India and China are working to restore economic links damaged by a deadly 2020 border clash, signaling Prime Minister Narendra Modi’s growing alignment with BRICS nations after U.S. President Donald Trump imposed steep new tariffs on Indian goods.
According to people familiar with the matter, Modi’s government is preparing to resume direct flights with China as early as next month, with a formal announcement likely during his planned visit to China for the Shanghai Cooperation Organisation summit in Tianjin on Aug. 31. It would be Modi’s first trip to China in seven years and include talks with President Xi Jinping.
Direct flights between the two countries were halted during the Covid-19 pandemic, coinciding with a sharp deterioration in relations after violent Himalayan border clashes killed 20 Indian soldiers and an undisclosed number of Chinese troops.
The move toward rapprochement comes after Trump doubled tariffs on Indian goods to 50% in retaliation for New Delhi’s purchases of Russian oil. Trump’s public remarks calling India’s economy “dead” and its trade barriers “obnoxious” further strained ties with what has long been India’s largest trading partner. The decision marked a setback for Modi, who had previously praised Trump and was among the first foreign leaders to visit him after his return to the White House.
Henry Wang, president of the Center for China and Globalization, said relations between India and China are now in an “up cycle,” noting that as major players in the Global South, “they have to really speak to each other.” He added that Trump’s tariff war has reinforced India’s need for “strategic autonomy and strategic independence.”
China, also targeted by Trump’s trade measures, has shown readiness to improve ties. This month, Beijing eased restrictions on urea shipments to India — the world’s largest importer of the fertilizer. Although initial volumes remain small, trade could expand, helping ease global shortages and lower prices. China had lifted its broader export ban in June but kept restrictions on India until now.
