India-China Relations: A Diplomatic Reset in Progress

 

The Art of Managing Asia's Most Complex Relationship

The meeting between India's External Affairs Minister S. Jaishankar and his Chinese counterpart Wang Yi in Beijing marks a significant diplomatic milestone—the first visit by an Indian Foreign Minister to China in five years. This encounter, occurring against the backdrop of the Shanghai Cooperation Organisation (SCO) foreign ministers' summit, represents more than just routine diplomatic protocol; it signals a calculated attempt to recalibrate one of Asia's most consequential yet complex bilateral relationships.

The Pragmatic Approach to Competition

In their discussions, both ministers acknowledged a fundamental reality that has long shaped Asia-Pacific geopolitics: competition between major powers is inevitable, but it need not spiral into destructive conflict. Jaishankar's emphasis that "differences between India and China should not become disputes" and that competition should not escalate into conflict reflects a mature understanding of how great powers can coexist while pursuing their respective national interests.

This pragmatic approach comes at a crucial juncture. The relationship between the world's two most populous nations has been strained since the 2020 Galwan Valley clash, which resulted in the first combat deaths along the India-China border in 45 years. The subsequent military standoff in Eastern Ladakh cast a long shadow over bilateral ties, with both sides maintaining tens of thousands of troops in the region.

Building on Diplomatic Progress

The current diplomatic engagement builds on nine months of steady progress following the meeting between Prime Minister Narendra Modi and President Xi Jinping in Kazan in October 2024. "India-China relationship is gradually moving in the positive direction since our leaders' meeting in Kazan last year," Jaishankar noted, indicating that the momentum from the highest political level is now being translated into working-level cooperation.

This progress is particularly significant given the depth of strategic mistrust that has characterized the relationship. Both nations harbor concerns about each other's rising influence in South Asia and the broader Indo-Pacific region. China's Belt and Road Initiative and India's growing partnerships with the United States, Japan, and Australia through initiatives like the Quad have created additional layers of strategic competition.

Economic Dimensions and Trade Considerations

A crucial aspect of the current diplomatic reset involves addressing economic ties, which have remained remarkably robust despite political tensions. The discussion about avoiding restrictive trade measures comes at a time when India-China trade continues to grow, with bilateral trade reaching record levels even as political relations remained strained.

However, the economic relationship is asymmetric, with India running a significant trade deficit with China. New Delhi has been seeking to diversify its supply chains and reduce dependence on Chinese imports, particularly in critical sectors like pharmaceuticals, electronics, and telecommunications. The commitment to avoid restrictive trade measures suggests both sides recognize the economic costs of allowing political tensions to completely derail commercial ties.

The Broader Strategic Context

The timing of this diplomatic engagement is noteworthy. Both India and China face complex external challenges that may incentivize cooperation or at least managed competition. China's relationship with the United States remains tense, while India continues to balance its strategic autonomy with deepening partnerships with Western nations.

Within the SCO framework, both nations have opportunities to collaborate on issues like counterterrorism, regional connectivity, and economic cooperation. The multilateral setting provides a face-saving mechanism for bilateral engagement while addressing shared regional challenges.

Managing the Border Question

While the current meeting focused on broader diplomatic themes, the unresolved boundary dispute remains the most significant impediment to normalized relations. The Line of Actual Control (LAC) stretches over 3,488 kilometers, with both sides maintaining different perceptions of where the boundary lies.

Recent diplomatic progress has led to some disengagement and de-escalation measures, but a comprehensive resolution remains elusive. Both sides appear to recognize that managing this dispute requires sustained diplomatic engagement rather than allowing it to define the entire relationship.

The Road Ahead

The positive trajectory that both ministers referenced reflects a shared understanding that neither country benefits from sustained confrontation. Both nations have ambitious domestic development agendas that require stable external environments. Additionally, global challenges like climate change, economic recovery, and regional stability demand cooperation between major powers.

However, significant challenges remain. Structural factors that drive competition—ranging from geopolitical influence to economic interests—will not disappear through diplomatic engagement alone. The key lies in developing mechanisms to manage these competitive dynamics while preventing them from escalating into open conflict.

Conclusion

The Jaishankar-Wang Yi meeting represents a cautious but important step toward stabilizing India-China relations. The emphasis on preventing differences from becoming disputes and competition from becoming conflict reflects a mature approach to great power relations in the 21st century.

Success will ultimately be measured not by the elimination of competition—which is neither possible nor necessarily desirable—but by the ability of both nations to compete responsibly while cooperating where interests align. The current diplomatic reset provides a foundation for this more nuanced approach, but its sustainability will depend on consistent implementation at multiple levels of government and society.

As both nations continue to rise as global powers, their ability to manage their relationship will have profound implications not just for Asia but for the broader international order. The current diplomatic engagement, while modest in scope, offers hope that the world's two most populous nations can find ways to coexist and even collaborate despite their differences.