Prime Minister Narendra Modi has emphasized the importance of India and China coming together to bring stability to the global economic order, particularly in the face of the volatility created by US President Donald Trump’s tariff measures. In an interview with the Japanese daily Yomiuri Shimbun, PM Modi pointed out that as the two largest economies in Asia, India and China must work in harmony to ensure both regional peace and global economic stability.
PM Modi’s comments come just a day before his planned meeting with Chinese President Xi Jinping in China on August 31, 2025, ahead of the Shanghai Cooperation Organisation (SCO) Summit in Tianjin. The SCO summit is expected to provide a crucial platform for discussions on bilateral relations, regional stability, and global economic cooperation between the two nations.
PM Modi highlighted that since his previous meeting with Xi Jinping in Kazan, there has been “steady and positive progress” in India-China relations, a sign of improvement in ties that have been historically fraught with challenges. Modi called for stable, predictable, and friendly relations between the two nations, asserting that such relations are not only essential for the two countries but also critical for the wider Asian region and the global community.
India and China have faced numerous challenges in their relationship, particularly border tensions and trade disputes. Following the Galwan clashes and strained diplomatic relations, both countries have been striving to reset their ties, focusing on diplomatic engagement and economic cooperation. The disengagement of troops in contested areas along the Line of Actual Control (LAC) is a significant step in easing tensions. In addition, China has eased curbs on key exports to India, signaling improved economic cooperation.
PM Modi also addressed the impact of the US tariffs on India and China. The US has imposed a 50% tariff on India, affecting trade, including a 25% levy on imports and an additional 25% on India’s oil trade with Russia. China has faced similar pressures, with the US imposing a 145% cumulative tariff on Chinese goods, impacting its economy. PM Modi emphasized the need for both India and China to collaborate on economic matters, ensuring a balanced and multi-polar world.
In his upcoming visit to China, PM Modi aims to continue discussions on economic cooperation, regional security, and global governance. The SCO Summit will provide a platform for in-depth discussions on key concerns, including the economic rise of Asia and global peace. Modi’s approach to fostering India-China relations is a reminder of the importance of dialogue, mutual respect, and pragmatism in international diplomacy.
With India and China both poised to play crucial roles in shaping the global economic future, PM Modi’s message underscores the importance of cooperation for long-term stability. As both countries advance their diplomatic relations and economic ties, the potential for a strong partnership could have significant ramifications for global peace and prosperity.
