Tianjin: India and China on Sunday agreed to work towards a “fair, reasonable and mutually acceptable” solution to their festering border issue as Prime Minister Narendra Modi and Chinese President Xi Jinping vowed to expand trade and investment ties to stabilise global trade.
In their talks on the margins of the Shanghai Cooperation Organisation (SCO) summit, Modi and Xi focused on deepening bilateral economic ties at a time India is going through possibly the worst phase of its relations with the US in over two decades with the strain exacerbated by President Donald Trump’s tariff policy and constant criticism of New Delhi by his administration.
PM Modi, on his first visit to China in seven years, underlined the importance of peace and tranquility on the border areas for continued development of bilateral ties and asserted that New Delhi is committed to advancing the relations based on “mutual trust, respect, and sensitivity”.
“Our cooperation is linked to the interests of 2.8 billion people of our two countries. This will also pave the way for the welfare of all humanity,” Modi said in Hindi in his televised opening remarks.
An Indian readout said, Modi and Xi, delving into economic and trade relations, recognised the role of their two economies to stabilise world trade.
After over four years of frosty ties over the eastern Ladakh military standoff, India and China began to repair the relations following a meeting between Modi and Xi in the Russian city of Kazan in October last year that took place after the face-off ended.
The talks between Modi and Xi covered a range of issues including reducing their trade deficit, tackling challenges like terrorism and ensuring fair trade in multilateral platforms.
At a media briefing, Foreign Secretary Vikram Misri said maintenance of peace and tranquility at the border is like an insurance policy for India-China ties and PM Modi conveyed this position to President Xi.
The prime minister also mentioned the challenge of cross-border terrorism and pitched for extending support to each other to combat the menace as both India and China have been impacted by it, he added.
Modi and Xi recognised the role of the two economies to stabilise world trade and underlined the need to proceed from a political and strategic direction to expand bilateral trade and investment ties and reduce trade deficit, the Ministry of External Affairs (MEA) said in the readout.
“They expressed commitment to a fair, reasonable, and mutually acceptable resolution of the boundary question proceeding from the political perspective of their overall bilateral relations and the long-term interests of the two peoples,” it said.
The MEA said the prime minister noted that India and China both pursue strategic autonomy, and their relations should not be seen through a third country lens, it said.
“The two leaders deemed it necessary to expand common ground on bilateral, regional, and global issues and challenges, like terrorism and fair trade in multilateral platforms,” it added.
In a social media post, Modi described his talks with Xi as “fruitful”.
“We reviewed the positive momentum in India-China relations since our last meeting in Kazan. We agreed on the importance of maintaining peace and tranquility in border areas and reaffirmed our commitment to cooperation based on mutual respect, mutual interest and mutual sensitivity,” he said.
In the last few months, both sides have initiated a series of measures to reset their ties that came under severe strain following the deadly clashes between Indian and Chinese troops in Galwan Valley in June 2020.
In his remarks, Xi made an indirect reference to turbulence triggered by the US policies on trade and tariff.
The Chinese president talked about “both fluid and chaotic” global situations and said India and China, as important members of the Global South, should strengthen cooperation on major international and regional issues, defend international fairness and justice, uphold multilateralism, and promote a multipolar world.
Modi said in the meeting that an atmosphere of peace and stability has been prevailing along the border since he and Xi met in October last year in the Russian city of Kazan.
“Both leaders welcomed the positive momentum and steady progress in bilateral relations since their last meeting in Kazan in October. They reaffirmed that the two countries were development partners and not rivals, and that their differences should not turn into disputes,” the MEA said.
“A stable relationship and cooperation between India and China and their 2.8 billion peoples on the basis of mutual respect, mutual interest and mutual sensitivity are necessary for the growth and development of the two countries, as well as for a multipolar world and a multi-polar Asia befitting the trends of the 21st century,” it said.
Modi noted that India and China both pursue strategic autonomy, and their relations should not be seen through a third country lens, according to the MEA.
“The two leaders deemed it necessary to expand common ground on bilateral, regional, and global issues and challenges, like terrorism and fair trade in multilateral platforms,” it said.
It said the two leaders noted with satisfaction the successful disengagement of troops last year and the maintenance of peace and tranquility along the border areas since then.
“They recognised the important decisions taken by the two Special Representatives in their Talks earlier this month, and agreed to further support their efforts,” it added.
Modi and Xi also noted the need to strengthen people-to-people ties through direct flights and visa facilitation, building on the resumption of Kailash Manasarovar Yatra and tourist visas.
“On economic and trade relations, they recognised the role of their two economies to stabilize world trade. They underlined the need to proceed from a political and strategic direction to expand bilateral trade and investment ties and reduce trade deficit,” the MEA said.
Modi also expressed support for China’s presidency of the SCO and the summit in Tianjin.
He also invited President Xi to the BRICS summit that India will be hosting in 2026.
President Xi thanked Modi for the invitation and offered China’s support to India’s BRICS Presidency, according to the MEA.
Modi also had a meeting with Cai Qi, Member of the Standing Committee of the Politburo of the Communist Party of China.
The prime minister shared with Cai his vision for bilateral relations and sought his support to realise the vision of the two leaders, the MEA said.
“Cai reiterated the Chinese side’s desire to expand bilateral exchanges and further improve relations in line with the consensus reached between the two leaders,” it said.
