India-China underline need to expand bilateral trade and investment ties

Prime Minister Narendra Modi met with Mr. Xi Jinping, President of the People’s Republic of China, on the sidelines of the Summit of the leaders of the Shanghai Cooperation Organization (SCO) in Tianjin on 31 August 2025. Both leaders welcomed the positive momentum and steady progress in bilateral relations since their last meeting in Kazan in October 2024. They reaffirmed that the two countries were development partners and not rivals, and that their differences should not turn into disputes. Prime Minister underlined the importance of peace and tranquility on the border areas for continued development of bilateral relations. The two leaders noted with satisfaction the successful disengagement last year and the maintenance of peace and tranquility along the border areas since then. They expressed commitment to a fair, reasonable, and mutually acceptable resolution of the boundary question proceeding from the political perspective of their overall bilateral relations and the long-term interests of the two peoples. They recognized the important decisions taken by the two Special Representatives in their Talks earlier this month, and agreed to further support their efforts. The two leaders noted the need to strengthen people-to-people ties through direct flights and visa facilitation, building on the resumption of Kailash Manasarovar Yatra and tourist visa. On economic and trade relations, they recognized the role of their two economies to stabilize world trade. They underlined the need to proceed from a political and strategic direction to expand bilateral trade and investment ties and reduce trade deficit.