The return of trade relations between China and India is increasingly strong, as the two nations align on resolving their diplomatic issues for the commercial and financial benefits of both parties. While New Delhi prioritizes access to critical materials, such as rare earth minerals, essential for high-tech manufacturing and renewable energy sectors, while China demonstrates a willingness to meet these demands.
India and China restart ties amid rare earths and infrastructure talks
India and China agreed on Tuesday to resume direct flights and step up trade and investment flows as the neighbors rebuild ties damaged by a 2020 border clash. The Asian giants are cautiously strengthening ties against the backdrop of U.S. President Donald Trump’s unpredictable foreign policy, staging a series of high-level bilateral visits.
Rare Earths at the heart of India-China discussions
The latest statements came at the end of Chinese Foreign Minister Wang Yi’s two-day visit to New Delhi for the 24th round of talks with Indian National Security (NSA) Advisor Ajit Doval to resolve their decades old border dispute. The border talks covered issues related to pulling back troops both countries have amassed on their Himalayan border, delimitation of borders and boundary affairs, the Indian foreign ministry said, without elaborating.
Beyond flights and investments, a central focus of the dialogue has been India’s need to ensure a stable supply of rare earth minerals, fertilizers, and essential machinery for infrastructure projects. Chinese assurances to meet these demands are seen as an important step toward reducing India’s dependence on alternative suppliers, while both sides explore broader commercial and technological collaborations.
China’s commitments bolster India’s industrial and tech ambitions
The talks appeared to have made no major breakthrough on those issues and Beijing said both countries agreed to meet again in China in 2026. But it also said the two countries would resume direct flights and boost trade and investment, along with smooth facilitation of visas. Direct flights have been suspended since the COVID-19 pandemic in 2020. No date was given for their resumption.
“Stable, predictable, constructive ties between India and China will contribute significantly to regional as well as global peace and prosperity,” Prime Minister Narendra Modi posted on X after meeting Wang.
Modi is scheduled to travel to China at the end of this month to take part in the summit of the Shanghai Cooperation Organization – his first visit to the country in more than seven years.
The discussions also emphasized India’s long-term strategy to strengthen domestic reserves and production of rare earth minerals. By combining China’s supply commitments with domestic development plans, India aims to secure a more resilient industrial base, particularly in the electric vehicle and high-tech manufacturing sectors.
A readout from the Chinese foreign ministry said Wang told Doval that “the stable and healthy development of China-India relations is in the fundamental interests of the two countries’ people”. The two sides “should enhance mutual trust through dialogues and expand cooperation,” Wang said, and should aim for consensus in areas such as border control and demarcation negotiations.
Key Areas of India-China Cooperation
Chinese officials say hydropower projects in Tibet will not have a major impact on the environment or on downstream water supplies, but India and Bangladesh have nevertheless raised concerns. Earlier on Tuesday, an Indian source said Wang had assured Jaishankar that Beijing was addressing three key Indian concerns – the need for fertilizers, rare earths and tunnel boring machines.
China’s guarantee of rare earths, fertilizers, and tunnel boring machines demonstrates a step toward economic cooperation, even with border issues still unresolved. This targeted support allows India to advance important industrial and infrastructure projects without immediate geopolitical compromise. It also highlights the importance of a stable supply of critical materials, which can affect global manufacturing chains and technological competitiveness.
GCN.com/Reuters