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President Xi Jinping heads to New Delhi for the BRICS Summit, signaling a potential diplomatic thaw and new trade talks after a seven-year gap.
In a significant diplomatic development, China announced on Thursday that President Xi Jinping will attend the BRICS Summit in New Delhi on September 12 and 13. This event marks his first visit to India in nearly seven years, signaling a critical step in the normalization of bilateral ties.
The visit follows a gradual thaw in relations that began after meetings between Prime Minister Narendra Modi and President Xi in October 2024. Since the four-year freeze triggered by border tensions in 2020, both nations have worked to stabilize their relationship. The upcoming summit provides a platform for high-level discussions, including potential bilateral talks on the sidelines of the event.
The visit is being viewed not as a complete realignment, but as a necessary effort in strategic risk management. Hu Shisheng, Director of the South Asia Institute at the China Institutes of Contemporary International Relations, described the move as an attempt to build a "stable form of competitive coexistence." This approach seeks to keep the border peaceful while restoring practical cooperation, acknowledging that structural differences between the two powers remain unresolved.
India’s Ambassador to China, Vikram Doraiswami, highlighted the broader significance of the visit in an article published in the Global Times. He emphasized that a stable relationship is crucial for the peace and prosperity of Asia and the wider world. "Peace and tranquility in the China-India border areas provide an essential foundation for this partnership," Doraiswami noted, underscoring the link between border stability and economic cooperation.
A key component of the ongoing normalization is the expansion of military dialogue mechanisms. Last month, Indian National Security Adviser Ajit Doval and Chinese Foreign Minister Wang Yi met in Beijing, highlighting the positive impact of leadership meetings on setting the trajectory for relations. Following these talks, both countries agreed to advance discussions on the "Early and Substantial Harvest of boundary delimitation."
On September 6, the Indian and Chinese armies held their first Corps Commander-level meeting in the Eastern Sector at the Vacha-Damai Border Personnel Meeting Point in Arunachal Pradesh. This meeting expanded military dialogue beyond the Ladakh sector, addressing tensions in the Taksing area of Upper Subansiri district. Both sides also agreed on additional meeting points for Senior Highest Military Commander meetings and new hotline channels for the Eastern and Middle Sectors.
However, challenges persist. While the Western Sector has remained largely tranquil, recent weeks have seen reports of tensions in the Eastern Sector. Keeping the peace on the Line of Actual Control (LAC) remains the biggest challenge to the continued effort at normalizing relations.
Economic ties remain a central focus of the diplomatic engagement. Xi Jinping visit to India comes at a time when two-way bilateral trade is surging. In the first six months of 2026, trade reached $91.72 billion, a 23.6% rise from the previous year. This trajectory puts the record $155.62 billion figure from 2025 in jeopardy, with China remaining India’s biggest trade partner in goods.
However, the nature of this trade is a source of concern for Indian officials. The India-China trade deficit reached $67.1 billion in the first half of the year, on track to exceed the previous year’s record of $116.12 billion. While India’s exports to China grew by 37.2% to $12.31 billion, this growth is from a small base. Exports include an increasing amount of Printed Circuit Boards (PCBs), which India previously imported from China.
Indian officials are concerned about the basket of goods, particularly the large quantities of finished electronics and other equipment imported. Ambassador Doraiswami previously stated that while a perfectly balanced trade is unrealistic, exports should consist of goods that India can add value to, rather than pure consumption goods. The upcoming trade talks between Commerce Minister Wang Wentao and his Indian counterpart, Piyush Goyal, will aim to air these concerns and seek further relaxation of investment restrictions and export controls.
The BRICS Summit in New Delhi serves as a critical juncture for India-China relations. With Xi Jinping’s presence, both nations have an opportunity to deepen cooperation on issues ranging from trade and connectivity to climate action and the digital economy. The visit signals a commitment to maintaining stability amid structural competition. As both sides work to manage border tensions and expand military dialogue, the economic relationship will likely continue to grow, albeit with persistent imbalances. The long-term impact will depend on the ability of both governments to sustain this delicate balance of competitive coexistence, ensuring that border peace translates into sustainable and equitable economic partnerships for the 2.8 billion people involved.
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