(TibetanReview.net, Sep01’25) – The Tibet-border issue continues to be a major sticking point as India and China pledged to be partners, not rivals, during Prime Minister Narendra Modi and President Xi Jinping’s much-anticipated meeting on the sidelines of the annual Shanghai Cooperation Organization (SCO) summit being held this year in the port city of Tianjin over Aug 31-Sep 1, reported bbc.com Aug 31.
The two sides pledged on Aug 31 to resolve their border differences and bolster cooperation ahead of the opening of the regional political, economic and security group founded by China, reported the AP Sep 1,
The two sides should “not let the border issue define the overall China-India relationship,” the report quoted Xi as saying, adding that economic development should be their main focus. He has made four suggestions from a strategic and long-term perspective to build a steady and healthy relationship between the two countries. These included deepening strategic communication and mutual trust, expanding exchanges and cooperation for mutual benefits and win-win results, accommodating each other’s concerns and strengthening multilateral cooperation to safeguard common interests.
“As long as they remain committed to the overarching goal of being partners, not rivals, and providing development opportunities, not threats, China-India relations will flourish and move forward steadily,” Xi has said.
Modi, who was on his first visit to China since relations between the two countries plummeted to decades-long low after Chinese and Indian soldiers engaged in deadly border clashes in mid-2020, has said in his opening remarks that relations with China had moved in “a meaningful direction,” adding that “there is a peaceful environment at the borders after disengagement.”.
Visiting China after a gap of seven years, Modi said India was “committed to take forward” the ties with China “based on mutual trust, respect and sensitivity,” noted the timesofindia.com Aug 31.
* * *
Later, responding to the Chinese readout of Xi’s remarks, India’s foreign secretary Vikram Misri said Modi had made it very clear that the boundary situation will have an impact on bilateral relations, reported the timesofindia.com Sep 1.
“From the very beginning, we have maintained, and at various levels we have made it clear, that the situation on the boundary will inevitably have some impact on bilateral relations. And that is precisely why the most important kind of ‘insurance policy’ for our bilateral ties is to maintain peace and tranquillity on the boundary. So today, the Prime Minister himself also conveyed this very clearly to President Xi, and we will continue to maintain this position,” theprint.in Sep 1 quoted Misri as saying at a special briefing on Modi’s visit to China.
According to the Indian readout too, Modi underlined the importance of peace and tranquility on the border areas for continued development of bilateral relations. During the standoff that lasted well over four years, India had maintained that there would not be business as usual until the border issue was resolved, the report said.
In the meanwhile, the two sides have agreed to work together to maintain border peace and tranquility. “It is the right choice for both of us to be friends, to have good neighbourly and amicable ties, partners who enable each other’s success, and to have the dragon and the elephant dance together,” Xi has added.
* * *
The move by India and China to mend their ties in recent days is seen as a shift largely prompted by global trade disruptions triggered by US President Donald Trump’s tariff policies. During their meeting, Modi and Xi expressed optimism about a “newfound commitment” to strengthen relations. They spoke of shared civilisational values, their roles in the Global South, and the potential for economic cooperation, noted the financialexpress.com Sep 1.
However, beneath their friendly words of cooperation as development partners rather than rivals lies a more complex and delicate reality, the report said.
Wendy Cutler, Senior Vice President at the Asia Society Policy Institute, has said, writing on LinkedIn, that while Modi and Xi “used all the diplomatic words available” to convey goodwill, the structural imbalances in trade remain unresolved.
Noting that, India’s trade deficit with China reached $99 billion last year, and this figure shows no sign of narrowing in the near future. For Delhi, this poses a strategic challenge, as it undermines efforts to build self-reliance and foster domestic manufacturing, she has said.
Also, China’s vast manufacturing surplus, worsened by American restrictions, is flooding markets abroad. India, like many Southeast Asian countries, is grappling with a surge of cheap Chinese imports that threaten to displace local production. To counter this, India has already launched several antidumping cases targeting Chinese goods, the report said.
This highlights the contradiction at the heart of India-China trade relations – that cooperation may be politically desirable, but competition on the economic front is unavoidable, Cutler has said.
For India as per experts, managing ties with China is a matter of striking a delicate balance. On one hand, the two countries share an interest in stabilising global trade, safeguarding strategic autonomy, and amplifying the voice of the Global South. On the other, the reality of imbalanced trade ties and dependence on Chinese goods, cannot be ignored, the report said.
Besides, apart from the unresolved border issues, ties between the two countries are bound to be tested also by China’s unqualified support for India’s arch-enemy Pakistan including on the issue of terrorism, and China’s building of the potentially geologically-disastrous and also militarily threatening Yarlung Tsangpo river super-dam close to India’s border.
So, the “dragon and the elephant” may indeed dance together, but only with careful steps and constant vigilance, the report said.