Prime Minister Mr. Narendra Modi and Chinese President Mr. Xi Jinping vow to stabilise world trade, boost investment ties
- IBEF
- September 1, 2025
Prime Minister Mr. Narendra Modi and Chinese President Mr. Xi Jinping, on August 31, 2025, agreed that India and China’s economies can play a stabilising role in global trade amid the ongoing US trade war. Meeting on the sidelines of the Shanghai Cooperation Organisation (SCO) Summit in Tianjin, the leaders underlined the need to view bilateral trade and investment strategically while ensuring the trade deficit narrows. Prime Minister Mr. Narendra Modi likened peace at the border to an “insurance policy” for ties, while Chinese President Mr. Xi Jinping said relations should not be defined solely by boundary issues. Both leaders stressed that India and China are partners with greater consensus than differences, and that disputes should be avoided. India’s Foreign Secretary Mr. Vikram Misri said the leaders saw an opportunity to “leverage” the global tariff situation to strengthen commercial ties, with direct flights between the two nations set to resume soon.
Chinese President Mr. Xi Jinping suggested four steps to deepen ties: strengthening communication, expanding cooperation, accommodating each other’s concerns, and bolstering multilateral coordination. He called on both countries to safeguard fairness, justice, and multilateralism, stressing the SCO’s role in countering US-led tariffs. Prime Minister Mr. Narendra Modi emphasised that India and China, both pursuing strategic autonomy, should not let third countries shape their relations. He also met the member of the Standing Committee of the Politburo of the Communist Party of China, Mr. Cai Qi, to seek support for stronger ties. The leaders welcomed steady progress since their October 2024 meeting in Kazan. Prime Minister Mr. Narendra Modi invited Chinese President Mr. Xi Jinping to India for the Brics Summit next year.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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