Recent diplomatic exchanges signal a potential thaw in China-India relations, with both nations expressing a desire to move forward after a period of strain. Several factors are driving this renewed effort, including the need to manage their border dispute, increase trade and cooperation, and navigate the uncertainties arising from U.S. trade policies.
High-level engagement has been central to this process. Chinese Foreign Minister Wang Yi's recent visit to New Delhi, his first in three years, involved meetings with Indian External Affairs Minister S. Jaishankar and National Security Advisor Ajit Doval. These discussions covered a range of key issues, including border peace, trade, and bilateral exchanges, with the aim of strengthening cooperation. A key message from the Indian side has been that maintaining peace and tranquility along the border is essential for positive momentum in the overall relationship. Jaishankar emphasized that differences should not turn into disputes or conflict and called for a candid and constructive approach from both sides. He also reiterated the importance of de-escalation and the withdrawal of troops from the border region.
China has also emphasized the need for a "correct strategic understanding" of bilateral ties, viewing each other as partners rather than adversaries. Chinese Foreign Ministry spokesperson Mao Ning stated China's willingness to work with India to implement the consensus reached by the leaders of both countries, enhance political trust, strengthen practical cooperation, and properly manage differences. Wang Yi highlighted that both countries have maintained peace and tranquility in the border areas and expressed confidence in dispelling interference and expanding cooperation.
The border dispute remains a significant challenge. The military stand-off in eastern Ladakh, which began in April-May 2020, has been a major source of tension. While some progress has been made in disengaging frontline troops, the complete withdrawal of additional troops from the Line of Actual Control (LAC) is still a priority for India. The 24th round of talks between the special representatives of China and India on the boundary question, co-chaired by Wang Yi and Ajit Doval, focused on resolving practical issues and upholding long-term peace and stability in the border areas.
Beyond the border issue, both countries recognize the potential for increased economic cooperation. India's trade with China has grown significantly in recent years, but there is a desire to shift the trade balance in India's favor. Some Indian businesses are calling for easing restrictions on Chinese investments in the country. Resuming trade through land routes and restarting flight services are also being considered as confidence-building measures. Both nations face increasing pressure from U.S. trade policies, which is adding urgency to the need to normalize ties. Tariffs imposed by the U.S. on exports from both countries, as well as threats to penalize India for buying Russian oil, are creating incentives for closer cooperation.
Despite the positive signals, challenges remain. India is wary of China's close relationship with Pakistan and its activities in the South China Sea. China has expressed concerns about Indian military activities and the hosting of anti-China activities by Tibetan exiles. As India strengthens its security ties with the United States and takes a leading role in the Global South, tensions with China could persist. However, both countries share a common interest in promoting a multipolar world order and reforming the global order. As two major members of the Global South, China and India are shouldering the responsibility to work together to realize a fair and just world order and universally beneficial and inclusive economic globalization.
