Current Affairs

India-China Relations: Fostering Strategic Partnership Through Mutual Respect

Author: VisionIAS Editorial Team

Aug 20, 2025Current Affairs11 min read

India-China Relations: Fostering Strategic Partnership Through Mutual Respect

India and China seek to strengthen bilateral ties through the “three mutuals” framework as ministers seek to address border disputes, trade imbalances, and river water sharing during the first high-level visit in three years.

The recent meeting between External Affairs Minister S. Jaishankar and Chinese Foreign Minister Wang Yi in New Delhi marked significant progress in India-China relations. This engagement represents the first ministerial visit by a Chinese official to India in three years, following tensions after the 2020 Galwan Valley clash.

As both nations navigate their relationship while commemorating 75 years of diplomatic ties, the discussions centred on the “three mutuals” framework – mutual respect, mutual sensitivity, and mutual interest.

Wang Yi’s visit gains importance against the backdrop of China’s dam project on the Yarlung Tsangpo (Brahmaputra) in Tibet, located 30 kilometers from the Indian border. This development has concerns about water security, making the dialogue on river data sharing and cooperation mechanisms crucial for stability. This diplomatic engagement comes when both nations seek to manage their relationship while pursuing their national interests.

Table of Contents

Three Pillars Framework: Mutual Respect, Sensitivity, and Interest

The Ministry of External Affairs (EAM) of India has emphasized a three-pronged approach to managing India-China relations in this discussion. This framework encompasses mutual respect for sovereignty, mutual sensitivity to each other’s concerns, and mutual interest in regional stability and development.

During the discussions, both sides acknowledged the importance of maintaining peace and tranquility along the border areas. The principle that differences should not escalate into disputes, and competition should not transform into conflict, has become central to managing this relationship.

This approach recognizes the reality that as two developing economies with a combined population exceeding 2.8 billion people, both nations carry global responsibilities. Their relationship extends beyond bilateral concerns to impact regional stability and international order.

Despite the comprehensive framework for engagement, several persistent irritants continue to challenge the bilateral relationship. These include territorial disputes along the Line of Actual Control, trade imbalances, strategic competition in the Indo-Pacific region, and differing approaches to regional connectivity projects.

Border Management and De-escalation: Progress and Challenges

Among these challenges, the border issue stands out as one of the most significant and complex irritants that requires sustained diplomatic attention and careful management. The Line of Actual Control remains the most sensitive aspect of India-China relations. This is because the boundary between the two nations have not been clearly demarcated.

Developments indicate progress in managing border tensions, with both sides achieving disengagement in Eastern Ladakh following the 2024 agreement.

The National Security Advisor level dialogue mechanism, particularly the Special Representatives talks, has emerged as a platform for addressing boundary disputes. These discussions focus on delimitation negotiations, border management protocols, and confidence-building measures.

Both nations have established buffer zones and patrol arrangements to prevent confrontations, with specific agreements on patrol points.

The establishment of hotlines between military commanders and flag meetings has helped maintain communication channels. These mechanisms have proven effective in preventing incidents from escalating into confrontations.

However, the de-escalation process requires constant commitment from both India and China. While military tensions have reduced through the Senior and High Military Commander Level (SHMCL) talks that helped disengage at four points, the boundary question remains unresolved.

Economic Dimensions: Addressing Trade Imbalances

The geopolitical rivalry between India and China extends beyond border disputes and diplomatic rhetoric, manifesting in profound economic and regional competition. India’s trade deficit with China reached a record high of $99.2 billion in fiscal year 2024-25, a cause for concern.

A structural imbalance characterizes this trade relationship, with India’s exports heavily concentrated in low-value, low-technology segments like mineral products, chemical products, and raw agricultural goods. Whereas, imports from China are dominated by manufactured goods, machinery, and electronic equipment. This trade imbalance reflects competitive dynamics between the two economies.

India has emphasized the need to address restrictive trade measures and create a balanced economic relationship. Both sides have expressed interest in exploring cooperation in emerging sectors while managing competitive aspects of their economic engagement.

Discussions have focused on resuming economic exchanges, including the restoration of direct flights and facilitation of business visas. These measures aim to rebuild confidence and create momentum for cooperation.

Multilateral Cooperation: BRICS, SCO, and Global Governance

Both nations actively participate in multilateral platforms like BRICS and Shanghai Cooperation Organisation (SCO), where they find common ground. Such platforms allow both countries to demonstrate responsible leadership in addressing global challenges from climate change to economic stability.

Their cooperation in multilateral settings often transcends bilateral tensions, reflecting shared interests in reforming international institutions and promoting developing country perspectives in global governance.

Security Cooperation: Counter-terrorism and Regional Stability

Counter-terrorism cooperation represents another important dimension of the bilateral relationship. Referring to India’s security concerns, India’s External Affairs Minister Jaishankar pointed out that the country continues to face cross-border terrorism, largely sponsored by Pakistan. This raises questions on the growing Pakistan-China partnership in recent years.

During recent discussions, both sides acknowledged the importance of combating terrorism in all its forms and manifestations as a shared priority.

The National Security Advisor level engagement provides a framework for intelligence sharing and coordination on security challenges that affect both countries. Regional stability in South Asia requires ongoing cooperation between these major powers.

Both nations face challenges from extremist groups and recognize that security cooperation benefits regional peace and development. This pragmatic approach to security issues demonstrates the potential for constructive engagement despite political differences.

Cultural and People-to-People Exchanges: Building Understanding

Beyond political and economic dimensions, cultural exchanges play a vital role in building mutual understanding. The resumption of the Kailash Mansarovar Yatra after a five-year suspension represents a significant milestone following formal discussions between Indian and Chinese officials. This restoration of access to sacred sites reflects the deep civilizational connections between these societies.

Educational exchanges, academic cooperation, and cultural programs help create constituencies for positive relations in both countries. These people-to-people connections provide stability during periods of political tension.

This approach recognizes that sustainable relations require broad-based engagement across multiple sectors of society, not just government-to-government dialogue.

Regional Dynamics: Neighborhood Policies and Influence

Both India and China pursue active neighborhood policies that create overlapping spheres of influence in South Asia and the Indo-Pacific region. The geopolitical competition extends to the Indian Ocean region, with China’s “String of Pearls” strategy challenging India’s “Neighbourhood First” policy.

China and India are engaged in strategic competition in the Indian Ocean region, with China developing infrastructure facilities through the Belt and Road Initiative (BRI) in Pakistan, Sri Lanka, Bangladesh, and Myanmar, and India strengthening partnerships with island nations and expanding its naval infrastructure.

Managing this competition requires ongoing dialogue about interests and operational boundaries, and both countries recognize the importance of sustainable regional engagement to prevent destabilization or zero-sum dynamics in the region.

The Line of Actual Control dispute demonstrates how strategic competition can generate tensions. However, both sides have shown capacity to address such challenges through established diplomatic mechanisms, as reflected in the 2024 border agreements and continued Special Representatives dialogue process.

Managing Competition While Building Cooperation

The path forward in India-China relations requires sustained effort to build trust while managing competitive aspects of the relationship. Both nations must balance their global ambitions with the need for regional stability.

The framework of mutual respect, mutual sensitivity, and mutual interest provides a roadmap for this complex relationship. Success will depend on translating these principles into concrete actions and consistent policy implementation.

Regular high-level exchanges, including visits by senior officials like the China foreign minister and National Security Advisor level dialogue, help maintain communication channels and prevent misunderstandings from escalating into crises.

Conclusion

Recent diplomatic engagement highlights a new level of pragmatism in the India-China relationship. While difficulties persist, both nations are proving capable of prioritizing cooperation when it serves their common goals and mutual interests.

The emphasis on maintaining peace along the Line of Actual Control, addressing economic imbalances, and cooperating in multilateral forums provides a foundation for stable relations. India’s approach of principled engagement offers a pathway for managing differences while building cooperation.

As both nations continue their development journey, their ability to manage this relationship will significantly impact regional stability and global prosperity. The current diplomatic momentum, if sustained through consistent implementation of agreed principles, can contribute to a more stable and cooperative Asia-Pacific region.

The success of this relationship will ultimately depend on both countries’ commitment to the three pillars of mutual respect, sensitivity, and interest, ensuring that their partnership contributes to regional peace and global stability.