Modi’s visit to China signals improving ties
Chinese President Xi Jinping and Indian Prime Minister Narendra Modi visited the Temple of Daci’en in China on May 14, 2015, Xi’an.
Sheng JiaPeng | CNSphoto | VCG | Getty Images
When Foxconn remembered hundreds of Chinese engineers from a factory in India last month, reported Beijing was a reminder of the restless ties between Asia’s two largest economies, following the guidance to reduce technology transfer to his neighbor.
However, while faced with the tariff temperature from Washington, economic difficulties can push Beijing and New Delhi into reluctant cooperation and transform contentious relationships?
This probability will be tested in Tianjin, where China will meet with President Xi Jinping for the 25th Shanghai Cooperation Organization Summit of Indian Prime Minister Narendra Modi during the weekend. Modi’s first visit to China in seven years after the deadly Galwan Valley conflict between Indian and Chinese soldiers in 2020.
The Indian Ministry of Foreign Affairs marked the possibility of bilateral meetings between the summit and may have negotiations at the new Delhi and Beijing Tianjin.
Indian-China experts do not largely see the summit as the beginning of a long-term friendship between the two countries. “The suspicion of China works in the depths of India, Think Think Tank Gateway House is Senior, Senior, Energy, Investment and Connection Senior Bhandari. However, in the face of US tariffs and changing supply chains, China and India find themselves right to each other.
During his two -day visit to Delhi last week, Chinese Foreign Minister Wang said that India and China should see each other as “partners” instead of “competitors or threats”.
“It is unlikely that China’s partnership will be as it is with Russia or the United States,” Bhandari said. He said.
India has a surplus of trade with the United States, which is 45.8 billion dollars as of 2024. On the other hand, CT It has an expanding gap with China, Something he tries to wait but can’t. India’s trade deficit with China was 99.2 billion dollars for the year ending on March 2025, a year ago, the total imports from Beijing from Beijing touches the highest 113.45 billion dollars of all time.
According to the Embassy of India in China, “The trade deficit concerns are two -forching. One is the real size of the deficit. The duo is the continuous expansion of imbalance every year.” “We continue to join the Chinese side to address market access problems.”
China’s close relationship with Pakistan is another painful point for India. According to A report China from the International Peace Research Institute of Stockholm gave a large weapon to 44 states in 2020-24 and about two-thirds or 63%of the arms export is going to Pakistan. In the report, China provided 81% of Pakistan’s arms imports from 2020 to 2024.
According to experts, the SCO meeting is unlikely to solve disputes between the two neighbors or to heal old wounds. However, Modi’s presence in Tianjin can be a signal of the desire to find a common ground.
Economic necessity
New Delhi tried to position itself as a production center for global companies that want to diversify supply chains from China.
For example, India exceeded China as the US best smartphone supplier in the second quarter, while China’s share of smartphone exports to the United States fell from 61% to 25% compared to the previous year.
Priyanka Kishore, the chief economist of the Asian economy and policy -oriented thinking organization, said the country could not fully benefit from a “China plus” opportunity because of the trade barriers between the new Delhi and Beijing.
“Countries that want to be China+1 destinations should take their raw materials or intermediate goods from China until they can improve their own abilities at home. India is not in the position of producing and providing all intermediate goods and raw materials.” He said.
Various industries in India are very dependent on China.
By adding that the Global Trade Research Initiative is Ajay Srivastava, India is India’s lock supplier, China provides 70% of India’s needs, while China provides 70% of India’s requirements. “He said.
Electric vehicles are another industry where India is very dependent on Chinese materials.
In order to restrict raw import invoices, the Indian government has set ambitious targets for the adoption of electric vehicles. According to the data of Niti Aayog, the Indian government policy aims to announce its homes by 2030 by 2030 until 2030.
This is a long question, considering that most Indian home manufacturers trust China for the supply of key elements, such as rare earth magnets. “Our government forced the automobile industry in a position based on China for key components such as rare earth magnets, lithium, cobalt. He said.
Last week, during his visit to India, the Chinese Foreign Minister would be sure that his country would need India’s need for rare worlds, tunnel boring machines and fertilizers.
China also earns the trade ties with its neighbor. India forbade several Chinese enterprises from operating in the country. Forbidden, such as Shein, such as e-commerce companies, social media platform Tiktok’a affected various companies.
Access to the Indian market can be a great support for Chinese companies at a time when there is a slowdown in domestic consumption. For example, India’s home market offers a place for Chinese companies to grow as they encounter intense competition at home.
“BYD wants to open a factory in India, now Vietnam’s vinfast has already been allowed. Chinese industries are dealing with excessive production and excessive capacity and they need other markets with demand from the US market.” He said.
Following Wang’s visit, direct flights from India to Mainland to China will continue in 2020 after Wang’s visit. Both sides agreed to reopen the border trade at three trade points.
In July, Indian companies such as Reliance Industries and Adani Group are partnership with Chinese companies.
Although the signs are positive, it makes it difficult to see the long -standing doubts and border disputes as close partners. The SCO meeting will provide more clarity about how the elephant and dragon will be on the tango and how long it will last.
