Factbox: India-China ties move from border conflict to a cautious thaw
NEW DELHI, Sept 12 (Reuters) – Indian Prime Minister Narendra Modi and Chinese President Xi Jinping will hold talks on Saturday on the sidelines of the BRICS summit in New Delhi, a meeting that underscores how far the two nuclear-armed neighbors have moved since their deadliest border clash in decades—and how much distrust remains.
The encounter comes as Xi makes his first trip to India in seven years. For both governments, the priority is to keep a fragile thaw on track while protecting their core security and economic interests.
What happened in 2020?
Indian and Chinese troops fought hand-to-hand in the Galwan Valley in Ladakh, in the western Himalayas, in June 2020. It was their first deadly military confrontation since 1975. The clash erupted after Indian soldiers set fire to two tents and observation towers they said Chinese troops had built on the Indian side of the disputed border.
At least 20 Indian soldiers and four Chinese soldiers were killed. The two countries share a roughly 3,800-km (2,400-mile) border that is largely undemarcated and disputed.
How did the governments respond?
New Delhi tightened scrutiny of Chinese investment, expanded vetting of business visas for Chinese citizens, banned popular Chinese mobile apps and cut direct passenger flights. Beijing said the countries' consensus had been seriously violated and restricted people-to-people exchanges, including travel by journalists and businesspeople.
When did disengagement happen?
The neighbors reached a disengagement agreement in October 2024. By then, both sides had pulled troops back from five flashpoints where they had been locked in face-offs. The pact called for restoring the situation to what it was in 2020 by withdrawing from the remaining two locations—a step completed by December that year.
What is the situation now?
Trade and business ties have improved. India has resumed direct flights to China, reduced red tape to speed approval of business visas for Chinese professionals and eased restrictions on buying Chinese equipment. China remained India's largest source of imports in fiscal year 2025/26, with shipments worth $132 billion, including more than 100 products considered critical to Indian factories.
Yet along the frontier, both militaries still maintain substantial deployments. That gap between economic re-engagement and security vigilance explains why the thaw remains cautious rather than warm.
What tensions remain?
Intermittent friction persists along the contested frontier. Territorial disputes also flare over India's northeastern state of Arunachal Pradesh, which Beijing calls Zangnan and considers part of southern Tibet. China's role in India's military conflict last year with arch-rival Pakistan has further complicated ties. Beijing was not directly involved, but Pakistan relied heavily on Chinese-made fighter jets and missiles during the four-day fighting.
Trade links remain fragile. Industry executives cite visa delays and bottlenecks in procuring Chinese equipment and components vital to electronics and infrastructure development. India is also wary of Chinese investment in sectors it deems sensitive for national security, including finance, defense and telecom.
For now, the Modi-Xi talks are expected to focus on managing differences, preserving border calm and keeping economic channels open. Analysts say any breakthrough is likely to be incremental, with the relationship still vulnerable to incidents on the border or broader regional rivalries.
(Compiled by Sakshi Dayal; Editing by YP Rajesh and Kim Coghill)