PM Modi Likely to Meet Xi Jinping Amid Trade Tensions with the US

Prime Minister Narendra Modi is expected to hold a bilateral meeting with Chinese President Xi Jinping on Sunday. The meeting is likely to take place on the sidelines of the Shanghai Cooperation Organization (SCO) summit in Tianjin, China, scheduled for August 31 to September 1. Modi will be visiting China at the invitation of Xi Jinping, marking his first trip to the country in seven years.

First Visit to China in Seven Years

The upcoming visit is significant as Modi last traveled to China in 2018. The two leaders last met on October 23, 2024, in Kazan, Russia, during the BRICS summit. This new meeting is being seen as an attempt to strengthen ties between India and China at a time when global trade dynamics are shifting.

Border Disputes Witness De-escalation

The talks come as tensions along the Line of Actual Control (LAC) in eastern Ladakh have eased. Both India and China have agreed on patrol rights in the Depsang plains and Demchok region. This development is seen as a breakthrough in the ongoing border dispute that began in May 2020 after Chinese incursions. The standoff severely strained diplomatic relations, but recent agreements have opened a window for further dialogue.

India-China Relations After Years of Strain

Relations between India and China took a sharp downturn following the military standoff in Ladakh. Over the years, both nations have engaged in multiple rounds of talks to de-escalate tensions. Recent initiatives, such as reopening the Mansarovar Yatra, issuing visas for Chinese tourists, and exploring the possibility of resuming direct flights, reflect renewed efforts to normalize ties. These steps, though limited, signal intent from both sides to stabilize relations.

US Tariff War in the Background

The Modi-Xi meeting comes against the backdrop of strained relations between India and the United States over tariffs. Washington’s imposition of a 50 percent tariff on Indian goods has sparked concerns of a trade war. The development has put pressure on New Delhi to diversify its global economic partnerships. Analysts believe that Modi’s engagement with China during this period could be a strategic move to balance trade relations.

Strategic Timing of the Meeting

The timing of this meeting holds significance for both India and China. For India, strengthening relations with Beijing could provide leverage in dealing with Washington’s aggressive trade policies. For China, improving ties with India could serve as a counterbalance to its growing tensions with the US. The SCO summit provides a neutral platform for both leaders to explore avenues of cooperation beyond their existing disputes.

Impact of Pakistan Factor

In May this year, attempts to improve relations suffered a setback after evidence emerged that China actively supported Pakistan’s military during hostilities linked to Operation Sindoor. This revelation reignited concerns in New Delhi about Beijing’s strategic ties with Islamabad. Despite this, both sides appear keen on rebuilding channels of dialogue, suggesting that mutual interests in trade and regional stability outweigh temporary setbacks.

Broader Geopolitical Implications

Observers note that the Modi-Xi meeting will not only address bilateral concerns but also carry wider geopolitical implications. With tensions in South Asia, trade wars with the US, and regional security issues, India and China have incentives to cooperate. A coordinated approach could reshape economic alignments in Asia, particularly as both nations are key members of the SCO.

Focus Areas for Dialogue

Though official agendas have not been announced, experts expect discussions to cover border management, trade cooperation, people-to-people exchanges, and regional security. Resuming direct flights and promoting tourism could also feature in talks as both sides look to rebuild confidence. India may push for assurances on reducing Chinese support for Pakistan, while China may seek India’s cooperation on trade within the SCO framework.

Prime Minister Modi’s expected meeting with President Xi Jinping comes at a crucial moment in global politics. With US-India trade tensions escalating and border disputes with China easing, the dialogue could mark a new phase in bilateral relations. While challenges remain, including China’s ties with Pakistan, the willingness to meet reflects a mutual recognition of shared interests. The outcome of this meeting will be closely watched, as it has the potential to redefine India-China relations and reshape broader regional dynamics.