INDIA CHINA RELATIONS IMPROVING
In January 2025, India and China took major steps to improve their relations, 3 months after resolving the military stand-off at the Line of Actual Control (LAC).
- These steps include resuming direct flights, issuing visas, increasing exchanges in various sectors, and restarting the Mansarovar Yatra for Indian pilgrims.
- Both countries also agreed to restart talks on shared rivers and the sharing of hydrological data, which China had not been providing.
- These measures are part of a larger effort to stabilize and rebuild ties between the two countries.
KEY AGREEMENTS AND DISCUSSIONS
Resumption of Direct Flights and Visa Issuance:
- Direct Flights: India and China agreed to restart direct flights, which had been stopped in 2020 due to the COVID-19 pandemic and rising tensions at the LAC.
- Visa Issuance: The countries will begin issuing visas again, allowing easier travel for business, tourism, and study between the two nations. This move is seen as a step toward improving the relationship.
Mansarovar Pilgrimage:
- Mansarovar Yatra: The pilgrimage to Mount Kailash and Mansarovar, which had been stopped since the border tensions in 2020, will restart in the summer of 2025.
- Implications: Restarting this pilgrimage is an important symbolic and practical step toward improving relations, showing both governments’ recognition of its cultural significance.
Trans-Border Rivers and Hydrological Data:
- Hydrological Data Sharing: A key agreement is the restart of talks on shared rivers, especially concerning the sharing of water data.
- China had stopped sharing this data, particularly for the Brahmaputra River (known as Yarlung Zangpo in Tibet), which is important for water management in India.
- Expert-Level Mechanism: The India-China Expert Level Mechanism will meet to discuss the return of hydrological data and other cooperation related to shared water resources.
- Brahmaputra River Concerns: India has expressed worry about China’s hydropower projects on the Brahmaputra, which could affect water flow into India.
BILATERAL RELATIONS AND CELEBRATORY EVENTS
- 75th Anniversary of Diplomatic Ties: 2025 marks the 75th year of diplomatic relations between India and China.
- Both countries plan to celebrate this anniversary with events to strengthen cultural and economic ties.
- Foreign Minister’s Remarks: Chinese Foreign Minister Wang Yi called for an end to mutual distrust and separation, stressing the need for both countries to focus on cooperation instead of conflict.
- Government Commitment: Both sides pledged to work on stabilizing relations, aiming to find mutual benefits and avoid further disputes.
ECONOMIC & TRADE RELATIONS
Trade and Economic Disputes:
- Despite record levels of trade, India and China have imposed restrictions on each other due to political tensions that began after 2020.
- India’s Restrictions: India put several restrictions on Chinese businesses, such as requiring Home Ministry approval for Chinese investments (as a security measure), denying business visas, and carrying out raids on Chinese telecom companies.
- China’s Restrictions: China responded by limiting exports of key materials to India, like Active Pharmaceutical Ingredients (APIs), high-tech products, and equipment for major infrastructure projects (e.g., Tunnel Boring Machines).
- Trade Imbalance: China remains one of India’s biggest trade partners, but India has expressed concerns over the growing trade deficit and the lack of fair opportunities for Indian businesses in China.
DIPLOMATIC ENGAGEMENTS
Foreign Secretary’s Visit to China:
- Vikram Misri’s Visit: Indian Foreign Secretary Vikram Misri visited Beijing from January 26-27, 2025, for talks with Chinese officials, including Vice Foreign Minister Sun Weidong, Foreign Minister Wang Yi, and Liu Jianchao (Member of the Chinese Communist Party’s Central Committee).
- Resumption of Bilateral Dialogue: Misri’s visit marked the return of regular dialogues between the two sides, which had been suspended after the 2020 Galwan clashes.
- India’s Support for China’s SCO Chairmanship: During his visit, Misri showed India’s support for China’s leadership of the Shanghai Cooperation Organisation (SCO) in 2025, highlighting the importance of cooperation in multilateral organizations.
FUTURE ENGAGEMENTS
- Modi-Xi Summit Possibility: Officials did not comment on whether an informal summit between Indian Prime Minister Narendra Modi and Chinese President Xi Jinping will happen in 2025, similar to previous meetings in Wuhan (2018) and Mamallapuram (2020). However, the return of regular dialogues suggests more high-level interactions could take place.
- SCO Summit in June 2025: Prime Minister Modi is expected to attend the SCO summit in June 2025, which will provide another opportunity to strengthen ties between the two countries.
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