commemorate the 75th anniversary of bilateral relations.

Trade and economic relations will be high on the agenda. China remains one of India's largest trade partners, although India faces a significant trade deficit. This deficit, a long-standing concern for New Delhi, has widened to $99.2 billion in fiscal year 2024-25. India is keen to address this imbalance and seek greater market access for its goods in China. Connectivity and people-to-people ties are also likely to be discussed, including the resumption of direct flights that were suspended due to the COVID-19 pandemic and border tensions.

The meeting occurs against the backdrop of the SCO summit, which brings together leaders from across Asia, Europe, and the Middle East. The SCO has become an essential part of China's international governance architecture, providing a platform for dialogue and cooperation outside the US-led international system. On the sidelines of the SCO summit, PM Modi is also expected to meet with Russian President Vladimir Putin to discuss the impact of Trump's tariffs, the Russia-Ukraine conflict, and the situation in Gaza.

While analysts believe that historical mistrust will remain between India and China, they suggest that both countries recognize the changing world order and are trying to manage their relationship to create stability and predictability.