INDIA CHINA RELATIONS: BILATERAL RESET from Vajirao & Reddy Institute

INDIA CHINA RELATIONS: BILATERAL RESET

• On August 18–19, 2025, Chinese Foreign Minister Wang Yi visited New Delhi to hold bilateral talks with External Affairs Minister S. Jaishankar and National Security Advisor Ajit Doval.
• The discussions focused on:
  • De-escalation at the Line of Actual Control (LAC)
  • Improving bilateral ties and trad
• This marks the first high-level visit since the October 2024 meeting between PM Modi and President Xi Jinping in Kazan, where both sides agreed to work towards normalising relations after years of military tensions.
• The visit aimed to push forward the stalled de-escalation process along the Line of Actual Control (LAC) and review overall bilateral ties.
• Preparations are also underway for PM Modi’s upcoming visit to China for the SCO Summit in Tianjin (August 31–September 1, 2025).

• April–May 2020: PLA incursions in Eastern Ladakh began.
• June 15, 2020: Galwan Valley clash – 20 Indian soldiers martyred; significant loss on Chinese side too (undisclosed).
• Led to the worst diplomatic and military crisis since the 1962 war.
• Multiple rounds of diplomatic, military, and Special Representatives’ talks have occurred since, but full disengagement remains incomplete.

• India and China “have seen a difficult period” but “now seek to move ahead”.
• Called for a “candid and constructive approach”, guided by the Three Mutuals:
  • Mutual Respect
  • Mutual Sensitivity
  • Mutual Interest

• Reiterated that:
  • “Differences must not become disputes”
  • “Competition must not become conflict”

• “Peace and tranquillity at the border is the basis for any positive momentum.”
• Asserted that the de-escalation process at the LAC must move forward.
• Urged joint responsibility in maintaining border stability.

• Jaishankar brought up “particular concerns” from his July 2025 Beijing visit, including:
  • Restrictive trade practices by China
  • Export curbs on rare earth elements and fertilisers
    • Note: Rare earths are vital for EVs, electronics, defense, and semiconductors.
    • China controls over 85% of global rare earth processing.

• India reaffirmed its commitment to:
  • A fair, balanced, and multipolar world
  • A multipolar Asia
  • Reformed multilateralism in global institutions
• Emphasized stability in global economy and fighting all forms of terrorism.

• India-China relations have gained “shared confidence”.
• Highlighted:
  • Efforts to “dispel interference”
  • Desire to “expand cooperation” and “consolidate momentum”
• Asserted that:

• Blamed “rampant unilateralism” and disruption of free trade — indirectly referencing U.S. global policies (particularly under the Trump administration).
• Called for both countries to promote:
  • Dignity for developing nations
  • Global South unity
  • Dialogue over confrontation
• Also China has made an in-principle commitment to address India’s requirements for:
  • Rare earth elements (REEs)
  • Fertilisers
  • Tunnel-boring machines

• Rare Earths: Group of 17 metals with crucial applications in:
  • Electronics
  • Green energy (e.g. wind turbines, EVs)
  • Defence (missiles, radars)
  • Medical tech
  • Telecommunications

• India’s REE status:
  • India imports REEs worth ~$33 million annually (SBI Report).
  • 30 minerals identified as critical to India’s economic security.
• Challenges in imports from China:
  • No outright ban, but stringent export controls & licensing.
  • Supply chain disruptions for Indian sectors:
    • Transport equipment
    • Basic metals
    • Electrical & electronics
    • Construction
    • Machinery

• US under President Trump (2.0) has:
  • Imposed 50% tariffs on Indian goods.
  • Penalised India for importing Russian oil (25% tariff).
• In contrast, China imports more Russian oil, but faces no such sanctions.

• Trump announced rare-earth cooperation with China:
  • Full supply of rare earths and magnets.
  • Visa access for Chinese students to US institutions.
• Raises questions about US reliability as a trade partner for India.

• Urges India to counter “unilateral bullying” (hint at US).
• Advocates for multipolarity and South-South cooperation.
• Signals interest in resetting bilateral ties with India via economic cooperation.

• 24th Round of Talks between:
  • Indian NSA Ajit Doval
  • Chinese Foreign Minister Wang Yi
• Agenda:
  • Border delimitation & demarcation
  • Military disengagement
  • Confidence-Building Measures (CBMs)
  • Cross-border exchange frameworks