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Modi's China Visit: Can Trade Trump Tensions?

August 30, 2025

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The Daily Guardian

PM Modi's China visit after seven years seeks to ease border tensions and boost economic cooperation.

- RAKESH SINGH

Prime Minister Narendra Modi's visit to China marks a significant moment in India's foreign policy. It is his first trip to the country in more than seven years, coinciding with the Shanghai Cooperation Organisation (SCO) Summit in Tianjin. Modi is expected to meet Chinese President Xi Jinping and Russian President Vladimir Putin—at a time when India-China ties have been strained since the deadly 2020 border clashes in Ladakh.

Yet, shifting global dynamics and trade imperatives appear to be nudging both sides towards cautious engagement. The visit holds multiple layers of importance. Foremost, it offers an opportunity for direct dialogue on border tensions and confidence-building measures. While both nations have withdrawn troops from some friction points since 2020, the mistrust remains. Modi has repeatedly emphasised that stable relations with China are vital for peace in Asia and beyond.

In a pre-visit interview, he underlined India's readiness to work with China "on the basis of mutual respect." Analysts believe this meeting could pave the way for further discussions on the Line of Actual Control (LAC) and broader regional cooperation—signalling that Asia's two giants may find ways to collaborate in an evolving world order.

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