Introduction

India and China, two ancient civilizations and emerging global powers, have experienced a fluctuating relationship characterized by alternating phases of confrontation and cautious cooperation. The recent friendly interaction between Prime Minister Narendra Modi and President Xi Jinping in Tianjin symbolizes a renewed effort to recalibrate ties, influenced largely by global disruptions such as the US-China tariff conflicts under President Donald Trump. Despite their shared historical and cultural roots, their relationship remains complex due to ongoing border disputes, geopolitical rivalry, and mutual strategic mistrust. Nonetheless, both nations acknowledge the importance of collaborating on issues like global governance, climate change, and international trade.

Historical Background of India–China Relations

• Civilizational Links: India and China have shared connections for thousands of years through Buddhism, ancient trade routes like the Silk Road, and rich cultural exchanges. Historical figures such as Xuanzang and Bodhidharma facilitated significant intellectual and spiritual exchanges between the two civilizations.
• Modern Developments: Following India''s independence in 1947, it was among the first countries to recognize the People’s Republic of China (PRC). The 1954 Panchsheel Agreement, based on the Five Principles of Peaceful Coexistence, aimed to foster mutual trust and peaceful relations. However, the 1962 Sino-Indian War left lasting bitterness and mistrust.
• Recent Trends: Relations have seen fluctuations: cooperation in multilateral forums like BRICS, SCO, and climate negotiations contrasts with tensions caused by border skirmishes, China’s infrastructure projects in Pakistan-occupied Kashmir (CPEC), and strategic competition in the Indo-Pacific.

Primary Sources of Tension

• Border Disputes: The unresolved Line of Actual Control (LAC), especially in regions like Aksai Chin and Arunachal Pradesh, remains a major flashpoint. The deadly 2020 Galwan Valley clash marked the most serious confrontation in decades.
• China–Pakistan Partnership: China’s close alliance with Pakistan, including its support during military operations and at international forums, raises significant security concerns for India. The China–Pakistan Economic Corridor (CPEC), which passes through disputed territory, directly challenges India’s territorial claims.
• Diplomatic Challenges: China frequently blocks India’s efforts to gain permanent membership in the UN Security Council or to join groups like the Nuclear Suppliers Group (NSG). It also protects Pakistan from being labeled as a terrorism sponsor in international sanctions committees.
• Trade Imbalance: Bilateral trade between India and China has expanded but remains heavily skewed in China’s favor, with India running a significant trade deficit.

Areas of Cooperation

• Climate and Global Governance: India and China have coordinated on climate change efforts within frameworks like the UNFCCC and the Paris Agreement, emphasizing fairness and the principle of “common but differentiated responsibilities.” Both advocate for increased influence of the Global South in international institutions such as the IMF, World Bank, and WTO.
• Multilateral Engagement: At forums like the 2024 BRICS Summit in Kazan, the two countries acknowledged the importance of managing differences for global stability. Cooperation continues within the Shanghai Cooperation Organization (SCO) on issues like counterterrorism and regional security.
• Economic Opportunities: Despite political friction, trade between India and China reached $136 billion in 2023. Sectors such as pharmaceuticals, information technology, and renewable energy present promising areas for collaboration.

External Influences on India–China Relations

• US–China Trade Conflict: The trade war initiated by the Trump administration disrupted global supply chains, prompting both India and China to reassess their economic and strategic approaches. India prioritizes strategic autonomy, aiming to maintain balanced relations without exclusively siding with either the US or China.
• Multipolarity and BRICS Expansion: With the inclusion of new members like Saudi Arabia and Egypt, BRICS is evolving into an influential bloc where India and China play critical roles in shaping alternative financial institutions such as the New Development Bank.
• Leadership of the Global South: Both nations project themselves as champions of developing countries, using joint platforms to enhance their bargaining power in climate negotiations, trade reforms, and technology governance.

Strategic Dimensions

• Geopolitical Competition: India aligns with the Quad (US, Japan, Australia) to ensure security in the Indo-Pacific, which China views with suspicion. China’s growing presence in the Indian Ocean through ports in Sri Lanka, Pakistan, and Myanmar challenges India’s maritime dominance.
• Border Management: Several agreements (1993, 1996, 2005, 2013) have aimed to maintain peace along the LAC, but incidents like the Doklam standoff (2017) and the Galwan clash (2020) highlight their fragility.
• Economic Strategy: Post-2020, India has restricted Chinese investments in sensitive sectors and banned certain apps on security grounds. However, India continues to rely on China for critical imports such as active pharmaceutical ingredients (APIs), electronics, and solar energy components.

Path Forward

• Maintaining Strategic Autonomy: India should sustain a balanced approach, avoiding forced alignment with either the US or China.
• Confidence-Building Measures (CBMs): Strengthen communication and disengagement mechanisms along the LAC. Revive annual leadership summits to foster dialogue and mutual understanding.
• Economic Rebalancing: Encourage self-reliance initiatives like Atmanirbhar Bharat while selectively promoting cooperation in green energy, digital technologies, and healthcare supply chains.
• Strengthening Multilateralism: Leverage platforms such as BRICS, SCO, and G20 to advocate for reforms in global financial and trade institutions.
• Enhancing People-to-People Ties: Reinvigorate cultural exchanges, educational partnerships, and tourism to rebuild trust at the societal level.

Conclusion

India-China relations are a nuanced blend of rivalry and cooperation shaped by historical legacies, geographic realities, and evolving global geopolitics. The recent cordiality in Tianjin, while largely symbolic, underscores a shared understanding that persistent confrontation is unsustainable. As US-China tensions escalate, both India and China must pursue pragmatic engagement to protect their national interests and contribute to a more balanced, multipolar world order.