Modi’s visit to China signals the improvement of connections

If Foxconn reminded of hundreds of Chinese engineers from the factory in India last month, justify Following the instructions in Beijing to stop the technology of transferring a neighbor, this is reminiscent of difficult ties between the two largest Asian economies.

But with both countries facing the tariff heat from Washington, could the economic problems push Beijing and New Delhi to reluctant cooperation, transforming their competitive relations?

Such an opportunity will be checked last weekend in Tianjin, where Indian Prime Minister Narendra Modi is to meet with Chinese President Xi Jinping at the 25th Shanghai Cooperation summit. This will be the first Modi visit to China in seven years, after the death valley of Galvan -dollers between Indian and Chinese soldiers in 2020.

New Delhi and Beijing could negotiate in Tianjin, as the Indian Foreign Ministry marked the possibility of bilateral meetings on the sidelines of the summit.

India-China experts do not largely consider the summit as the beginning of a long friendship between the two countries. “China’s suspicion goes deep in India,” said Amit Bjandari, senior employee, energy, investment and connection, in House Think Tank Gateway. But before tariffs to us and switching the supply chains, China and India find themselves together.

During his two -day visit to Delhi last week, Chinese Foreign Minister Van YI said that India and China should view each other as “partners” rather than “opponents and threats”.

“It is unlikely that the Chinese partnership will look like in India with Russia or us,” Bjandar said.

India enjoys surplus trading goods from the US, which is at $ 45.8 billion as of 2024. On the other hand, on the other hand it Has an extension deficit with China, What he tried to stop but could not do. Trade deficit in India with China amounted to $ 99.2 billion a year, ended on March 2025, which is approximately $ 85 billion a year before, with total imports from Beijing to the maximum of $ 113.45 billion.

“Our problems with the trade deficit twice.” We continue to deal with the Chinese side to address the market access. “

China’s close connection with Pakistan is another painful moment for India. According to A a AR report From the Stockholm International Institute for Peace, China handed over large weapons to 44 states in 2020-24, almost two -thirds of weapons exports, or 63%, go to Pakistan. China supplied 81% of Pakistan’s weapons imports from 2020 to 2024 compared to 74% between 2015 and 2019, the report said.

According to experts, the meeting in the SCO is unlikely to resolve disputes or cure old wounds between two neighbors. But the presence of Modi in Tianjin can be a signal of the readiness to find a common language.

Several branches of India are very dependent on China.

“For conventional chemicals based API (active pharmaceutical ingredients), China provides 70% of India’s requirements, while it provides nearly 90% for Biosimal API,” said Aji Srivstak on the initiative of the global trading research, adding that China is a key supplier, electronic.

Electric vehicles are another industry where India depends on Chinese supplies.

In order to reduce its bill on raw imports, the Indian government set ambitious goals to adopt electric vehicles. It is aimed at EVS to make up 30% of new cars sales by 2030, which compared to 7.6% in 2024, according to Indian government political analytical tanks Niti Aayog.

This is a high request, given that most Indian EV manufacturers rely on China for the supply of key items such as rare land magnets. “Our government has pushed a car industry in a position when it rests on China for key components such as rare earth magnets, lithium, cobalt … Therefore, the key production industry is vulnerable to violations,” Bjandar said.

Last week, during a visit to India, China’s Foreign Minister assured that his country would solve India’s need in rare lands, tunnel boring machines and fertilizers.

China can also profit from strengthening trade ties with its neighbor. India has banned several Chinese companies to work in the country. The ban has affected a diverse range of firms from e -commerce companies such as Shein to the Tiktok social media platform.

Access to the Indian market can be a great impetus for Chinese companies at a time when internal consumption slows down. For example, the EV Indian market offers opportunities for Chinese companies when they face intensive home competition.

“Byd would like to open a factory in India, now that Vietnam is already allowed. The Chinese industry is engaged in excessive production and excess capacity, and with the demand of the US market, they need other markets,” Kishor said.

Later on the sign of warming, after the Vang’s visit, direct flights from India to mainland China, which have been suspended since the start of the Covid-19 pandemic in 2020. Both sides agreed to restore the border trade in three designated outlets.

Indian companies such as Reliance Industries and Adani Group are also conducting partnerships with Chinese companies, Economic Times reports in July.

While the signs are positive, long suspicion and border disputes make it difficult to consider both countries as close partners. A meeting in the SAS will give great clarity of how an elephant and a dragon tango, and for a long time.