Prime Minister Narendra Modi and Chinese President Xi Jinping held extensive talks in Tianjin, China, on August 31, 2025, aiming to reset India-China relations strained since the 2020 Galwan Valley clash. The bilateral discussions, held on the sidelines of the Shanghai Cooperation Organisation (SCO) summit, come against the backdrop of global economic turbulence fueled by U.S. tariff policies under the Trump administration.

Modi, on his first visit to China in seven years, emphasized the importance of India and China—two of the world’s largest economies—working together to stabilize the global economic order. “The welfare of 2.8 billion people depends on our cooperation,” Modi said in his televised opening remarks, highlighting mutual trust, respect, and sensitivity as the foundation for advancing ties. He noted recent progress, including peace along the Line of Actual Control (LAC) following last year’s disengagement and agreements by Special Representatives on border management.

The talks build on recent diplomatic momentum. Less than two weeks prior, Chinese Foreign Minister Wang Yi visited India, engaging with External Affairs Minister S. Jaishankar and National Security Advisor Ajit Doval. Those discussions yielded measures to foster a “stable, cooperative, and forward-looking” relationship, including resuming direct flights, reopening border trade, and facilitating the Kailash Mansarovar Yatra.

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Modi congratulated Xi on China’s successful SCO presidency and underscored the positive impact of stable India-China relations on regional and global peace. The leaders explored deepening economic ties, with Modi stressing the need for predictability and amicability in bilateral relations amid global volatility. The resumption of direct flights and border trade signals a pragmatic step toward normalizing ties, which have been under strain since the deadly 2020 border clashes.

Analysts see the meeting as a critical step toward de-escalation, with both nations prioritizing cooperation over confrontation. The SCO summit provided a strategic platform for the talks, reinforcing the importance of multilateral frameworks in addressing bilateral challenges. As India and China navigate complex global dynamics, including U.S.-driven trade disruptions, this summit could mark a turning point for a more constructive partnership.

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