BRICS Summit: Modi and Xi agree to address differences and strengthen India-China relations

• Xi and Modi hold first formal talks in five years
• The two leaders meet on the sidelines of the BRICS summit
• Follows an agreement to resolve the border dispute
• Discussions anticipated to lead to increased Chinese investment in India

Chinese President Xi Jinping and Indian Prime Minister Narendra Modi agreed on Wednesday to enhance communication and cooperation between their countries, aiming to resolve conflicts and improve relations strained by a deadly military clash in 2020.

The two leaders met on the sidelines of the BRICS summit in Russia, marking their first formal talks in five years. This meeting signaled a recovery in ties between the two Asian powers after their diplomatic rift over the disputed Himalayan border.

Despite military and diplomatic tensions, India and China, two of the world's largest economies, have maintained strong trade relations. This renewed engagement is expected to lead to increased Chinese investment in India. Both leaders instructed their officials to take further steps to stabilize all aspects of their bilateral relationship.

The Xi-Modi meeting in Kazan came just two days after New Delhi announced a deal with Beijing to resolve the four-year military standoff in the Ladakh region, though details of the agreement remain undisclosed.

Chinese state broadcaster CCTV reported that Xi emphasized the need for stronger communication, cooperation, and conflict resolution to support each country's development goals. Modi proposed ideas for improving ties, which Xi accepted in principle. Modi also stressed that peace, stability, mutual trust, and respect were essential for their relationship.

"We welcome the agreement on issues from the past four years," Modi told Xi, as aired on India's state broadcaster Doordarshan. "It should be our priority to maintain peace and tranquillity at the border. Mutual trust, respect, and sensitivity must be the foundation of our relationship."

Path to Improving Relations

Relations between the two nuclear-armed neighbors have been strained since a 2020 clash along their disputed Himalayan border, which left 20 Indian and four Chinese soldiers dead. In response, both sides deployed tens of thousands of troops and weapons to the region.

Although Modi and Xi had not held formal bilateral talks since the clash, they participated in various multilateral events. Their last formal summit was in October 2019 in Mamallapuram, India. The leaders briefly interacted at the G20 summit in Bali in November 2022 and at the BRICS summit in Johannesburg in August 2023, though their versions of the conversation differed, indicating lingering differences.

Xi's absence from the G20 summit hosted by New Delhi in September 2023 was seen as another setback in relations.

However, recent diplomatic efforts gained momentum after the countries' foreign ministers met in July 2023 and agreed to advance talks to ease border tensions. India had made any improvement in overall political and business ties contingent on resolving the border standoff.

Following the Ladakh clashes, India increased scrutiny of Chinese investments, suspended direct flights, and effectively halted issuing visas to Chinese nationals.

Speaking in Kazan, Indian Foreign Secretary Vikram Misri expressed optimism about future relations, stating, "As we have maintained over the last four years, restoring peace and tranquillity in border areas will open the door to the normalization of our bilateral ties."