In key Asian strategic development, China, India rebuild ties amid US tariffs

Asian strategic development
Asian strategic development

In a significant diplomatic engagement, Indian Prime Minister Narendra Modi met with Chinese President Xi Jinping on Sunday, affirming New Delhi’s commitment to improving bilateral relations with Beijing even as U.S.-India relations sour over trade tariffs. Asian strategic development

Washington and policymakers in Western capitals are keeping an eye on what is being described as an important strategic turn in relations between China and India, the two largest populations and economic powerhouses. Asian strategic development

Notably, Modi and Xi agreed to set aside bilateral disputes from their protracted border standoff and focus on mutually useful cooperation. Asian strategic development

Modi’s visit to China, the first in seven years for a two-day summit of the Shanghai Cooperation Organization (SCO), comes just five days after the United States enforced President Donald Trump’s 50% tariffs on Indian exports in response to New Delhi’s ongoing oil imports from Russia. Asian strategic development

 

Trump spikes tariff on Indian goods to 50%

 

Some Indian analysts suggest that Modi and Xi are keen to demonstrate a united front in the face of growing Western pressure. Asian strategic development

New Delhi has stiffened its stance on U.S. tariffs, saying it would not bow to any pressure but pursue options in its national interest. Asian strategic development

Modi noted that “peace and stability” have returned to the Himalayan border region, the site of deadly clashes between Indian and Chinese troops in 2020.

He mentioned that a border management agreement has been reached, though specific details were not disclosed. Asian strategic development

During their meeting on the sidelines of the summit, Modi stated, “We are committed to advancing our relationship on the basis of mutual respect, trust, and sensitivity,” according to a video shared on his official X account.

 

 

Xi also reciprocated the approach to the future of bilateral relations.

“We must not let the border issue define the overall China-India relationship,” Xi was quoted as saying by China’s state-run Xinhua news agency.

The Chinese leader emphasized that bilateral ties could become “stable and far-reaching” if both sides treated each other as partners, not rivals.

Modi and Xi last met in Russia in 2024, where they reached a preliminary agreement on joint border patrols, laying the groundwork for a gradual thaw in relations.

Momentum for reconciliation has increased recently, as India looks to tackle devastating implications of U.S. tariffs on its products.

 

 

Modi also announced that direct flights between India and China—suspended since 2020—will soon resume, although no specific timeline was provided.

Earlier this month, China agreed to lift export restrictions on rare earth minerals, fertilizers, and tunnel-boring equipment during a high-level visit to India by Chinese Foreign Minister Wang Yi.

China has criticized the U.S. tariffs on Indian goods and expressed support for New Delhi. “China will firmly stand with India,” Chinese Ambassador to India Xu Feihong stated earlier this month.

The United States for decades sought to build strategic ties with India, viewing it as a counterweight to China’s growing regional influence.

Nevertheless, China and India must tread a delicate line as they seek to rebuild trust and put behind divergences on key strategic issues.

 

Trump issues stern warning against India’s purchase of Russian oil

 

New Delhi has voiced concern over Beijing’s plan to construct a water dam in Tibet since India believes that completion of the project would curtail water flows in the Brahmaputra River drastically. Asian strategic development

India also bristles at the trade deficit with China which is nearing $ 100 billion.

Conversely, Beijing’s objection to India hosting the exiled spiritual leader Dalai Lama is a major friction in Chinese perspective. Asian strategic development

Then there is the question of China-Pakistan relations. China’s close ties with Pakistan were on full display during the May conflict between the two South Asian nuclear powers and India suffered an embarrassing loss of several high-tech fighter jets including French Rafale. Asian strategic development

Islamabad used Chinese airpower technology to turn the tables on India, which many Indian experts saw as China combating India through Pakistan.

Pakistan’s Prime Minister Shehbaz Sharif is also attending the SCO summit as relations with India remain hostage to key security issues as well as raging monsoon floods that flow from India into Pakistan.

The summit brings together leaders from across Central, South, and Southeast Asia, the Middle East, and includes Russian President Vladimir Putin—underscoring what analysts see as a show of solidarity among Global South nations.

Meanwhile, Russian President Vladimir Putin, facing renewed criticism over aggressive attacks on Ukraine, will visit India in December, according to Kremlin officials.

The trip is important in international perspective, as U.S. President Donald Trump has criticized New Delhi over its oil trade with Moscow.

The SCO consists of ten full members: China, India, Russia, Pakistan, Iran, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, and Belarus. An additional 16 countries participate as observers or dialogue partners.

The expanded-format summit is also being attended by representatives from Mongolia, Armenia, Azerbaijan, Cambodia, Nepal, Türkiye, Egypt, the Maldives, Myanmar, and others, along with the UN Secretary-General and heads of various international and regional organizations.

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Muhammad Luqman is Associate Editor at Views News Now. He writes on wide-ranging issues including economy, South Asia, the Middle East, agriculture, economy and innovation. Luqman has worked some of the leading news organizations and won acclaim for his original and research-based works.

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