India-China Relations and Economic Cooperation
Prime Minister and Chinese President discussed strengthening India-China economic and strategic ties amidst global trade tensions, especially the US trade war. Their meeting took place on the sidelines of the Shanghai Cooperation Organisation (SCO) Summit in Tianjin.
Key Agreements and Discussions
- Trade and Investment:
- Both leaders emphasized the need to stabilize world trade and reduce the trade deficit by adopting a political and strategic perspective.
- India highlighted the importance of transparency and predictability in trade policies.
- The trade deficit with China was a significant concern, with figures rising from $1.1 billion in 2003-04 to $99.2 billion in 2024-25.
- Peace and Stability:
- Maintaining peace at the border was described as essential for bilateral ties.
- Both nations agreed on the importance of not letting differences become disputes.
- Strategic Partnership:
- Chinese President proposed four steps: enhancing communication, expanding cooperation, accommodating mutual concerns, and strengthening multilateral cooperation.
- Both leaders stressed the necessity of viewing their relationship independently and not through the influence of third countries.
Global and Regional Influence
- SCO’s Role:
- The meeting underscored the SCO's growing responsibility in maintaining regional peace and stability.
- Prospects for Cooperation:
- They recognized opportunities in advancing commercial ties, leveraging the current global economic situation.
Conclusion
The leaders reiterated their commitment to a stable, cooperative, and mutually beneficial relationship, emphasizing dialogue and cooperation over conflict. This meeting sets the stage for stronger bilateral relations and contributes to regional and global stability.
