Modi and Xi vow to stabilise world trade

Achieving 'dragon-elephant dance' the right choice: China Prez

- ARCHIS MOHAN

With both India and China facing the economic fallout from the US trade war, Prime Minister (PM) Narendra Modi and Chinese President Xi Jinping on Sunday agreed that their countries' economies could help stabilise world trade. They also underlined the need to approach bilateral trade and investment ties from a political and strategic perspective to reduce the trade deficit.

At their second meeting in less than a year, on the margins of the Shanghai Cooperation Organisation (SCO) Summit in the northern Chinese city of Tianjin, Xi told Modi that achieving a "dragon-elephant dance" is the right choice for the two neighbours.

Modi said maintaining peace and tranquillity at the border is like an insurance policy for India-China ties. However, Xi emphasised that China-India relations should not be defined merely by the boundary issue.

Modi added, with Xi agreeing, that India and China are partners, not adversaries, with far more consensus than differences. The two leaders agreed that their differences should not turn into disputes. Later, in an evening briefing to the media, India's Foreign Secretary Vikram Misri alluded to the tariff war unleashed by Washington, observing that the two leaders recognised the situation and saw potential to "leverage" it to build greater understanding between the countries, especially to advance commercial ties.