Diplomatic reboot in Delhi: Xi-Modi BRICS talk signals Indo-China thaw

IPA Staff
7 Min Read

By TN Ashok

In an era marked by global turbulence and shifting alliances, the bilateral meeting between Chinese President Xi Jinping and Indian Prime Minister Narendra Modi at the BRICS summit in New Delhi signalled a cautious but significant step toward stabilizing one of Asia’s most consequential relationships.

The discussions, held amid a complex international landscape, touched upon multiple facets—trade, border disputes, regional conflicts, and the future of multilateral cooperation—reflecting both the enduring tensions and the shared interests of the two Asian giants.

Since the deadly clash in the Galwan Valley in June 2020, which resulted in casualties on both sides and led to a prolonged military standoff, India and China’s diplomatic engagement has been largely frozen. Official channels and military dialogues were suspended or reduced, and the relationship was marred by mutual mistrust, especially over border issues and regional influence. However, recent months have seen a tentative thaw, with renewed diplomatic contacts, including border disengagement agreements in October 2024, and efforts to restore economic and people-to-people links.

Against this backdrop, the summit offered a platform for Xi and Modi to address the future of their relationship and to reaffirm their mutual responsibilities as two of the world’s most populous nations and key members of the Global South.

Xi Jinping’s opening remarks framed their bilateral engagement within a broader vision. He emphasized that China and India, despite their different national circumstances, hold “significant responsibilities” in a world “fraught with turbulence and change.” Xi underscored the importance of mutual learning, shared success, and pursuing common development, advocating for an “equal and orderly multipolar world” that benefits all.

Modi, for his part, highlighted the importance of peace and tranquillity along the border, emphasizing that “differences should not become disputes.” He reaffirmed India’s commitment to resolving boundary issues through existing agreements and emphasized the importance of strategic, long-term ties. The Indian statement pointedly noted that both countries should maintain a “strategic and long-term perspective,” and that the border dispute should be addressed in a manner consistent with their overall bilateral relationship.

Border issues, particularly the contentious boundary in the Himalayas, remain a sensitive subject. The 2020 Galwan Valley clash cast a long shadow, but recent diplomatic efforts, including the “Special Representatives’ Dialogue,” have aimed at maintaining peace and stability. Both leaders expressed a desire to find a “mutually acceptable resolution” that considers their long-term interests. Modi emphasized that peace along the Line of Actual Control (LAC) remains essential for cooperation, while Xi reiterated the need for confidence-building measures and sustained dialogue.

While no definitive border resolution was announced, the dialogue signals an intent to prevent escalation and to keep diplomatic channels open, emphasizing that “differences should not become disputes.”

Economic ties, though substantial—with bilateral trade exceeding US$150 billion—remain uneven and politically sensitive. Xi Jinping underscored the importance of supporting “high-quality cooperation” within BRICS, advocating for an inclusive, multipolar global economy. Both leaders agreed to intensify people-to-people exchanges and address concerns related to market access, trade imbalances, and supply chain security.

Beyond bilateral issues, there was speculation about the possibility of BRICS exploring alternative financial arrangements, such as a shared currency or financial mechanism to reduce dependency on the US dollar. While no explicit discussion about a unilateral BRICS currency was publicly disclosed, the summit’s broader theme of economic sovereignty and financial independence suggests that member countries are contemplating ways to bolster intra-BRICS trade outside the traditional dollar system.

While the primary focus was bilateral and economic, the broader geopolitical context—such as conflicts in Ukraine and Iran—loomed in the background. Both China and India, as influential members of the Global South, have expressed a desire for a more balanced international order, advocating for diplomacy and multilateralism rather than unilateral actions.

Xi Jinping’s remarks about supporting an “inclusive” multipolar world” and “global peace and stability” implicitly touched on issues like the Ukraine conflict. India, which maintains a neutral stance but seeks to promote peace, has consistently called for dialogue and diplomatic resolution.

Although specific discussions on Ukraine or Iran were not publicly detailed, the emphasis on multilateralism aligns with their shared interest in reducing global conflicts and promoting stability.

The bilateral talks also revisited longstanding territorial disputes, including in Arunachal Pradesh and the border in Ladakh. While no immediate breakthroughs were announced, both leaders expressed a commitment to resolving issues peacefully and through existing mechanisms. Xi Jinping’s statement that “differences should not become disputes” underscores a recognition of the importance of diplomacy.

The image of Modi and Xi holding hands during the summit, along with their public gestures and statements, serve as symbolic efforts to project unity and a shared desire for peace, even as underlying tensions remain.

The Xi-Modi meeting at the BRICS summit did not produce sweeping breakthroughs but marked an important step toward recalibrating their relationship. By reaffirming mutual responsibilities, emphasizing diplomatic engagement over conflict, and exploring avenues for economic cooperation, both leaders demonstrated a shared aspiration for stability and progress in a turbulent world.

As the international community watches, the true test lies ahead: whether this diplomatic thaw can translate into tangible improvements in border management, trade, and regional stability. The summit’s undertones of multilateralism and economic independence also hint at a future where China and India, despite their differences, may find common ground within a reshaped global order—one that balances strategic competition with mutual cooperation. (IPA Service)

 

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