Mediapersons view a digital screen showing Chinese President Xi Jinping (right) meeting Indian Prime Minister Narendra Modi (left) during the 18th BRICS Summit at Bharat Mandapam in New Delhi on September 12, 2026.
Arun Sankar | AFP | Getty Images
Indian Prime Minister Narendra Modi said Saturday that maintaining “peace and tranquility” along the border is vital to strengthening relations with neighboring China.
Relations between the two countries deteriorated sharply after a deadly border clash in 2020. But ties have been gradually improving for more than a year, paving the way for Chinese President Xi Jinping’s first visit to India in seven years.
At a bilateral meeting on the sidelines of the BRICS Summit, Modi and Xi pledged to pursue a “fair, reasonable, and mutually acceptable” solution to their border disputes, according to a statement from the Indian government.
The leaders also agreed to take a “strategic and long-term perspective” on bilateral relations and ensure that differences do not escalate into disputes.
Long-running territorial disagreements and a trade relationship heavily tilted in China’s favor remain key sources of tension between the neighboring countries.
The border dispute dates back decades and contributed to the 1962 war between India and China. Last month, however, the two sides held their 25th round of talks, producing eight points of agreement and consensus aimed at resolving their longstanding differences.
Economic concerns have added to the friction, with India running a substantial trade deficit and relying heavily on imports from the world’s second-largest economy.
China is India’s largest trading partner, with bilateral trade reaching a record $151.1 billion in the year ended March 2026. India’s trade deficit with China also climbed to a record $112.16 billion, up from $99.21 billion.
According to the meeting’s readout, Modi and Xi agreed to address concerns over the structural trade imbalance, supply-chain challenges and the need for more predictable market access.
India-China relations have improved since Modi and Xi met in Tianjin last year. Direct flights between the countries have resumed, several former Silk Road trade routes have reopened, and India eased restrictions on investment from Beijing in March.
