Modi, Xi project ‘partners not rivals’; pledge progress on border truce, trade gap | Key takeways

Prime Minister Narendra Modi and Chinese President Xi Jinping on Sunday pledged to stabilise relations and prevent their differences from escalating into disputes, as the leaders of the world’s two most populous nations met on the sidelines of the Shanghai Cooperation Organisation (SCO) summit.

The talks, held on the sidelines of the Shanghai Cooperation Organisation summit in Tianjin, marked Modi’s first visit to China in seven years. Both leaders welcomed what they called a “positive momentum” in relations since their last encounter in Kazan in October 2024, and agreed that India and China should be seen as “development partners and not rivals,” according to a statement from India’s Ministry of External Affairs.

Here are the key takeaways from the Modi-Xi meeting:

PM Modi stressed that peace along the 3,800-kilometre border was essential for ties to move forward. The leaders took note of last year’s disengagement and pledged to work toward a “fair, reasonable and mutually acceptable” resolution of the boundary dispute, a source of decades of friction and a deadly clash in 2020.

Foreign Secretary Vikram Misri told reporters that Modi also raised cross-border terrorism, calling it a “priority” for both countries to combat. “We have received the understanding and cooperation of China as we have dealt with the issue,” he said. The remark hinted that the summit’s final declaration may include language critical of militant groups operating from Pakistan, a close Chinese ally.

Modi and Xi discussed boosting people-to-people exchanges through direct flights and visas, building on the resumption of the Kailash Manasarovar Yatra. They also acknowledged the need to stabilise world trade and narrow India’s yawning trade deficit with China by setting “a political and strategic direction” for bilateral economic ties.

The meeting came amid growing pressure on both countries from the West. Days earlier, US President Donald Trump slapped 50% tariffs on Indian goods, partly over New Delhi’s continued purchase of Russian oil. Analysts say the new US tariffs have pushed New Delhi closer to Beijing and Moscow, with the Tianjin summit billed as a major show of Global South solidarity.

Both leaders stressed their countries’ pursuit of “strategic autonomy”, a signal that they want ties judged on their own merits rather than through the lens of US-China rivalry.

Modi, who voiced support for China’s presidency of the SCO, invited Xi to attend the BRICS summit in India in 2026. Xi thanked Modi for the invitation and pledged support for India’s chairmanship.

The prime minister also held a separate meeting with Cai Qi, a senior Communist Party official, to discuss ways to advance the leaders’ shared vision of closer ties.

The SCO gathering is the largest in the bloc’s history, drawing 10 member states, 20 invited leaders and 10 heads of international organizations, including UN Secretary-General António Guterres.