Prime Minister Narendra Modi and Chinese President Xi Jinping on Sunday, August 31, agreed to work towards a “fair, reasonable and mutually acceptable” settlement of the India-China border issue and pledged to expand trade and investment cooperation. The talks took place on the sidelines of the Shanghai Cooperation Organisation (SCO) summit in Tianjin.
Against the backdrop of global trade disruptions following U.S. President Donald Trump’s tariff hikes, the two leaders underlined the role of India and China as stabilisers of world trade.
Modi stressed that peace and tranquillity along the border were essential for the progress of bilateral ties. “Our cooperation is linked to the interests of 2.8 billion people of our two countries. This will also pave the way for the welfare of all humanity,” he said.
The Ministry of External Affairs said both leaders agreed that India and China “are development partners, not rivals,” and that “differences should not turn into disputes.” They welcomed troop disengagement and a stable atmosphere along the border since their last meeting in Kazan in October 2024.
On economic ties, Modi and Xi vowed to reduce the trade deficit and strengthen investment flows. They also discussed enhancing people-to-people exchanges, including direct flights, visa facilitation, and the Kailash Manasarovar Yatra.
Modi invited Xi to attend the BRICS summit hosted by India in 2026. Xi thanked Modi for the invitation and assured China’s support for India’s BRICS presidency.
The meeting comes after years of strained relations following the 2020 Galwan Valley clashes. Both leaders said progress in ties should be guided by “mutual trust, respect, and sensitivity” and should not be viewed “through a third-country lens.”
