Economy

Modi’s China visit 7 years after Galwan Valley clash signals thaw in relations

India remains committed to working with the SCO members to address shared challenges and deepen regional co-operation

India remains committed to working with the SCO members to address shared challenges and deepen regional co-operation

Prime Minister Narendra Modi will be in China this weekend, his first visit in seven years after the Galwan Valley clashes, on the invitation of Chinese President Xi Jinping to attend the Shanghai Cooperation Organisation (SCO) Summit.

Modi is scheduled to hold meetings with both Xi and Russian President Vladimir Putin during his China visit, even as the relationship of all three countries is deteriorating with the US.

“India remains committed to working with the SCO members to address shared challenges and deepen regional co-operation. I also look forward to meeting President Xi Jinping, President Putin and other leaders on the sidelines of the Summit,” Modi said in his departure statement on Thursday.

China has been recently showing signs of warming up to India, as demonstrated by its promise earlier this month to address New Delhi’s key concerns related to supply of fertilizers, rare earths and tunnel boring machines,

“Chinese Foreign Minister Wang Yi has assured External Affairs Minister S Jaishankar that China is addressing India’s needs of fertilizers, rare earths and tunnel boring machines,” a government official had told businessline.

Rebuilding ties

Wang’s visit to India was largely seen as part of ongoing efforts by the two neighbours to rebuild their relationship after it came under severe strain following the deadly Galwan Valley clashes in 2020.

With US President Donald Trump deciding to impose steep tariffs of 50 per cent on Indian imports and 30 per cent on Chinese imports, it could provide common ground for both countries to collaborate more closely.

The SCO Summit is also a good opportunity for Modi to engage with Putin in the backdrop of the US putting pressure on India to stop purchasing Russian oil.

Trump doubled tariffs on India to 50 per cent on August 27 as penalty for continued purchase of oil from Russia and accused it of fuelling Russia’s war on Ukraine.

“India may try to find out to what extent Russia is ready to support New Delhi as its exports to the US suffer due to Trump’s tariffs. india wants to export more to Russia. One has to see if that happens,” a source tracking the matter told businessline.

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Exports of APEDA-monitored products stood at $28.5 billion in FY 025 and 6 per cent of these went to the US.
V. Anantha Nageswaran, Chief Economic Advisor

Published on August 29, 2025

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