Relations between the two countries soured sharply following the Galwan Valley clash in 2020, when troops were deployed on both sides of the fuzzy Himalayan border known as the Line of Actual Control, leaving soldiers from both countries dead.
In March 2022, during Chinese Foreign Minister Wang Yi's unannounced visit to India – the first by a senior Chinese official to do so since the Galwan clash – Wang said the border issue should have its “proper place” in bilateral relations and should not be allowed to “define or affect” the overall development of bilateral ties.
Wang struck a somewhat more conciliatory tone towards India, saying Beijing does not pursue a “unipolar Asia” and respects India's traditional role in the region, and is willing to explore “China-India plus” cooperation in South Asia. He also said the two countries should participate in multilateral organisations such as BRICS and the G20 with a “cooperative attitude”. More recently, at the ASEAN Foreign Ministers' Meeting in Vientiane, Laos last month, Jaishankar said maintaining stable bilateral relations “has special significance in maintaining regional peace and promoting multipolarity”. Wang said putting China-India relations back on the right track would meet the shared aspirations of the Southern Hemisphere. Despite the border dispute, Chinese President Xi Jinping and Indian Prime Minister Narendra Modi have enjoyed a largely friendly and constructive relationship. The two leaders have held 16 bilateral meetings since 2014, and have met multiple times on the sidelines of multilateral meetings. President Xi Jinping told Prime Minister Modi that the development ambitions of both countries were an opportunity, not a threat. Perhaps the most eye-catching diplomatic event between the two leaders was the “local diplomacy” after the two countries held informal summits at their own venues in their respective countries and agreed to make significant bilateral progress.
At their first informal summit in Wuhan, China in 2018, the two sides were able to reach agreement on long-term and strategic issues, including reforming global governance mechanisms, preserving multilateral trade institutions, ensuring safeguards against global financial and economic instability, and agreeing on each leader's respective vision for their nations' development.
Indian Prime Minister Narendra Modi and Chinese President Xi Jinping pose with dancers at the Hubei Provincial Museum in Wuhan, Hubei province, April 27, 2018. Photo: Reuters
At an informal summit in Chennai, India in 2019, President Xi and Prime Minister Modi reaffirmed the Wuhan Agreement and agreed to work toward closer partnership in joint development efforts. The two sides also expressed support for mutual learning and exchanges between the two “ancient civilizations.”
At the institutional level, China and India are members of various multilateral organisations such as the Russia-India-China Trilateral, BRICS, the Shanghai Cooperation Organisation and the G20.
The two countries are also involved in a number of major regional multilateral lending institutions. For example, India was the first co-founder of the Asian Infrastructure Investment Bank (AIIB), which was established by China in 2015. India is also the second-largest shareholder in the AIIB after China and has one member on its board of directors. In 2018, India hosted the bank's third annual meeting in Mumbai. As members of the BRICS group, China and India are also co-founders of the New Development Bank.
China and India are emerging as the new superpowers of the 21st century and also recognize the need to share common goals in their respective development paths.
A worker operates a machine at a solar power manufacturing facility in Sriperumbudur, India, on January 11. Photo: AFP
While the disputes between the two countries often grab international headlines, multiple ongoing but low-key dialogues have continued to move the two countries towards a more cooperative path.
Thirty rounds of talks have been held since the Galwan Valley clash. Bilateral military and diplomatic talks have resulted in a ceasefire at several friction points along the Line of Control, but more efforts are needed to achieve a complete and comprehensive settlement.
Although the border dispute between the two countries is a source of great animosity, China and India recognize that this century will be their century as the world gravitates economically, politically and culturally toward Asia. After all, neither Beijing nor India wants to jeopardize their respective destinies as great civilizations long overdue to reassert themselves as world leaders.
Bob Savic is a Senior Research Fellow at the Global Policy Institute, London, UK, and Visiting Professor in the School of International Relations at the University of Nottingham.
