December 29, 2025
High-level dialogue resumed through special representatives and ministerial visits, signalling intent to stabilise ties
Modi and Xi reaffirmed a partnership-based approach and rejected viewing bilateral relations through a third-country lens
Travel links, pilgrimages, visas and flights were restored, reflecting incremental confidence-building measures
Trade saw a modest rise in Indian exports to China, but the overall imbalance and strategic rivalry remain unresolved
India and China ended 2025 on a tentative but positive note as both sides sought to rebuild ties after more than four years of strain following the eastern Ladakh boundary conflict. The two countries embarked on a long process of normalisation after agreeing in October 2024 to end the border face-off, closing a tense chapter that began with the 2020 Galwan clash.
With relative calm returning along the border, a key precondition for improved ties from New Delhi’s perspective, the two sides stepped up diplomatic engagement. National Security Adviser Ajit Doval and Chinese Foreign Minister Wang Yi, serving as Special Representatives on the boundary question, initiated measures to improve relations gradually.
During his July visit to China, External Affairs Minister S Jaishankar said both sides should build on the progress made in normalising ties to address outstanding border issues, including de-escalation. The political signalling continued in August, when Prime Minister Narendra Modi and President Xi Jinping met in Tianjin, amid tariff threats from US President Donald Trump.
At the meeting, Modi and Xi underlined that India and China viewed each other as development partners rather than rivals and that differences should not escalate into disputes. They stressed the need for a stable relationship and cooperation rooted in mutual respect, interests and sensitivities, not only for their own development but also for a multipolar world and a multipolar Asia. Modi also conveyed that both countries pursued strategic autonomy and that their relationship should not be framed through the prism of a third country.
Momentum on normalisation was reflected in people-to-people measures, beginning with the resumption of Indian pilgrims’ visits to Kailash and Mansarovar in Tibet. This was followed by eased visa procedures and the restart of flights between multiple cities after more than five years. President Xi is also expected to visit India in 2026 for the BRICS summit, which is expected to accelerate the normalisation process.
Economic tensions also surfaced after China blocked exports of key rare-earth metals to India, alongside similar curbs on the US and the EU. The restrictions disrupted Indian automobile manufacturing and other industries. While Beijing later cleared selective export licences to the US following a semiconductor-related agreement with Washington, Indian officials said the curbs on India had only been partially lifted.
Even so, dialogue continued across multiple fronts. China pushed to revive the Russia-India-China trilateral mechanism as a platform to respond to unilateral policies that affect globalisation jointly. Bilateral trade showed limited signs of correction, with Indian exports to China rising 22% in the first half of FY 2025-26 to US$ 8.41 billion. However, the overall trade balance remained heavily skewed, with Chinese exports to India reaching US$70 billion in the same period. Officials on both sides said that despite persistent differences and strategic rivalry, the relationship was maintaining a cautiously positive trajectory.
Source: The Wire