Illustration: GT

Lately, there have been signs that tensions between India and China are easing. The foreign ministers of both countries have indicated willingness to push for resolving border disputes and improving overall China-India relations. There are also speculations that the Indian government is considering relaxing restrictions on Chinese investment. These developments have raised hopes for a positive trajectory in the relationship between the two countries.

Despite facing high tensions in the border area over the past years, China-India economic and trade relations continue to develop. In the fiscal year 2023-2024, trade between China and India totaled $118.4 billion, with China surpassing the US to become India's largest trading partner. After China-India political relations had reached their lowest point, the arrival of China's ambassador to India, Xu Feihong, in May 2024, after 18-month vacancy in this post, marked a turning point. In addition, the foreign ministers of China and India held two meetings in July 2024, where they emphasized the need to step up talks to resolve disputes along their border. Moreover, there is a noticeable trend toward the resumption of China-India people-to-people exchanges. Scholars from both countries have resumed exchanges, and the Indian government had launched an online portal to expedite visa processing for Chinese technicians. 

Although the improvement in China-India relations has come later than expected, it has finally arrived. This is largely due to the mutual need for both sides to enhance their relationship. Improving China-India relations can simultaneously enhance the international environment for both China and India, and strengthen their international discourse power. The standoff in the border area between China and India has lasted for years, with high military costs that have hindered India's ability to modernize its military. Additionally, India's main focus is on economic development. This requires India to ease relations with China.

China and India are each other's largest neighbors. If China-India relations do not get better, the surrounding diplomatic environment for both countries will be difficult to improve. In the 21st century, major countries are maximizing their national interests and enhancing their international status in ways that differ from the past. Instead of relying on traditional political and military power to influence or gain advantages, countries are now using strategies related to trade, financial strength, and soft power. This shift has created a new dynamic of mutual dependence and competition, offering the potential for both peaceful coexistence and healthy competition between China and India. The disputes between China and India do not represent the primary contradictions in today's world, nor are they the most critical or pressing issues requiring resolution. Emotional factors often overshadow rational diplomatic analysis, yet there are ample space for potential reconciliation. 

With India's growing influence, the country has a heightened emphasis on national identity and strategic independence, underscoring the divergences between India and Western countries. The outcome of the 2024 Indian elections shows that these principles - embracing a variety of cultures and religions while maintaining a separation between religion and state - remain fundamental to India's identity and governance. China, on the other hand, is adjusting its foreign policy, shifting toward more practical and balanced approaches. These shifts create a conducive atmosphere for enhancing China-India relations within their respective domestic contexts.

It might be challenging for China and India to quickly improve their relationship or even return to the way things were five years ago. However, it is essential for both countries to adapt and establish a new strategic stance that fits the current global context. 

China and India have emerged as major global powers, with increasing areas of strategic convergence. Both countries need to create a new kind of relationship that reflects their status as major powers. At the same time, they should ensure that their partnership remains autonomous and not influenced by external factors. Both countries should welcome and support each other's presence in their respective neighboring regions, fostering a positive and constructive China-India relationship.

The author is director of the Center for South Asian Studies at Fudan University. [email protected]