China and India are cautiously dancing their way back to cooperation despite persisting difficulties.
In mid-July, Indian Foreign Minister Subrahmanyam Jaishankar visited China for the first time in nearly six years, underlining a tentative yet important reset in relations between Asia’s two major powers. Jaishankar met with Chinese President Xi Jinping, Foreign Minister Wang Yi, and Vice-President Han Zheng in Beijing. Although the visit did not bring about a radical breakthrough, it did mark a significant step toward restoring top-level engagement and inching toward normalization. This effort comes at a symbolic moment – the 75th anniversary of the establishment of diplomatic relations between the two nations – and reflects a broader duality: a blend of gradual rapprochement alongside enduring strategic competition.
Jaishankar, who since 2019 has represented the moderate and pragmatic wing within India’s foreign policy establishment, continues to advocate for cooperation with China and broader engagement in multilateral institutions such as the Shanghai Cooperation Organization (SCO) and BRICS. His presence in Beijing was emblematic of India’s effort to rebalance its approach to its northern neighbor.
The relevance of Sino-India relations extends far beyond bilateral dynamics. China and India are the world’s two most populous countries, belonging to fastest-growing economies. Both are ancient civilizations and increasingly influential actors in the rising Global South. As such, their ability to manage tensions and cultivate areas of cooperation carries profound implications for regional and global order.
Recently, there have been meaningful achievements in the bilateral relationship. Political dialogue and high-level engagement have resumed, contributing to greater border stability through new measures. Exchanges in various sectors and regional connectivity initiatives have intensified. Economic interdependence remains strong, and coordination between the two countries in multilateral platforms such as the SCO and the United Nations has become more robust.
A landmark event occurred in October 2024, when Chinese President Xi and Indian Prime Minister Narendra Modi met in Kazan. This meeting marked the beginning of a new phase of engagement. Notably, the positive trajectory of relations was not disrupted by the India-Pakistan conflict in May – a testament to the growing political will on both sides to deepen ties.
Economic interaction also continues to flourish. In 2024, China reclaimed its position as India’s top trading partner, surpassing the United States after a two-year hiatus. Bilateral trade reached $118.4 billion, a 4% rise from the previous year. This economic interconnectivity provides both leverage and incentive for sustained dialogue and collaboration. From China’s perspective, the deterioration in relations over recent years is viewed as an anomaly, with officials promoting the idea of improvement across multiple dimensions.
Despite these positive developments, substantial challenges persist, including the unresolved boundary dispute, which remains the most sensitive and complex issue in their relationship. The Galwan Valley clash of 2020, which led to significant casualties, caused a severe deterioration in ties. Nevertheless, the June 2025 visit by Indian Defense Minister Rajnath Singh to China suggested renewed efforts to seek a permanent resolution. Trade-related tensions also remain, with India facing restrictions on critical imports and China experiencing security concerns over investment. Geopolitical competition, particularly in South Asia and the Indian Ocean, adds complexity to their relationship, with India resisting China’s growing influence in strategically important regions.
To move forward, both nations must build trust and establish frameworks for long-term cooperation. Enhancing multilateral engagement, addressing shared economic opportunities, and fostering strategic autonomy are essential steps toward a more stable and resilient bilateral relationship. While full normalization may still be some way off, the latest developments indicate a carefully choreographed effort to navigate their complex ties and potentially redefine their role in the global order.