Prime Minister Narendra Modi held critical talks with Chinese President Xi Jinping on the sidelines of the Shanghai Cooperation Organisation (SCO) Summit in Tianjin, China, addressing pressing issues like cross-border terrorism, the India-China trade deficit, and border stability. The meeting, their second in a year, marked a significant step toward rebuilding bilateral ties strained by the 2020 eastern Ladakh standoff, with both leaders emphasizing a partnership rooted in mutual trust and respect. Foreign Secretary Vikram Misri, briefing the media, underscored India’s firm stance and the constructive outcomes of the dialogue.

Modi raised concerns about cross-border terrorism, securing China’s cooperation on the issue, a priority for New Delhi given the regional security challenges. The leaders also tackled the substantial trade deficit, with India’s exports to China lagging significantly behind imports. They agreed to work toward solutions to reduce this imbalance, recognizing the critical role of their economies in stabilizing global trade amid disruptions from U.S. tariffs, including a 50% levy on Indian goods. Modi invited Xi to the 2026 BRICS Summit in India, signaling a commitment to deepen high-level engagement.

Both leaders reaffirmed the importance of peace and tranquility along the Line of Actual Control (LAC), noting the disengagement achieved in October 2024 as a foundation for progress. Modi stressed that stable border relations are essential for advancing India-China ties, advocating that differences should not escalate into disputes. The leaders positioned their nations as partners, not rivals, sharing a vision for long-term growth and development that could drive an “Asian century.” They also discussed enhancing bilateral trade, addressing logistical challenges like resuming direct flights, and fostering cooperation on global issues like terrorism.

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The talks highlighted a mutual desire to expand common ground, with both sides agreeing that a stable, amicable relationship benefits not only their nations but also regional and global progress. Modi’s principles of mutual respect and sensitivity guided the discussions, which covered defense, connectivity projects like the Chabahar port, and India’s concerns over China’s Belt and Road Initiative, including the China-Pakistan Economic Corridor (CPEC). The leaders’ commitment to dialogue reflects a pragmatic approach to managing a complex relationship, critical for both nations’ strategic interests.

As India navigates global trade pressures and regional security dynamics, the Modi-Xi meeting sets a forward-looking tone for India-China relations. With agreements to boost trade, fight terrorism, and maintain border peace, the summit underscores India’s assertive diplomacy while fostering hope for a balanced partnership. Modi’s engagement, his first at the SCO Summit, signals India’s pivotal role in shaping Asia’s future alongside China, with the 2026 BRICS Summit poised to further this dialogue.

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