India-China Relations: A Year of Cautious Thaw Amid Occasional Tensions

2 min read     Updated on 25 Aug 2025, 06:01 PM
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Anirudha BasakBy ScanX News Team
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Overview

India and China have made significant strides in normalizing relations over the past year. Key developments include Modi-Xi bilateral talks at the BRICS Summit, China lifting curbs on rare earth magnet exports to India, relaxation of visa rules for Chinese technicians by India, and agreement to resume direct air services. Economic initiatives and travel easements have been implemented, including China issuing 85,000 visas to Indians. However, challenges persist, such as tensions over China's alleged aid to Pakistan during a border standoff with India and concerns over technology transfer. Jefferies suggests the improving relationship could benefit India's electronics production and supply chains.

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*this image is generated using AI for illustrative purposes only.

India and China have been navigating a complex path towards normalizing relations over the past year, marked by diplomatic and economic initiatives, interspersed with occasional setbacks. This delicate dance of diplomacy has seen both nations take significant steps to ease tensions and foster cooperation, while also grappling with lingering trust issues.

Diplomatic Milestones

A major breakthrough came when Prime Minister Narendra Modi and President Xi Jinping held their first bilateral talks in five years on the sidelines of the BRICS Summit. This high-level engagement signaled a willingness from both sides to re-establish direct communication at the highest levels of government.

Building on this momentum, Chinese Foreign Minister Wang Yi's visit to India further solidified diplomatic progress. During this visit, China made a notable concession by lifting curbs on rare earth magnet exports to India, a move that could have significant implications for India's electronics and high-tech manufacturing sectors.

Economic and Travel Initiatives

The past year has seen several initiatives aimed at boosting economic ties and easing travel restrictions:

  • India relaxed visa rules for Chinese technicians, facilitating smoother business operations for Chinese companies in India.
  • An agreement to resume direct air services between the two countries after a five-year hiatus was reached, with flights set to commence soon.
  • The resumption of the Kailash Sarovar Manas Yatra was a positive step for cultural and religious exchanges.
  • China's issuance of 85,000 visas to Indians within a few months demonstrated a reciprocal easing of travel restrictions.

Challenges and Setbacks

Despite these positive developments, the relationship faced some hurdles:

  • Tensions flared when China allegedly provided radar and satellite aid to Pakistan during a border standoff with India.
  • Concerns over technology transfer led Foxconn to recall 300 Chinese engineers from India, highlighting the sensitive nature of tech collaborations between the two countries.

Economic Implications

According to Jefferies, the improving India-China relationship could have significant economic benefits:

  • Potential for India to ramp up its electronics production
  • Improved supply chains for fertilizers and rare earth materials
  • Enhanced trade opportunities with the resumption of direct flights

Looking Ahead

While progress has been made, the India-China relationship remains complex and requires continued diplomatic efforts. The resumption of direct flights and the easing of visa restrictions are positive signs, but issues such as border disputes and technology transfer concerns continue to require careful navigation.

As both nations work towards normalizing relations, the coming months will be crucial in determining whether this cautious thaw can develop into a more stable and mutually beneficial relationship.

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India-China Relations Warm as US Criticizes India's Russian Oil Purchases

1 min read     Updated on 20 Aug 2025, 07:20 AM
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Reviewed by
Shriram ShekharBy ScanX News Team
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Overview

Indian Prime Minister Narendra Modi plans to visit China, his first trip there in seven years. This follows recent meetings with Chinese Foreign Minister Wang Yi in New Delhi. Both countries have agreed on measures to enhance bilateral cooperation, including facilitating trade, resuming direct flights, and processing more visas. China has assured India of supplies of critical resources. The nations have agreed to maintain peace in border areas through consultations. Meanwhile, India faces criticism from the US over Russian oil purchases, with threats of increased tariffs on Indian exports. This diplomatic shift could impact India's relationships with major global powers.

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*this image is generated using AI for illustrative purposes only.

Indian Prime Minister Narendra Modi has announced plans to visit China later this month, marking his first trip to the neighboring country in seven years. This development comes on the heels of recent meetings with Chinese Foreign Minister Wang Yi in New Delhi, signaling a potential thaw in the often-strained relationship between the two Asian giants.

Strengthening Bilateral Ties

Modi expressed optimism about the state of India-China relations, stating that they have made steady progress and will contribute to regional peace and prosperity. The two countries have agreed on several measures to enhance bilateral cooperation:

  • Facilitating bilateral trade
  • Resuming direct flights
  • Processing more visas

Additionally, China has assured India of supplies of critical resources, including:

  • Rare earth minerals
  • Fertilizer
  • Tunnel-boring machines

Border Tensions Addressed

Both nations have agreed to maintain peace in border areas through consultations, a crucial step given the history of territorial disputes. Indian National Security Adviser Ajit Doval noted an upward trend in bilateral ties over the past nine months, suggesting a positive shift in the relationship.

US Criticism and Trade Tensions

While India-China relations appear to be warming, the United States has taken a critical stance towards India's foreign policy decisions. US Treasury Secretary Scott Bessent accused India of 'profiteering' from Russian oil purchases, claiming that India made $16.00 billion in excess profits. In response, the US has announced plans to increase tariffs on Indian exports.

The current trade situation between India and the US includes:

  • 25% tariffs imposed on Indian exports by the Trump administration
  • Threats to double these tariffs to 50% by August 27

India's Foreign Policy Recalibration

In light of the pressure from the United States, India has been recalibrating its foreign policy, particularly towards China and other BRICS members. This shift could potentially alter the geopolitical landscape in the region and impact India's relationships with major global powers.

As India navigates these complex diplomatic waters, the upcoming visit by Prime Minister Modi to China could prove pivotal in shaping the future of India-China relations and India's position on the global stage.

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