Modi’s visit, his first to mainland China in seven years, unfolded amid a fraught global trade environment marked by aggressive U. S. tariffs. The bilateral dialogue prioritised resumption of direct flights, lifting of export restrictions on key Chinese goods, revival of the Kailash-Mansarovar pilgrimage, and improved visa access—all seen as tangible indicators of a thaw in relations.
Discussion also centred on border management, with Modi emphasising that peace and tranquillity along the Himalayan frontier are essential for smooth progress in bilateral cooperation. Both leaders acknowledged that last year’s disengagement efforts had created a calmer border environment—a key precondition for economic and diplomatic normalisation.
Beyond bilateral matters, Modi and Xi reiterated their view that India and China should see themselves as development partners, not adversaries, united in their shared responsibility to foster regional stability amid global uncertainty. Modi stressed the importance of strategic autonomy, noting that ties should not be shaped by external pressures—an unspoken reference to Western tariff policies.
Yet, persistent structural challenges shadow the revival. India’s trade deficit with China remains significant, with New Delhi consistently seeking more balanced economic engagement. Water security concerns, particularly around large-scale dam projects in Tibet, continue to provoke long-term apprehension. India’s call for transparency over transboundary river usage, especially regarding hydropower developments, remains unresolved.
Security dynamics also remain unresolved. Modi raised cross-border terrorism as a shared concern during talks, receiving assurances of China’s understanding and cooperation. But broader strategic mistrust still lingers—stemming from China’s ties to Pakistan and its strategic assertiveness in the region.