Chinese Ambassador to India, Xu Feihong, has proclaimed a new era in bilateral relations, announcing that trade between China and India soared to a record $155.6 billion in 2025. This figure marks a striking 12 per cent year-on-year increase, reflecting robust economic momentum despite lingering geopolitical frictions.

The ambassador made these remarks during a Chinese New Year reception in New Delhi on Tuesday, coinciding with the onset of the 'Year of the Horse'. He described the ties as having evolved from a mere "reset" to a "new level of improvement", crediting a pivotal August meeting in Tianjin between Prime Minister Narendra Modi and President Xi Jinping.

India's exports to China rose by 9.7 per cent over the same period, underscoring untapped potential in sectors like pharmaceuticals, agricultural goods, and minerals. Ambassador Xu highlighted this growth as evidence of the two nations' capacity for deeper economic collaboration, even as India's trade deficit with China persists at around $85 billion.

In parallel, Xu provided insights into China's economy, revealing a GDP surpassing 140 trillion yuan—equivalent to roughly $20 trillion—with five per cent growth. This expansion accounted for over 30 per cent of global economic growth, positioning China as a powerhouse amid shifting international dynamics.

People-to-people exchanges have also revived significantly. China has reinstated the pilgrimage for Indian devotees to the sacred Mount Kailash and Lake Mansarovar in the Xizang Autonomous Region, drawing nearly 20,000 participants last year. India, in turn, has resumed issuing tourist visas to Chinese nationals, while direct flights between the mainland and India now operate smoothly.

Xu drew philosophical parallels between the civilisations, likening China's vision of "a world of great harmony" to India's ancient mantra of Vasudhaiva Kutumbakam—the world as one family. He also equated Beijing's emphasis on self-reliance with New Delhi's Atmanirbhar Bharat initiative, suggesting shared intellectual roots.

The ambassador's personal reflections added a cultural dimension. His visits to the Ajanta and Ellora Caves, along with Rabindranath Tagore's Santiniketan, deepened his appreciation for the spiritual and historical bonds linking the two countries.

Prospects for 2026 appear promising. Xu voiced China's support for India's tenure as BRICS rotating chair, pledging closer coordination to champion Global South interests and genuine multilateralism.

He reiterated Beijing's commitment to viewing India as a partner for cooperation and mutual development, urging both sides to mine wisdom from their traditions. The Lichun event—marking spring's arrival—attracted diplomats, the Chinese diaspora, and sector representatives, evoking optimism for the lunar year ahead.

This thaw follows years of tension, including the 2020 Galwan Valley clash that claimed lives on both sides and led to military build-ups along the Line of Actual Control. Recent disengagement pacts in eastern Ladakh have paved the way for such diplomatic overtures.

Trade resilience stands out amid these challenges. Electronics, machinery, and chemicals dominate Chinese imports to India, while iron ore, seafood, and cotton bolster Indian shipments. Efforts to diversify supply chains persist, yet interdependence endures.

India's push for self-reliance has spurred domestic manufacturing, reducing reliance on Chinese components in mobiles and renewables. Nonetheless, the ambassador's upbeat tone signals pragmatic engagement over confrontation.

BRICS cooperation could amplify this trajectory, with India leveraging its chairmanship to address debt sustainability and technology transfers—issues vital to emerging economies. China's endorsement hints at tactical alignment against Western-led forums.

Cultural diplomacy, too, plays a subtle role. Restored pilgrimages and visas foster goodwill, countering narratives of rivalry. Xu's invocation of shared heritage aims to humanise relations strained by border disputes and strategic competition.

Economically, the $155.6 billion milestone surpasses pre-pandemic peaks, driven by post-COVID recovery and supply chain stabilisations. Projections suggest further gains if infrastructure and digital trade barriers ease.

Challenges remain, including India's scrutiny of Chinese investments and calls for fairer trade practices. Beijing's overtures may test New Delhi's balancing act between economic pragmatism and security imperatives.

The reception's timing, on Lichun's eve, symbolises renewal—a fitting metaphor for Sino-Indian ties entering the Dragon Year with cautious hope.

Based On ANI Report