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PM, Xi Boost India-China Ties With Direct Flights, Trade, Optics: 10 Points

by aweeincm1

August 31, 2025

Both PM Modi and President Jinping have welcomed steady progress in their bilateral ties since they last met in Russia for the BRICS summit. They noted that they are partners, and not rivals, and that their differences should not turn into disputes.
India and China will resume direct flights in a big step towards reconciliation, PM Modi noted, but did not give a specific date. The direct flights were suspended during the COVID-19 pandemic, prompting travellers to pass through Hong Kong or Singapore.
PM Modi spoke about the resumption of the Kailash Mansarovar Yatra and tourist visas during their meeting. India and China had resumed the pilgrimage to Mount Kailash and Lake Mansarovar in Tibet earlier this year. Last month, India began issuing tourist visas to Chinese citizens. Both were suspended during the 2020 pandemic.
The Prime Minister also noted that the two countries should pursue strategic autonomy, and their relations should not be seen through a third country’s lens. “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,” said a statement.
India and China relations had soured following the 2020 Galwan clashes, but both nations have been working to mend their ties, with their meeting in Russia’s Kazan last year paving the way for further reconciliation. PM Modi and President Xi Jinping noted that the disengagement had led to peace and tranquillity along the border areas.
President Jinping also stressed India and China remain “friends and good neighbours”. He noted that both are important members of the Global South and should shoulder the responsibility of improving the well-being of the citizens of the two countries.
He further said that India and China should not let the border issue define the overall relationship and work together to maintain peace and tranquillity. He emphasised that the two countries must handle their ties from a strategic and long-term perspective, and promote a sustained, healthy, and stable development of their bilateral relations.
The improvement in ties with China could be helpful for both countries, the largest in the world in terms of population. While the Indian EV sector would benefit by offering room for the Chinese companies to grow, the Chinese economy would also get a boost from greater access to Indian markets.
Both sides have also agreed to reopen border trade following foreign minister-level talks earlier this month, which would help in diversifying trade at a time of severe tariff uncertainties. China has also assured India that it will address its need for rare earth minerals, fertilisers, and tunnel boring machines.
The diplomatic upswing comes at a time when India’s relations with the US have soured due to Trump’s tariffs. New Delhi getting closer to Beijing raises an alarm for the US foreign policy, undoing decades of American efforts to pull apart the two massive economies.