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August 31, 2025

Modi-Xi Summit Signals New Chapter in India-China Ties Amid Tensions with U.S.

The CSR Journal Magazine

In a significant diplomatic engagement, Indian Prime Minister Narendra Modi met with Chinese President Xi Jinping on the sidelines of the Shanghai Cooperation Organisation (SCO) summit, marking Modi’s first visit to China in seven years. The meeting comes as both Asian giants seek to recalibrate ties amid growing pressure from the United States, especially over trade and energy policies.

During their talks in the Chinese port city of Tianjin, both leaders emphasised the need to steer the bilateral relationship with a long-term vision rooted in mutual understanding.

“We are committed to taking our relations forward on the basis of mutual trust, respect and sensitivity,” Prime Minister Modi said during the discussions, which lasted about an hour. He acknowledged recent breakthroughs, particularly the disengagement at the contested border areas and the resulting improvement in regional stability.

Modi also highlighted practical steps toward greater people-to-people contact and cooperation, including the resumption of direct air travel between India and China, as well as the long-awaited return of the Kailash Mansarovar Yatra.

“The cooperation between us is linked to the interests of 2.8 billion people of our two nations. This will also pave the way for the welfare of all humanity,” Modi added, noting that peaceful relations between the two populous neighbours hold global significance.

Xi Welcomes Modi, Calls for Stronger India-China Ties

President Xi, in turn, welcomed Modi to China and expressed optimism about the future of the bilateral partnership. He stressed the importance of China and India working together, not just for their own benefit, but for the broader Global South.

“It is the right choice for both countries to be friends who have good neighbourly and amicable ties, partners who enable each other’s success, and to have the dragon and the elephant come together,” said Xi.

With both nations navigating challenges posed by U.S. tariff measures, the timing of this meeting was especially significant. In recent weeks, Washington has imposed a 50 percent tariff on Indian goods, a move reportedly linked to New Delhi’s continued imports of Russian oil. In parallel, China has faced threats from U.S. President Donald Trump to levy up to 200 percent tariffs on its exports of rare-earth magnets.

Notably, China condemned the U.S. action against India, calling the tariffs unjust and asserting solidarity with New Delhi. This convergence of economic pressure has pushed the two Asian powers toward a renewed dialogue, despite lingering historical mistrust.

Xi also underscored the broader responsibilities that India and China share in shaping global governance. “We must also step up to our historic responsibilities to uphold multilateralism, a multipolar world, and more democracy in international institutions and work together for peace and prosperity in Asia and around the world,” he said.

Modi-Xi Reconnect After 2020 Galwan Clashes

The two leaders last met in October 2024 during the BRICS summit in Kazan, Russia, ending a long hiatus in direct engagement following the 2020 Galwan Valley clashes. That deadly confrontation had brought India-China relations to a low point. The subsequent disengagement agreements—finalised in late 2024 at Demchok and Depsang—opened the door to re-engagement.

Modi acknowledged this turning point, telling Xi, “An atmosphere of peace and stability has been established after disengagement at the border. Our Special Representatives have reached an understanding on border management.”

Chinese state media also highlighted Xi’s reassurance that the two countries should view each other as partners in development rather than rivals. “China and India are each other’s development opportunities rather than threats,” he said, according to reports.

Xi also expressed hope that the border issue would not overshadow the broader India-China relationship. “China-India relations can be promising, stable and far-reaching,” he said, urging a balanced approach.

In addition to meeting Xi, Modi is also scheduled to hold talks with Russian President Vladimir Putin in Tianjin. This trilateral engagement is being closely watched, particularly as the U.S. has criticised India’s oil trade with Moscow amid ongoing geopolitical shifts.

SCO Summit Draws Record 20 Leaders

The SCO summit this year brings together 20 foreign leaders, making it the largest such gathering since the organisation’s founding in 2001. Member states include not just China, India, and Russia, but also Iran, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Uzbekistan, and Belarus.

In the weeks leading up to the summit, Chinese Foreign Minister Wang Yi had visited India, holding discussions with National Security Advisor Ajit Doval and External Affairs Minister S. Jaishankar to lay the groundwork for today’s high-level exchange.

As the global order continues to shift, today’s Modi-Xi meeting may prove pivotal in redefining the trajectory of one of Asia’s most complex bilateral relationships.

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