India and China Take Tentative Steps Toward Rebuilding Relations in 2025
- MGMMTeam
- Dec 31, 2025
- 4 min read
After more than four years of frozen engagement and military tension along the Line of Actual Control (LAC), India and China have begun a cautious process of rebuilding their bilateral relationship in 2025. While deep mistrust remains, recent diplomatic, political, and economic moves indicate a shared recognition that prolonged hostility between Asia’s two largest powers is neither sustainable nor desirable.
From Galwan to Gradual De-Escalation
The deterioration of India–China relations dates back to the June 2020 Galwan Valley clash, which resulted in casualties on both sides and fundamentally altered the trajectory of bilateral ties. What followed was an extended military standoff in eastern Ladakh, accompanied by curtailed diplomatic exchanges, suspension of direct flights, restrictions on visas, and heightened strategic competition.
By late 2024, however, sustained military and diplomatic negotiations led to limited disengagement arrangements in key friction points. Entering 2025, officials from both countries acknowledged that maintaining peace along the border was essential for any broader reset. Indian authorities repeatedly stressed that normalisation of ties depended on tranquillity at the LAC, a message that framed subsequent engagements throughout the year.
High-Level Diplomacy Signals a Thaw
A notable shift occurred with the resumption of high-level political dialogue. National Security Adviser Ajit Doval and Chinese Foreign Minister Wang Yi revived the special representatives’ mechanism on the boundary question, underscoring the importance both sides attach to strategic communication.
The most visible diplomatic signal came when Prime Minister Narendra Modi and President Xi Jinping met on the sidelines of the Shanghai Cooperation Organisation summit in Tianjin. Both leaders emphasised that India and China should see each other as development partners rather than rivals, agreeing that differences must not escalate into disputes. While the meeting produced no dramatic breakthroughs, its symbolism marked a clear departure from years of minimal top-level contact.
External Affairs Minister S. Jaishankar’s engagements with his Chinese counterpart further reflected an effort to stabilise ties without ignoring unresolved issues, particularly the border question.
Economic Engagement Continues Despite Strategic Caution
Even at the height of political tensions, trade between India and China remained substantial. In 2025, economic ties showed signs of cautious expansion, with India’s exports to China registering noticeable growth in the first half of the financial year. At the same time, the structural imbalance in bilateral trade persisted, reinforcing Indian concerns over excessive dependence on Chinese imports.
Discussions on reopening border trade routes and improving logistics connectivity gained momentum, suggesting an attempt to revive commercial confidence-building measures that had been suspended since 2020. Analysts note that a stabilised relationship could unlock cooperation in sectors such as pharmaceuticals, aviation, tourism, and supply-chain manufacturing, even as strategic competition continues in critical technologies.
Restoring People-to-People and Cultural Links
One of the clearest indicators of a gradual thaw has been the revival of people-to-people exchanges. The restoration of direct flights and China’s decision to fully resume visa services for Indian citizens after a prolonged pause marked an important step toward rebuilding trust at the societal level.
Cultural and academic exchanges, which had suffered during the years of confrontation, are also under discussion. Both sides have indicated interest in reviving institutional dialogue mechanisms that promote educational cooperation, tourism, and cultural interaction, recognising their role in softening perceptions hardened by geopolitical rivalry.
Persistent Challenges Beneath the Surface
Despite these positive developments, fundamental challenges remain unresolved. The boundary dispute continues to be the core source of mistrust, and India remains wary of China’s broader strategic posture in South Asia, particularly its close ties with Pakistan and expanding regional influence.
Within India, political and strategic debates reflect caution against premature normalisation. Policymakers emphasise that engagement must proceed without compromising national security interests or overlooking lessons from the past four years.
The MGMM Outlook
India and China’s tentative outreach in 2025 reflects a hard-nosed recognition that prolonged confrontation serves neither side’s long-term interests. After years of military standoff and diplomatic freeze following the Galwan clash, the renewed emphasis on border stability, high-level dialogue, and controlled engagement signals an effort to manage differences rather than resolve them outright. Meetings between top leaders and the revival of institutional mechanisms indicate that communication channels are being restored deliberately, with India maintaining its consistent position that peace along the Line of Actual Control is non-negotiable for any meaningful normalisation. The engagement underway is cautious, calibrated, and shaped by the lessons of the past four years.
At the same time, economic and people-to-people interactions underline a parallel track of pragmatic cooperation. Trade has continued despite political tensions, and the gradual resumption of flights, visas, and exchanges suggests an attempt to rebuild confidence at the societal and commercial levels. Yet, deep structural concerns persist—from the unresolved boundary dispute to China’s broader regional strategy—which keep expectations restrained. The evolving relationship is therefore less about trust and more about stability, balancing engagement with vigilance as both countries seek coexistence amid strategic competition.
(Sources: Hindustan Times, LiveMint, The Economic Times)
Comments