NEW DELHI (AP) — Indian Prime Minister Narendra Modi will convene with China’s foremost diplomat on Tuesday, signaling a reduction in tensions between the nuclear-armed neighbors following an extended standoff between the Asian powers.

Chinese Foreign Minister Wang Yi, who arrived in India on Monday, is slated to engage in discussions with Modi and other officials, including National Security Adviser Ajit Doval, regarding the disputed Himalayan border. Agenda items are likely to include troop reduction along the border and the partial resumption of trade there.

This rapprochement occurs alongside tensions between New Delhi and Washington after U.S. President Donald Trump enforced significant tariffs on India, a traditional ally considered a counterweight to China’s influence in Asia. India is also a member of the Quad security alliance with the U.S., Australia, and Japan.

‘Compromise at the highest political level’

The longstanding border dispute between India and China intensified in 2020 after a deadly encounter in the Ladakh region. The deterioration in relations impacted trade, diplomacy, and air travel, as both nations deployed thousands of security troops in border regions.

Some progress has been made since then.

Last year, India and China struck an agreement concerning border patrols and withdrew additional forces from some border locations. Both countries are continuing to strengthen their border infrastructure through the construction of roads and rail networks.

Recently, the nations have amplified official visits and discussed relaxing certain trade restrictions, in addition to facilitating the movement of citizens and business visas. In June, China permitted pilgrims from India to travel to holy sites in Tibet. Both sides are endeavoring to reestablish direct flight connections.

Last week, the spokesman for India’s foreign ministry, Randhir Jaiswal, said India and China were in discussions to restart trade through three points along their 3,488-kilometer (2,167-mile) border.

Manoj Joshi, a fellow at the Observer Research Foundation, a New Delhi-based think tank, said relations are still at an uneasy level of normalization.

“Settling the boundary issue between the two countries requires political compromise at the highest political level,” said Joshi, who also served as a member of the advisory board for India’s National Security Council. He asserted that the countries are “still talking past each other when it comes to the border dispute and issues surrounding it.”

On Monday, China’s Foreign Ministry spokesperson Mao Ning said Beijing is willing to take Wang’s India visit as an opportunity to work with the Indian side to “properly handle differences and promote the sustained, sound and stable development of China-India relations.”

Mao said Wang’s meeting with Modi’s national security adviser will “continue in-depth communication to jointly safeguard peace and tranquility in the border areas.”

Modi plans to visit China soon

The thaw between Beijing and New Delhi began last October when Modi and Chinese President Xi Jinping met at a summit of emerging economies in Russia. It was the first time the leaders had spoken in person since 2019.

Modi is set to met Xi when he travels to China late this month — his first visit in seven years — to attend the summit of the Shanghai Cooperation Organization, a regional grouping formed by China, Russia and others to counter U.S. influence in Asia.

Earlier this year, Xi called for India and China’s relations to take the form of a “dragon-elephant tango” — a dance between the emblematic animals of the countries.

Last month, India’s external affairs minister visited Beijing in his first trip to China since 2020.

The U.S. and Pakistan play roles in the thaw

The renewed engagement comes as New Delhi’s ties with Trump are fraying. Washington has imposed a 50% tariff on Indian goods, which includes a penalty of 25% for purchasing Russian crude oil. The tariffs take effect Aug. 27.

India has shown no sign of backing down, instead signing more agreements with Russia to deepen economic cooperation.

Trump’s renewed engagement with India’s arch rival, Pakistan, has also encouraged New Delhi’s overtures to China, said Lt. Gen. D.S. Hooda, who led Indian military’s Northern Command from 2014 to 2016.

In June, Trump hosted Pakistan’s army chief for a White House lunch and later announced an energy deal with Islamabad to jointly develop the country’s oil reserves. Both followed Trump’s claims of brokering a ceasefire between India and Pakistan after the two sides traded military strikes in May.

That clash saw Pakistan use Chinese-made military jets and missiles against India.

“China is heavily invested in Pakistan and, practically speaking, you can’t have any expectation that Beijing will hold back support to Islamabad,” Hooda said. “But you can’t have two hostile neighbors on your borders and simultaneously deal with them also.”

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Associated Press writer Aijaz Hussain in Srinagar, India, and video producer Liu Zheng in Beijing contributed to this report.