Chinese President Xi Jinping visited India this weekend for the BRIC (Brazil, Russia, India, China) summit in New Delhi this weekend, marking his first trip to India in seven years. Xi met with Indian Prime Minister Narendra Modi as both governments attempt to rebuild a relationship badly damaged by their deadly Himalayan border confrontation in 2020.

Xi Jinping and Narendra Modi have used previous summit meetings to manage their countries’ difficult relationship: India-China relations deteriorated dramatically after fighting in the Galwan Valley in June 2020 killed at least 20 Indian soldiers and an undisclosed number of Chinese troops. Thousands of troops subsequently faced one another along the disputed Line of Actual Control.

Xi’s visit to India can been seen as an important test of whether Asia’s two largest powers can move from military confrontation towards a more cooperative existence. Relations have gradually improved since 2024, however, with renewed border patrol arrangements, diplomatic meetings, restored direct flights and the resumption of some border trade.

Just before Xi’s visit, the countries also held their first Corps Commander-level talks in the eastern sector of their disputed frontier, another indication that both governments want to reduce the danger of another armed confrontation…

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The economic relationship gives both sides additional reasons to stabilize relations. China remains one of India’s largest trading partners. Bilateral goods trade reached about $151.1 billion in India’s 2025–26 financial year, up more than 18 percent from the previous year. Yet the relationship is enormously unbalanced: India imported about $131.6 billion from China while exporting only $19.5 billion, producing a record Indian trade deficit of approximately $112.2 billion. Chinese machinery, electronics, components, batteries, and industrial equipment are important to Indian manufacturing, even as New Delhi tries to reduce excessive dependence on China.

Xi’s visit could produce progress on investment restrictions, visas, technology transfers, trade barriers, and access for Indian products to the Chinese market. India continues to restrict Chinese investment in sensitive industries, while Chinese companies remain cautious about expanding in India. Security concerns, the unresolved border, and China’s extremely close relationship with Pakistan continue to generate deep mistrust. Reuters reports that economic engagement remains constrained by regulatory barriers and suspicion despite the broader diplomatic thaw.

Together India and China account for roughly 2.8 billion people, possess nuclear weapons, maintain enormous militaries, and represent two of the most important economies in the emerging world order. Their relationship influences everything from Himalayan security and Indian Ocean shipping to global manufacturing, technology, and climate policies.

Improved relations between India and China could alter the geopolitics of Asia. Washington has spent years strengthening ties with India through defense cooperation and the Quad partnership involving the United States, India, Japan, and Australia, partly because all four countries have concerns about China’s growing power.

Beijing consequently has an incentive to prevent India from becoming permanently aligned with an anti-China coalition. A warmer relationship with Beijing could give New Delhi greater freedom to pursue its traditional strategy of strategic autonomy, cooperating with the United States, China, Russia, and other powers without becoming completely dependent on any one of them.

India is undergoing a period of rapid change designed to improve and modernize its economy, and while leaders in New Delhi see closer ties to the U.S. as an important asset for that endeavor, China is much closer and potentially offers India even more in terms of access to economic and technological advancement.

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