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India – China Hail Improvement in Ties, Promises to Take Relations Forward

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Manas Dasgupta

NEW DELHI, Aug 31: Prime Minister Narendra Modi and Chinese President Xi Jinping held a crucial bilateral meeting on the sidelines of the Shanghai Cooperation Organisation (SCO) summit hosted by China in Tianjin on Sunday with the two leaders hailing the improvements in the ties between the two countries in the recent months and presented their respective perspectives in taking the relations forward.

While the Prime Minister stressed on the “strategic autonomy” of both India and China, the Chinese President called upon New Delhi to work together to promote a “multipolar world.” Mr Modi said India was committed to taking forward its ties with China based on mutual trust, respect and sensitivity and noted that there was peace and stability along the border following last year’s disengagement process.

In his opening remarks, Mr Jinping said it was “vital” for both countries to be good neighbours and proposed that both nations should “come together” in the transforming world. “The World is going towards transformation. China and India are two of the most civilizational countries. We are the world’s two most populous countries and part of the Global South… It is vital to be friends, a good neighbour, and the Dragon and the Elephant to come together…” he said.

Both PM Modi and President Jinping have welcomed steady progress in their bilateral ties since they last met in Russia for the BRICS summit. They noted that they are partners, and not rivals, and that their differences should not turn into disputes. India and China will resume direct flights in a big step towards reconciliation, PM Modi noted, but did not give a specific date. The direct flights were suspended during the COVID-19 pandemic, prompting travellers to pass through Hong Kong or Singapore.

PM Modi told Xi during the meeting that India-China ties should not be seen through the lens of a third country, the Ministry of External Affairs said in a press release. In turn, the Chinese President pinpointed the need for the two countries to come together and be friends.

While the two leaders at the table expressed satisfaction over the successful disengagement at the border last year and the subsequent peace and tranquillity along the border areas since then, they also expressed commitment to a fair, reasonable, and mutually acceptable resolution of the boundary question proceeding from the political perspective of their overall bilateral relations and the long-term interests, MEA said.

“Prime Minister noted that India and China both pursue strategic autonomy, and their relations should not be seen through a third country lens. The two leaders deemed it necessary to expand common ground on bilateral, regional, and global issues and challenges, like terrorism and fair trade in multilateral platforms,” the MEA statement said.

Taking to X, PM Modi said the two leaders agreed on the importance of maintaining peace in the border areas and they reaffirmed their commitment to cooperation “based on mutual respect, mutual interest and mutual sensitivity.”

Xi called upon PM Modi to work together to uphold multilateralism and work for the democratisation of relations among countries – in yet another message to the US, which is was targeting the BRICS nations for their de-dollarisation push. India, being a part of this grouping, however, has not joined the echo and maintained its stance against any de-dollarisation in trade.

“We must jointly demonstrate historical responsibility, uphold multilateralism, strengthen communication and cooperation on major international and regional issues, defend international fairness and justice, work together to promote a multipolar world and the democratization of international relations, and make due contributions to maintaining peace and prosperity in Asia and the world,” the Chinese statement said.

Mr Modi spoke about the resumption of the Kailash Mansarovar Yatra and tourist visas during their meeting. India and China had resumed the pilgrimage to Mount Kailash and Lake Mansarovar in Tibet earlier this year. Last month, India began issuing tourist visas to Chinese citizens. Both were suspended during the 2020 pandemic.

The Prime Minister also noted that the two countries should pursue strategic autonomy, and their relations should not be seen through a third country’s lens. “The two leaders deemed it necessary to expand common ground on bilateral, regional, and global issues and challenges, like terrorism and fair trade in multilateral platforms,” said a statement.

Mr Jinping stressed that India and China should not let the border issue define the overall relationship and work together to maintain peace and tranquillity. He emphasised that the two countries must handle their ties from a strategic and long-term perspective, and promote a sustained, healthy, and stable development of their bilateral relations.

The improvement in ties with China could be helpful for both countries, the largest in the world in terms of population. While the Indian EV sector would benefit by offering room for the Chinese companies to grow, the Chinese economy would also get a boost from greater access to Indian markets.

Both sides have also agreed to reopen border trade following foreign minister-level talks earlier this month, which would help in diversifying trade at a time of severe tariff uncertainties. China has also assured India that it will address its need for rare earth minerals, fertilisers, and tunnel boring machines.

The diplomatic upswing comes at a time when India’s relations with the US have soured due to Trump’s tariffs. New Delhi getting closer to Beijing raises an alarm for the US foreign policy, undoing decades of American efforts to pull apart the two massive economies.

Twenty foreign leaders are attending the SCO Plus summit being organised by China, which is this year’s rotating chair of the 10-member bloc comprising Russia, India, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Uzbekistan, Belarus and China.

Mr Jinping said, “This year marks the 75th anniversary of China-India diplomatic relations. Both nations need to handle our relationship from a strategic and long-term perspective. 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.”

The MEA statement said the two leaders reaffirmed that India, China were development partners. The MEA said the two countries were not rivals and differences should not turn into disputes. Mr Modi and Mr Xi noted the need to strengthen people-to-people ties through direct flights and visa facilitation. Mr Modi and Mr Xi recognised the role of their two economies to stabilise world trade. They also underlined a need to proceed from a political and strategic direction to expand trade ties, and reduce trade deficit, the MEA added.

The MEA also said PM Modi invited President Xi to BRICS summit that India would host in 2026. In talks with Mr Xi, PM Modi said cooperation between the two countries was linked to the welfare of 2.8 billion people. “Our cooperation is linked to the interests of 2.8 billion people of our two countries. This will also pave the way for the welfare of all humanity,” Mr Modi said. “We are committed to advancing our relations based on mutual trust, respect, and sensitivity,” he said.