Prime Minister Narendra Modi held an important bilateral meeting with Chinese President Xi Jinping on August 31, 2025, on the sidelines of the Shanghai Cooperation Organisation (SCO) Summit in Tianjin.

This high-level engagement marks a significant step forward in the evolving trajectory of India-China relations, particularly in light of the gradual stabilisation witnessed since their last interaction in Kazan in October 2024.

Both leaders welcomed the steady progress in bilateral ties, affirming that the world’s two most populous nations must approach their relationship as development partners rather than rivals. They underscored that while differences are natural between major powers, such divergences should not be allowed to escalate into disputes.

The joint sentiment highlighted the need for a stable, cooperative relationship based on mutual respect, sensitivity, and interests, not only for the prosperity of their combined 2.8 billion people but also for the shaping of a multipolar Asia and a balanced global order aligned with 21st-century realities.

A key focus of the discussions was the continuing importance of peace and tranquillity along the India-China border, which has long been a sensitive point in their relations.

Prime Minister Modi stressed that the maintenance of border stability remains the foundation for furthering bilateral cooperation. President Xi reciprocated this stance, with both sides noting satisfaction at the successful disengagement efforts of the previous year and the sustained calm since then.

They reiterated their commitment to pursuing a fair, reasonable, and mutually acceptable settlement to the boundary issue, one that prioritises the broader political consensus on the necessity of cooperation.

The leaders acknowledged the constructive decisions reached in the recent talks between their designated Special Representatives earlier this month and pledged continued support to these mechanisms with the aim of inching closer to a durable solution.

Beyond security, the discussions reflected a conscious effort to broaden ties across people-to-people contact, trade, and investment. The leaders recognised the symbolic and practical importance of initiatives such as the resumed Kailash Manasarovar Yatra, direct air connectivity, and improved visa facilitation as pathways to strengthening cultural and people-centric engagement.

On the economic front, both acknowledged the weight of their economies in stabilising global trade at a time when uncertainties loom large in many markets.

They placed emphasis on adopting a politically guided and strategically oriented framework to deepen bilateral trade and investment, while also working towards narrowing the persistent trade deficit between the two countries. Such an approach is expected to strike a balance between economic pragmatism and strategic foresight.

Prime Minister Modi underlined that India and China both adhere to strategic autonomy in foreign policy, which means their relationship must not be shaped through the narrow prism of a third country’s influence.

This perspective resonates with the necessity for pragmatic, independent cooperation on regional and global issues ranging from counter-terrorism to reforming multilateral trading systems. Both leaders appeared aligned on expanding common ground in global governance forums, where their cooperation could significantly influence negotiated outcomes.

As a sign of mutual diplomatic support, Prime Minister Modi expressed appreciation for China’s chairmanship of the SCO and its successful organisation of the Tianjin Summit. He also extended an invitation to President Xi to attend the BRICS Summit in 2026 in India, to which Xi responded with gratitude and assured China’s strong support for India’s presidency in the grouping.

In addition to his meeting with President Xi, Prime Minister Modi also held discussions with Cai Qi, a senior leader and Member of the Standing Committee of the Politburo of the Communist Party of China.

During this conversation, Modi elaborated on his vision for an upgraded India-China partnership, underscoring the need for sustained political will, long-term planning, and institutional cooperation to bring about tangible outcomes. Cai Qi welcomed this outlook and reaffirmed Beijing’s readiness to work collaboratively to expand bilateral engagement and translate the shared understanding of the top leaders into practical measures.

The meeting between Prime Minister Modi and President Xi was a carefully choreographed effort to inject positivity into India-China ties.

While structural challenges such as the boundary dispute and trade imbalance remain, the reaffirmation of mutual partnership, the emphasis on a peaceful border, and the opening of new avenues for people-to-people and economic engagement reflect a broad-based attempt to stabilise and recalibrate one of the most complex bilateral relationships in the world.

The willingness to situate their relationship within the wider framework of a multipolar Asia and multipolar world order also suggests that India and China are seeking to leverage their partnership for greater influence in global governance while guarding their strategic autonomy.

Agencies