Mains International Relations

India-China Relations: New Chapter of Strategic Partnership on sidelines of SCO Summit 2025

Author: VisionIAS Editorial Team

Sep 1, 2025Current Affairs10 min read

India-China Relations: New Chapter of Strategic Partnership on sidelines of SCO Summit 2025

India and China emphasized their development partnership roles and emphasized stable cooperation for growth and development on the sidelines of the Shanghai Cooperation Organisation (SCO) Summit 2025.

India-China relations have entered a new phase following the meeting of Prime Minister of India and President Xi on the sidelines of the Shanghai Cooperation Organisation (SCO) Summit 2025 in Tianjin, China. This bilateral encounter on August 31, 2025, marked the Indian Prime Minister’s first visit to China in seven years, representing a diplomatic reset.

Both leaders welcomed the positive momentum in India-China relations since their previous meeting at the BRICS Summit in Kazan, Russia, in October 2024.

Table of Contents

Background: From Doklam to Diplomatic Thaw

India-China relations faced a new set of challenges after the 2017 Doklam standoff and the 2020 Galwan Valley clash in Ladakh. These incidents brought bilateral affairs to a near standstill. The Galwan Valley clash resulted in military casualties on both sides. This marked the first fatalities along the border in 45 years which altered the nature of bilateral relations.

The path to diplomatic recovery began with sustained military dialogue. Multiple rounds of corps commander-level talks facilitated gradual de-escalation. After years of stagnated relations, China and India reached an agreement in 2024 to complete military disengagement along their disputed border.

The 2024 India-China Border Patrol Agreement restored patrolling rights in Depsang Plains and Demchok region. The agreement includes provisions for both countries to withdraw troops from specific areas of contention along the LAC, with structured patrolling arrangements to maintain the status quo and prevent unilateral changes.

Key Outcomes of India-China Bilateral Meeting

Development Partnership Framework

Both leaders reaffirmed that India and China are “development partners and not rivals.” This positioning emphasizes cooperation over competition, focusing on shared goals rather than geopolitical rivalry.

Both leaders expressed satisfaction with the India-China disengagement achieved in 2024 and the maintenance of peace along the Line of Actual Control (LAC). They agreed that differences between the nations “should not turn into disputes,” establishing a clear framework for managing bilateral tensions constructively.

Independent Foreign Policy Approach

A crucial aspect of the discussions was the emphasis on strategic autonomy. The Prime Minister of India noted that India-China relations should not be viewed “through a third country lens,” highlighting both nations’ commitment to independent foreign policy decision-making.

The emphasis on independent foreign policy gains particular relevance in the context of external economic pressures. The Trump administration imposed 50% tariffs on Indian imports (including penalty on Russian oil imports) and 145% duties on Chinese goods (suspended for 90 days).

Border Management and Peace Initiatives

The Prime Minister of India emphasized the importance of peace and tranquility in border areas for the continued development of bilateral relations. Similarly, President Xi stated that both nations “must work together to maintain peace and tranquility in the border areas and not let the border issue define the overall China-India relationship.”

The leaders committed to achieving a “fair, reasonable, and mutually acceptable resolution of the boundary question” from the perspective of overall bilateral relations. Both leaders recognized the important decisions taken by the two Special Representatives in their talks earlier this month and agreed to further support their efforts in resolving boundary issues.

Trade and Economic Relations

India-China trade relations featured prominently in the discussions, with both leaders recognizing the crucial role of their economies in stabilizing world trade. The current trade relationship shows significant potential for growth, with both nations acknowledging economic interdependence despite political differences.

Both leaders emphasized the urgent need to expand bilateral trade and investment ties while working systematically to reduce the existing trade deficit. They agreed to proceed from a political and strategic direction to enhance economic cooperation, representing a pragmatic acknowledgment of the need for balanced trade relations.

The recent resumption of border trade through traditional crossing points like Lipulekh, Shipki La, and Nathu La Pass indicates growing confidence in the stability of border areas and demonstrates the potential for expanded economic cooperation in frontier regions.

BRICS and SCO Collaboration

The Indian PM expressed support for China’s Presidency of the SCO and the Summit in Tianjin. In a significant gesture of future cooperation, the Indian Prime Minister invited President Xi to the BRICS 2026 summit that India will host. President Xi expressed gratitude for the invitation and offered China’s full support for India’s BRICS Presidency, demonstrating mutual respect and collaborative spirit in multilateral frameworks.

People-to-People Connectivity and Cultural Exchange

Both leaders emphasized the importance of strengthening people-to-people ties through enhanced connectivity. The resumption of direct flights and visa facilitation measures represents significant progress in normalizing bilateral relations, facilitating business relationships, and fostering academic and cultural exchange

Building on the restoration of the Kailash Manasarovar Yatra, the reopening of tourist e-visas for Chinese nationals after a five-year hiatus in July 2025 signals a diplomatic shift aimed at strengthening cultural and economic ties between the two nations.

Global Implications and Regional Impact

The renewed engagement between India and China has significant implications for the global order. Both nations emphasized their role in promoting a multipolar world and multipolar Asia, reflecting the changing dynamics of international relations in the 21st century.

This diplomatic approach draws directly from foundational principles established decades ago. After holding bilateral talks with Prime Minister of India ahead of the SCO Summit in Tianjin, Chinese President Xi invoked the Panchsheel doctrine, stating that “the Five Principles of Peaceful Coexistence, advocated by the older generation of Chinese and Indian leaders over 70 years ago, must be cherished and promoted.”

The five principles of Panchsheel, established through the 1954 Agreement on Trade and Intercourse with the Tibet Region, include: mutual respect for territorial integrity and sovereignty, mutual non-aggression, mutual non-interference, equality and mutual benefit, and peaceful coexistence.

Their cooperation in multilateral platforms like BRICS and SCO provides a collective voice for emerging economies and developing nations, offering alternatives to traditional Western-dominated institutions. The leaders identified common ground on various bilateral, regional, and global challenges, including terrorism and fair trade.

Future Outlook and Strategic Considerations

President Xi made four suggestions to further upgrade bilateral relations positively responded to by the Indian PM, namely-

Strengthen strategic communication and deepen mutual trust
Expand exchanges and cooperation
Achieve mutual benefit and win-win results and to accommodate each other’s concerns
Strengthen multilateral cooperation to safeguard common interests

Pragmatic Engagement Model

The current phase of India-China relations represents a pragmatic approach to bilateral engagement. While fundamental differences remain, both nations have demonstrated their ability to compartmentalize issues and pursue cooperation in areas of mutual benefit. This pragmatic framework allows for continued engagement while managing competitive aspects of the relationship, creating space for positive momentum in bilateral ties.

Long-term Stability Framework

The establishment of regular high-level dialogue mechanisms and the commitment to peaceful resolution of disputes provides a foundation for long-term stability. The focus on developmental partnership rather than strategic rivalry offers a constructive framework for future interactions.

Conclusion

The India-China meeting on the sidelines of the SCO Summit 2025 marks a turning point in India-China relations. The emphasis on development partnership, strategic autonomy, and multilateral cooperation reflects a mature approach to managing one of the world’s most important bilateral relationships. This requires mutual respect, mutual interest, and mutual sensitivity.

As both nations pursue their developmental goals, the framework established through recent diplomatic engagements offers a pathway for managing differences while maximizing opportunities for cooperation. The success of this approach will have far-reaching implications not only for bilateral relations but also for regional stability and global governance in an increasingly multipolar world.