India-China ties: from Galwan clash to a cautious thaw ahead of Modi-Xi talks
Modi and Xi will hold talks in New Delhi as ties recover from the 2020 Galwan clash, with trade improving but border and security concerns persisting.
Prime Minister Narendra Modi and Chinese President Xi Jinping are set to hold talks on Saturday on the sidelines of the BRICS summit in New Delhi, as the two Asian giants navigate a relationship that has moved from a deadly border clash towards a more stable footing. The meeting marks Xi's first visit to India in seven years.
The 2020 rupture
Relations plunged in 2020 after Indian and Chinese troops fought hand-to-hand in the Galwan Valley in Ladakh, in the western Himalayas. It was the first deadly military confrontation between the two countries since 1975. At least 20 Indian soldiers and four Chinese soldiers were killed. The fighting followed Indian troops setting fire to two tents and observation towers they said had been built on their side of the disputed border.
The two nuclear-armed neighbours share a roughly 3,800-km (2,400-mile) border in the Himalayas that is largely undemarcated and disputed.
Tit-for-tat responses
New Delhi responded by tightening scrutiny of Chinese investments, widening vetting of business visas for Chinese citizens, banning popular Chinese mobile apps and cutting direct passenger air links. Beijing said the consensus between the countries had been seriously violated and tightened curbs on people-to-people exchanges, including the travel of journalists and businesspeople.
Disengagement
The neighbours reached a disengagement pact in October 2024, by which point both had pulled back troops from five locations where they had been facing off. The pact also involved returning to the situation in 2020 by pulling back troops from the remaining two locations, a condition fulfilled by December that year.
Where ties stand now
Trade and business links have improved. New Delhi has resumed direct flights to China, cut red tape to speed approval of business visas for Chinese professionals, and eased curbs on buying Chinese equipment. China was India's largest source of imports in fiscal year 2025/26, worth $132 billion, including more than 100 products deemed critical to Indian factories. Along the frontier, however, both countries continue to maintain substantial military deployments.
Persistent friction
Intermittent tension on the frontier persists, and territorial disputes often flare over India's northeastern state of Arunachal Pradesh, which Beijing calls Zangnan and considers part of southern Tibet. China's role in India's military conflict last year with Pakistan has also complicated ties. Although Beijing was not directly involved, Pakistan relied heavily on Chinese-made fighter jets and missiles during the four-day fighting.
Trade ties remain fragile as well, with industry executives pointing to visa delays and bottlenecks in procuring Chinese equipment and components critical to areas such as electronics and infrastructure development. India is also wary of Chinese investment in industries it considers sensitive for national security, such as finance, defence and telecom.