Indian Prime Minister Narendra Modi has emphasized the need for stronger ties with China, stating that normalcy has returned to the disputed India-China border. His remarks, made in a recent interview, signal a potential shift in relations between the two Asian giants, which have remained strained since the violent border clash in Ladakh in 2020. The Chinese government responded positively, with foreign ministry spokeswoman Mao Ning expressing appreciation for Modi’s words and advocating for partnership between the two nations.
Despite past tensions, India and China continue to engage in economic and diplomatic cooperation. Trade between the two countries remains robust, with China being India’s top trading partner even after the Ladakh incident. They also collaborate in multilateral forums such as BRICS and the Asian Infrastructure Investment Bank. In recent months, there have been key developments that suggest efforts to restore trust, including a high-level agreement in October that allowed for the resumption of border patrols and a direct meeting between Modi and Chinese President Xi Jinping at the BRICS summit in Russia.
However, significant challenges remain. Both countries maintain strong security alliances with each other's main rivals—India with the United States and China with Pakistan. Disputes over Kashmir, China's opposition to India's inclusion in global forums like the Nuclear Suppliers Group, and military tensions in the Indo-Pacific further complicate the relationship. Beijing's Belt and Road Initiative, which extends into territory claimed by India, remains a major point of contention, as does India’s growing relationship with Taiwan and its hosting of the exiled Tibetan leader, the Dalai Lama.
While military and diplomatic discussions continue, border disputes remain a key factor in determining the future of bilateral ties. The Ladakh clash deeply damaged trust, but recent agreements have aimed at de-escalating tensions. Future high-level engagements between Modi and Xi could play a crucial role in improving relations, with potential meetings expected at upcoming BRICS and G20 summits.
Economic cooperation also presents an opportunity for better ties. Increased Chinese investment in India’s industries, from manufacturing to renewable energy, could help ease India’s trade deficit with China. A stronger economic partnership could provide incentives to stabilize relations and reduce geopolitical tensions.
Regional and global dynamics will also shape the trajectory of India-China relations. Several of India’s neighboring countries, including Bangladesh, Nepal, Sri Lanka, and the Maldives, now have leaders with stronger ties to Beijing. However, their current approach appears to be one of balancing relations between the two powers rather than aligning exclusively with China. The outcome of the ongoing Ukraine war and its effect on Russia’s foreign policy, as well as potential shifts in U.S.-China relations—particularly under a possible future Trump administration—could also influence India’s strategic approach toward Beijing.
As Asia’s two largest nations, India and China remain natural competitors. Yet, recent developments suggest that diplomatic and economic engagements could help stabilize their relationship. Whether Modi’s call for stronger ties translates into lasting change will depend on continued negotiations, confidence-building measures, and how both nations navigate the broader geopolitical landscape.