Prime Minister Narendra Modi and Chinese President Xi Jinping are meeting on the sidelines of the 18th Brics summit in New Delhi. The meeting is important because it comes after years of tension between India and China.

Why in the News?

  • Prime Minister Narendra Modi is scheduled to meet Chinese President Xi Jinping on 12 September 2026 in New Delhi.
  • The meeting comes amid efforts to improve India–China economic and people-to-people relations, while border tensions remain unresolved.
  • Xi’s visit is significant as it will be his first visit to New Delhi since 2014.
    • He had earlier visited Goa in 2016 for the BRICS Summit.
    • He also visited Mamallapuram for an informal India–China summit.
  • Neither leader has made a bilateral visit to the other country since 2020.

Is This an India–China “Reset”?

  • It may be premature to describe the meeting as a complete “reset”.
  • The immediate objective is likely to achieve stabilisation and gradual normalisation.
  • India wants to move from occasional summit-level engagement towards a steady and sustained dialogue.
  • Stabilisation is required on both:
    • Military and political issues
    • Economic relations

Major Issues on the Agenda

1. Border Tensions and Arunachal Pradesh

  • The LAC remains the most important strategic concern.
  • In October 2024, India and China announced disengagement from the reported friction points.
  • Subsequently, agreements were reached on patrolling arrangements in several sectors, with buffer zones maintained in some areas.
  • However, tensions have recently shifted attention towards the Eastern Sector, particularly Arunachal Pradesh.

Tasking Area

  • Taksing is a remote border area in Upper Subansiri district of Arunachal Pradesh, near the India–China LAC.
  • Reports indicate that Indian Army and PLA forces remain deployed at forward positions around Taksing.
  • PLA forces have reportedly established positions at higher elevations.
  • India has increased patrolling after a brief confrontation in July 2026.
  • India is concerned about possible attempts to alter the existing status quo.

Expected Indian Position

India is likely to stress that:

  • Peace and tranquillity along the border are essential for normal bilateral relations.
  • Any attempt to change the status quo should be avoided.
  • Border stabilisation should precede broader normalisation.

2. Strengthening Border Management

  • India and China have recently increased military-level communication.
  • Two Corps Commander-level meetings were held in the Eastern Sector shortly before the summit.
  • This followed:
    • NSA Ajit Doval’s visit to Beijing
    • Special Representatives' talks with Chinese Foreign Minister Wang Yi.

Border Personnel Meeting Points

  • Both sides have agreed to increase Border Personnel Meeting (BPM) points beyond the existing five.
  • Such mechanisms are important for:
    • Direct communication between local commanders.
    • Preventing misunderstandings.
    • Managing incidents along the LAC.
    • Reducing escalation risks.

3. Boundary Settlement

  • India and China are also discussing the broader boundary question through the Special Representatives' mechanism.
  • The process involves:
    • Delimitation → deciding the boundaries.
    • Delineation → marking them on maps.
    • Demarcation → physically marking them on the ground.
  • A fundamental difficulty is that the two countries do not have an agreed common definition of the LAC.

Key Distinction

  • LAC management → maintaining peace along the existing line.
  • Boundary settlement → permanently resolving the territorial dispute.

4. Transboundary Rivers

  • River-water cooperation has gained importance following recent Himalayan disasters.
  • Flash floods associated with glacial collapse near the China–Nepal border have highlighted risks from upstream events.
  • Experts have called for:
    • Greater hydrological data sharing.
    • Timely disaster warnings.
    • Better information about upstream developments.
    • Greater scrutiny of dams and river-water management.
  • Since Himalayan rivers cross national boundaries, upstream activities can have significant downstream consequences for India.

5. Trade and Trade Deficit

  • Bilateral trade has increased substantially since 2014.
Indicator2014Recent
India–China trade~$70 bn~$150 bn
India's trade deficit~$38 bn~$113 bn
  • Thus, India's trade with China has more than doubled, but the trade deficit has nearly trebled.
  • India is seeking:
    • Greater access to the Chinese market.
    • Increased Indian exports.
    • More balanced trade.
    • Greater economic reciprocity.

6. Chinese export control

  • China's restrictions on exports of strategic products have become an important concern for India.
  • Recent restrictions have affected areas such as:
    • Critical minerals
    • Heavy infrastructure equipment
  • Such measures can create:
    • Supply-chain uncertainty.
    • Higher costs for Indian industries.
    • Strategic dependence on Chinese inputs.

7. Chinese Investment and FDI

  • India introduced tighter scrutiny of Chinese FDI after the 2020 border crisis.
  • Some restrictions have subsequently been eased.
  • China continues to complain about what it considers discriminatory treatment of Chinese businesses in India.
  • India, meanwhile, remains concerned about:
    • National security.
    • Strategic technologies.
    • Control over sensitive sectors.

Recent Example

  • The Serious Frauds Investigation Office (SFIO) recommended an investigation involving Chinese telecom company Xiaomi.
  • China responded by seeking a fair, transparent and non-discriminatory business environment.

8. People-to-People Relations

  • Restoring people-to-people contacts is another important part of normalisation.
  • Areas include:
    • Visa facilitation
    • Tourism
    • Business travel
    • Academic exchanges
    • Cultural contacts
  • Greater mobility can help rebuild trust and connectivity between the two societies.

India’s Broader Approach

India is likely to favour managed competition and reciprocal engagement, rather than expecting immediate strategic convergence.

Key priorities:

  • Border peace and stability
  • Reduction of the trade deficit
  • Better market access for Indian companies
  • Greater predictability in Chinese exports
  • Fair investment conditions
  • Improved visa and people-to-people connectivity
  • Greater cooperation on transboundary rivers

Challenges

  • Unresolved boundary dispute
  • Trust deficit after the 2020 crisis
  • Continued military deployment along sensitive areas
  • Arunachal Pradesh tensions
  • Growing trade imbalance
  • Chinese restrictions on strategic exports
  • Differences over investment and market access
  • Wider geopolitical competition

Way Forward

  • Maintain border peace
  • Institutionalise dialogue
  • Continue boundary negotiations
  • Ensure economic reciprocity
  • Diversify supply chains
  • Strengthen river cooperation
  • Restore people-to-people contacts

Conclusion

India–China relations are in focus as Prime Minister Narendra Modi and Chinese President Xi Jinping are expected to meet during the 18th BRICS Summit in New Delhi in September 2026. The meeting is significant as both countries have been working to improve relations after tensions along the Line of Actual Control (LAC), particularly following the 2020 Galwan Valley clash. The two sides have taken steps towards reducing border tensions and restoring regular diplomatic engagement. The meeting is expected to focus on border peace and stability, trade, investment, connectivity and people-to-people relations. India is also concerned about the trade imbalance and China’s close strategic relationship with Pakistan. At the same time, both countries remain important members of platforms such as BRICS and the SCO. The meeting reflects India’s approach of maintaining dialogue with China while protecting its national security and strategic interests. It is important for regional stability and India’s wider foreign policy.