Politics

PM Modi, President Xi express commitment to fair, reasonable resolution of boundary issue; pledge to boost trade ties

Talks highlight India-China partnership on border peace, reducing trade deficit, and global economic stability

August 31, 2025

At the SCO Summit, Modi and Xi discuss border stability and trade expansion

Prime Minister Narendra Modi and Chinese President Xi Jinping on Sunday agreed to work towards a “fair, reasonable and mutually acceptable” solution to the India-China border issue and pledged to expand trade and investment ties, recognizing the role of the two economies to stabilise global trade.

In their wide-ranging talks, the two leaders largely focused on boosting trade and investment ties, a move that came against the backdrop of disruptions in global trade triggered by US President Donald Trump‘s sweeping tariffs, including a whopping 50 percent on Indian goods.

In the meeting held on the margins of the Shanghai Cooperation Organisation (SCO) summit, PM Modi underlined the importance of peace and tranquility on the border areas for the continued development of India-China ties and said that New Delhi is committed to advancing the relations based on “mutual trust, respect, and sensitivity”. The two leaders vowed to expand bilateral trade and investment ties, reduce trade deficit, and agreed to expand common ground on bilateral, regional, and global issues and challenges like terrorism and fair trade in multilateral platforms, according to an Indian readout.

“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,” Modi said in Hindi in his televised opening remarks.

Modi and Xi recognized the role of the two economies to stabilize world trade and underlined the need to proceed from a political and strategic direction to expand bilateral trade and investment ties and reduce trade deficit, the Ministry of External Affairs (MEA) said in the readout.

“The Prime Minister noted that India and China both pursue strategic autonomy, and their relations should not be seen through a third country lens,” it said. “The two leaders deemed it necessary to expand common ground on bilateral, regional, and global issues and challenges, like terrorism and fair trade in multilateral platforms,” it added. In a social media post, Modi described his talks with Xi as “fruitful“.

Had a fruitful meeting with President Xi Jinping in Tianjin on the sidelines of the SCO Summit. We reviewed the positive momentum in India-China relations since our last meeting in Kazan. We agreed on the importance of maintaining peace and tranquility in border areas and… pic.twitter.com/HBYS5lhe9d
— Narendra Modi (@narendramodi) August 31, 2025

“We reviewed the positive momentum in India-China relations since our last meeting in Kazan. We agreed on the importance of maintaining peace and tranquility in border areas and reaffirmed our commitment to cooperation based on mutual respect, mutual interest, and mutual sensitivity,” said Modi.

In the last few months, both sides have initiated a series of measures to reset their ties that came under severe strain following the deadly clashes between Indian and Chinese troops in Galwan Valley in June 2020. Modi, who landed in China last evening after a gap of seven years, said in the meeting that an atmosphere of peace and stability has been prevailing along the border since he and Xi met in October last year in the Russian city of Kazan.

Modi also expressed support for China’s presidency of the SCO and the summit in Tianjin. He also invited President Xi to the BRICS summit that India will be hosting in 2026. President Xi thanked Modi for the invitation and offered China’s support to India’s BRICS Presidency, according to the MEA.

Modi also had a meeting with Cai Qi, a Member of the Standing Committee of the Politburo of the Communist Party of China. The Prime Minister shared with Cai his vision for bilateral relations and sought his support to realize the vision of the two leaders, the MEA said. “Cai reiterated the Chinese side’s desire to expand bilateral exchanges and further improve relations in line with the consensus reached between the two leaders,” it said.

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