The world watched as Indian Prime Minister Narendra Modi and Chinese President Xi Jinping shook hands on Wednesday, October 23rd, at the BRICS summit in Kazan, Russia. This meeting, the first bilateral between the two leaders since 2019, marked a significant moment in the complex relationship between India and China.
The handshake came just two days after India and China signed a new border pact, aiming to restore the situation at the Line of Actual Control (LAC) to its pre-2020 state, before the Galwan Valley standoff in Ladakh. The clash had significantly strained relations, pushing India closer to the United States.
Both Modi and Xi emphasized the importance of managing their disputes during the meeting. They agreed that India and China could achieve a “peaceful and stable” relationship through maturity and mutual respect.
Modi stressed the need for peace and tranquility in the border areas, stating that mutual trust, respect, and sensitivity should underpin their bilateral relations. “India-China relations are important for the people of our countries, and for regional and global peace and stability,” he said.
Xi echoed the sentiment, acknowledging the international attention on the meeting. “It’s important for both sides to have more communication and cooperation, properly handle our differences and disagreements, and facilitate each other’s pursuit of development aspirations,” he said.
The meeting, which lasted nearly 50 minutes, also saw both leaders agree to revive the stalled Special Representatives’ Dialogue mechanism. Modi also assured India’s full support for China’s SCO presidency in 2025.
The Kazan meeting marked a significant step in rekindling relations that have been strained for years. The last time Modi and Xi met for a formal sit-down was in 2019 in Mahabalipuram, India. While they participated in several multilateral events since then, their interactions were brief and often overshadowed by the tension between their countries.
The pressure for a thaw in relations came from various quarters. Indian businesses, particularly those affected by the restrictions imposed on trade with China, urged the government to take steps to improve ties. They argued that the tough stance on China was harming Indian companies and hindering Modi’s efforts to attract high-end manufacturing, including chipmakers.
The meeting in Russia could signal a win-win situation for both India and China. Experts believe that the thaw in relations could lead to greater economic cooperation and trade between the two nations.
For India, a reset in relations with China could help reduce the country’s significant trade deficit with its neighbor. India’s trade deficit with China stood at $85 billion in 2023-24, with imports exceeding exports significantly.
For China, struggling with a sputtering economy and a property crisis, improved relations with India could offer a much-needed boost. It could also help Beijing counter the growing influence of the United States in the region.
While the Modi-Xi handshake has sparked optimism about a potential thaw in relations, experts remain cautious. While the new border pact can be seen as a confidence-building measure, it may not be enough to fully normalize ties. The future of India-China relations remains uncertain, but the recent developments suggest a shift towards greater communication and cooperation between the two Asian giants.
