India and China, countries that are often at odds, have been working together to stabilize their historically tense relationship, with the aim of strengthening both countries’ economies and diplomacy. These moves come amid the unpredictable nature of US trade under President Trump, which has led New Delhi and Beijing to prioritize bilateral engagement and reduce external pressure on their interactions.
Pragmatic diplomacy drives India-China engagement despite U.S. pressure
From talks on resuming direct flights to a series of high-level bilateral visits, longtime rivals China and India are quietly and cautiously strengthening ties against the backdrop of U.S. President Donald Trump’s unpredictable approach to both.
Officials from both countries are focusing on incremental progress. Visits, technical talks, and consultations on the resumption of air travel aim to gradually rebuild trust. This approach allows India and China to manage sensitive security issues, such as the Himalayan border, while expanding trade opportunities.
High-level meetings aim to resolve border disputes and improve connectivity
Chinese Foreign Minister Wang Yi is scheduled to visit New Delhi next week for talks with India’s National Security Adviser Ajit Doval on their disputed Himalayan border, the second such meeting since a deadly clash in 2020 between Indian and Chinese troops, two people familiar with the matter said.
Indian Prime Minister Narendra Modi is set to meet Chinese President Xi Jinping at the end of the month when he travels to China – his first visit in seven years – to attend the summit of the Shanghai Cooperation Organization, a regional security bloc.
Trade and tariffs shape renewed India-China economic cooperation
The engagements follow a thaw in India and China’s five-year standoff after an agreement last October on patrolling their Himalayan border, which eased the strain on bilateral ties that had hurt trade, investment and air travel.
Relations were further boosted in recent weeks amid new tensions in India-U.S. ties after decades of progress, analysts said, as Trump imposed a 50% tariff on Indian exports to the United States – one of the highest levels among Washington’s strategic partners. The United States and China, meanwhile, this week extended a tariff truce for another 90 days, staving off triple-digit duties on each other’s goods.
The resumption of direct flights and the possible expansion of cross-border trade are seen as practical measures to strengthen trade between the countries. Although these initiatives represent a small portion of trade, they are an indication of the beginning of a normalization of relations. Such measures can also protect both countries against external economic pressures, especially the recent US tariff measures.
China and India have already agreed to resume direct flights suspended since 2020 and are discussing easing trade barriers, including reopening border trade at three Himalayan crossings. While border trade accounts for only a small portion of the $127.7 billion bilateral trade recorded in the last fiscal year, its revival is seen as a symbolic step toward normalizing economic ties.
“We have remained engaged with the Chinese side to facilitate the resumption of border trade through all the designated trade points,” India’s foreign ministry spokesperson, Randhir Jaiswal, told a regular press conference on Thursday.
Economic rules and investments signal cautious re-engagement with China
India’s foreign ministry did not immediately respond to a request for comment on the exact timing. Meanwhile, India’s government think-tank has proposed easing investment rules that effectively require additional scrutiny for Chinese companies — another sign of a potential shift in economic engagement.
Proposals to ease investment restrictions for Chinese companies and measures to restore trade and transport links indicate that India and China are prioritizing cooperation over ideological or political disputes. This approach could lay the foundation for more predictable and stable relations in the region, even with persistent external pressures.
GCN.com/Reuters