Tensions, Talks And A Turning Point In Sino-Indian Relations

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It was Modi's first visit to China in seven years and since bilateral relations deteriorated badly following deadly border clashes in 2020 .

By deepening engagement with China, Modi signals that India will not allow itself to be boxed into a singular alignment with Washington. Instead, New Delhi is seeking to expand its strategic space – balancing partnerships with the US and Japan while pursuing pragmatic outreach to Beijing.

This dual-track diplomacy is consistent with India's long-time strategic autonomy through a non-aligned foreign policy.

But can Modi's visit really improve bilateral ties? There are several indications that India-China relations are moving in a more constructive direction. During Foreign Minister Wang's visit to India , Beijing agreed to lift export restrictions on rare earths, fertilizers and tunnel-boring machines, easing some economic pressure on New Delhi.

Both governments pledged to resume visa issuance and restore direct flights, signaling a willingness to normalize people-to-people and governmental exchanges.

In April, also, China's foreign ministry announced it would allow Indian pilgrims to visit Hindu and Buddhist sites in Tibet Autonomous Region for the first time in five years, reflecting renewed cultural and religious engagement.

Despite these positive developments, significant structural obstacles remain. Border and territorial disputes continue to be among the thorniest issues. The 2020 Galwan Valley clash , which resulted in casualties on both sides, still weighs heavily on trust.

Nonetheless, ongoing talks between civilian and military leaders aim to ease tensions. Last month, marking a change in tone, China's Ministry of National Defense spokesperson emphasized that the two countries should “respect each other.....and achieve win-win cooperation” while also noting the 75th anniversary of diplomatic ties between China and India.

Economic relations are also uneven. China is India's second-largest trading partner behind the US. Yet India faces a huge trade deficit with China of nearly US$100 billion , while both countries maintain high tariffs and duties across multiple sectors.

Although Chinese investment could support India's infrastructure ambitions, New Delhi remains cautious about technology dependence on Chinese companies and broader national security risks posed by reliance on China.

Strategic mistrust continues to shape bilateral dynamics. India has consistently opposed China's Belt and Road Initiative, particularly the China–Pakistan Economic Corridor, which passes through Pakistan-administered Kashmir – a territory India claims is illegally occupied by Pakistan, as well as Beijing's rising maritime presence in the Indian Ocean.

Moreover, China maintains strong economic, diplomatic and military support for Pakistan, fueling concerns in India. During the military confrontation in May, Pakistan reportedly u sed Chinese-made fighter jets , missiles and drones against India.

Islamabad claims Chinese equipment helped Pakistan shoot down six Indian aircraft . New Delhi has denied these claims, stating that it shot down five Pakistani fighter jets and one other military aircraft .

Media reports in July also quoted India's deputy army chief saying Beijing provided“live inputs” to Pakistan on Indian positions during the border incidents, underscoring ongoing strategic complications.

At the same time, India continues to host the Dalai Lama , the exiled Tibetan Buddhist spiritual leader. His long-time presence in India is seen by China as a challenge to its sovereignty over Tibet, which it annexed in 1950.