Five years after the violent Galwan Valley battle significantly strained their relationship, India and China are actively working to repair and stabilise their ties amid intensified trade tensions involving the U.S. under the Trump administration.

Chinese Foreign Minister Wang Yi's visit to India in August 2025 marked a key moment in this diplomatic thaw, featuring talks with External Affairs Minister Dr. S. Jaishankar and National Security Adviser Ajit Doval to address ongoing disputes and enhance bilateral cooperation.

Dr. Jaishankar highlighted that both nations aim to advance beyond a "difficult period" by adopting a candid and constructive approach based on "mutual respect, mutual sensitivity, and mutual interest," urging that "differences must not become disputes, nor competition conflict."

The discussions spanned multiple issues including economic and trade matters, pilgrimages, people-to-people contacts, river data sharing, border trade, connectivity, and bilateral exchanges. A crucial aspect was the renewal of border peace talks to maintain tranquillity along the Line of Actual Control (LAC) and push forward de-escalation efforts, which are considered the foundation for positive momentum in the relationship.

China explicitly framed the global context of their engagement, with Wang Yi stating that the world is undergoing "a once-in-a-century transformation at an accelerating pace," describing U.S. policies as "unilateral bullying rampant" which challenge free trade and the international order.

He urged China and India, as the two largest developing countries with a combined population of over 2.8 billion, to show global responsibility, set an example for developing nations, and promote a multipolar world and democratisation of international relations.

This rhetoric clearly signals Beijing's stance amidst the Trump administration's escalating tariff war against India, where Washington has imposed tariffs of up to 50% on Indian exports in response to India's continued purchase of Russian oil. Notably, the U.S. has avoided secondary sanctions on China despite its oil dealings with Russia, citing the complexities of China's role in refining and reselling global oil supplies.

On the economic front, China responded positively to India's concerns by agreeing to lift export curbs on critical items, including fertilisers, rare earth elements, and tunnel boring machines—goods vital for India's agriculture, technology, and infrastructure sectors.

Rare earths, essential for manufacturing high-tech products and military equipment, had been a strategic concern due to China's dominant production. Resumption of these exports is expected to alleviate supply chain constraints in Indian industries and help stabilise production capacities.

This diplomatic and economic thaw also includes practical steps such as reinstating pilgrimages to sacred Tibetan sites, resuming direct flights suspended since 2020, and reopening border trade through designated Himalayan checkpoints.

Both sides have committed to maintaining peace and tranquillity along border areas, gradually restoring exchanges and dialogue that were paused after the 2020 clash. Wang Yi's visit is viewed as part of a broader effort leading up to Prime Minister Narendra Modi's participation in the upcoming Shanghai Cooperation Organisation summit in China, symbolising a strategic yet cautious warming of ties between the two Asian powers.

China conveyed a message to India during Wang Yi's visit that amid the unpredictable and punitive trade measures from the Trump administration, the two nations should strengthen cooperation based on mutual respect and shared interests.

It emphasised countering unilateralism and fostering a multipolar global order while responding to India's strategic economic concerns. This evolving India-China rapport contrasts with the heightened U.S.-India trade tensions and highlights a complex geopolitical recalibration influenced significantly by the global disruptions caused by Trump's tariff war.

Based On NDTV Report