The View From India Newsletter: A reset in India-China ties?

Mr. Jindal
8 Min Read

(This article is part of the View From India newsletter curated by The Hindu’s foreign affairs experts. To get the newsletter in your inbox every Monday, subscribe here.)

“The setbacks we experienced in the past few years were not in the interest of the people of our two countries,” said Wang Yi, China’s Foreign Minister, on August 19, after meeting Prime Minister Narendra Modi on August 19. “We are heartened to see the stability that is now restored in the borders,” Mr. Wang added, summing up the core message of his two-day visit. The visit was significant for several reasons. Both sides showed a willingness to downplay the boundary dispute and take steps towards strengthening overall bilateral relations, which hit the lowest point in decades following the 2020 Galwan clashes. India and China also announced a slew of tangible measures to improve ties, including resuming border trade at three points, restarting direct flights, expanding Kailash Manasarovar slots for pilgrims and relaxing visas. India wants China to ease export restrictions on rare earths, fertilizers and some machinery, while Beijing wants New Delhi to relax the scrutiny of Chinese investments—such discussions, along with the boundary question, will continue. Another significant development is Prime Minister Modi’s upcoming visit to Tianjin to attend the Shanghai Cooperation Organisation (SCO) meeting, where he would meet Chinese President Xi Jinping.

What makes the rapprochement interesting is the larger foreign policy background in which it is unfolding. The India-U.S. relations are going through a rough phase due to the high tariffs U.S. President Donald Trump has imposed on India. The U.S. and India, after multiple rounds of talks, failed to reach a trade agreement, apparently because of differences in opening up India’s agricultural and dairy sectors. The Trump administration has imposed 25% tariffs on India after trade talks failed, and an additional 25%, which is expected to take effect this week, penalty tariffs over India’s energy ties with Russia. India believes the U.S. is singling out and attacking India over energy purchases from Russia, while China, the largest buyer of Russian oil, doesn’t face any penalty tariffs. The Trump disruptions in U.S.-India ties seem to have powered India’s pivot to the east, which was already in the works. On August 21, Chinese Ambassador in New Delhi Xu Feihong seemed to support India’s position against U.S. tariffs. China will “firmly stand” with India to uphold World Trade Organisation principles, said the ambassador. “The United States has long benefited greatly from free trade, but now it is using tariffs as a bargaining chip to demand exorbitant prices from various countries,” Mr. Xu added.

But a thaw in the relationship may not lead to a reset as there are still unresolved structural problems. After wrapping up his India visit, Mr. Wang left for Kabul where he met Afghan and Pakistani senior officials to discuss the extension of the China Pakistan Economic Corridor, which is part of President Xi’s Belt and Road Initiative, to Pakistan—India is opposed to both projects. From Kabul, Mr. Wang went to Islamabad where he met a host of Pakistani officials, including military chief Gen. Asim Munir. “China’s diplomatic support to Pakistan after the Pahalgam attacks and during Operation Sindoor did not come up during Mr. Wang’s visit, but provide an ominous overhang to ties, as did Ambassador Xu’s contention that Pakistan too is a victim of terrorism,” writes The Hindu in this editorial. “While the U.S.’s attack on Indian trade and economy may be spurring New Delhi’s efforts, the reset with China must not come from a perceived position of weakness, and the next steps must be taken keeping in focus the strategic challenge.”

Who is Wang Yi, the ‘silver fox’ of Chinese diplomacy? Read this profile of the Chinese Foreign Minister by Suhasini Haidar

Ranil under arrest

Sri Lanka’s former President Ranil Wickremesinghe is escorted by prison and police officials as he leaves the Magistrate’s Court in Colombo, Sri Lanka, August 22, 2025.

Sri Lanka’s former President Ranil Wickremesinghe is escorted by prison and police officials as he leaves the Magistrate’s Court in Colombo, Sri Lanka, August 22, 2025.

Sri Lanka’s former President and six-time Premier Ranil Wickremesinghe was on August 22 arrested on charges misusing state funds during his Presidency. The 76-year-old leader was remanded in custody until August 26, 2025, when the next hearing is due, reports Meera Srinivasan from Colombo. Sri Lanka’s former President and six-time Premier Ranil Wickremesinghe was on Friday (August 22, 2025) arrested on charges misusing state funds during his Presidency. The 76-year-old leader was remanded in custody until August 26, 2025, when the next hearing is due. The arrest triggered sharp responses from former Presidents and members of the political opposition. Addressing a media conference in Colombo on August 24, they accused the National People’s Power (NPP) government, led by President Anura Kumara Dissanayake, of pursuing “political revenge”, contending that the charges against Mr. Wickremesinghe did not warrant arrest.

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Published – August 25, 2025 04:34 pm IST

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