Prime Minister Narendra Modi and Chinese President Xi Jinping met on the sidelines of the Shanghai Cooperation Organisation (SCO) Summit in Tianjin on Sunday, marking a fresh step in rebuilding relations after last year’s military standoff on the border.
Foreign Secretary Vikram Misri, briefing the media after the meeting, said the talks focused on addressing the wide trade deficit, enhancing policy predictability, and tackling challenges like cross-border terrorism.
Trade Balance a Priority
India’s trade with China remains heavily tilted in Beijing’s favour. Indian imports totaled $113.5 billion in FY 2024–2025, but exports to China were just $14.25 billion, resulting in a $99.2 billion imbalance. This imbalance has widened dramatically from just $1.1 billion in 2003-04.
“It is a fact that there is a large and ongoing trade deficit between India and China,” Misri acknowledged. Modi told Xi that rebalancing trade and addressing market access concerns were crucial for long-term stability. The need to lower the deficit, enhance bilateral investment flows, and guarantee more policy transparency was emphasized by both presidents.
Cross-Border Terrorism Discussed
The issue of cross-border terrorism was also highlighted in the talks. Modi described it as a priority for both nations, urging “understanding and support to each other” in combating terror.
According to Misri, India has received cooperation from China on this issue within the context of the SCO Summit. The remarks came against the backdrop of Indian concerns over China’s past support for Pakistan during periods of military tension.
Partnership Over Rivalry
As relations normalize post-border standoff, both leaders stressed that India and China should be seen as partners, not rivals. “The common interests of the two countries outweigh their differences,” Misri said, noting that cooperation between the two economies could benefit their combined 2.8 billion citizens.
The leaders also touched on strengthening people-to-people ties, cooperation on trans-border rivers, and resuming direct flights.
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Direct Flights to Resume Soon
Misri revealed that technical talks on restarting flights are already advanced. An Indian civil aviation delegation recently visited Beijing, and pending issues related to scheduling and the air services agreement are expected to be resolved soon. “My understanding is that these will be addressed in the coming few weeks and we should see a resumption of direct flights soon after that,” he said.
