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Getting back on track
Financial Express Pune
|August 20, 2025
China provides India a critical counterbalance to US as a source of capital and technology
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China's reported decision to consider resumption of exports of rare earth magnets and fertilisers marks a big step in fixing a relationship that went sour after the Galwan crisis of 2019. The thaw started in earnest last October when President Xi Jinping of China met with Prime Minister Narendra Modi at a summit of emerging economies in Kazan, Russia. Since then, the two countries have increased official visits and discussed easing trade barriers and the movement of people. They have eased travel visa restrictions and are working to restore direct flights. In June, Beijing allowed pilgrims from India to visit holy sites in Tibet. China and India are also in discussions to reopen three trading posts along their mountainous boundary. This month, Modi will visit China for the first time in seven years to attend a regional security summit meeting in Tianjin.
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