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India-China relations completed 75 years of diplomatic ties in 2025. The two countries formally established ties in 1950, with their relationship rooted in the principles of the Panchsheel Agreement signed in 1954. Read on to learn more about India-China relations!
Deeksha Dixit2 Jul, 2025
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India-China relations enter a new phase in 2025, marked by cautious engagement and strategic competition. Both nations completed 75 years of diplomatic ties, reflecting a complex history of cooperation, conflict, and evolving geopolitical dynamics. Formally established on April 1, 1950, India-China relations have evolved from early diplomatic warmth to periods of tension, culminating in both cooperation and confrontation across the decades.
India-China Relations: Recent Developments
India-China relations have entered a new phase, marked by a significant diplomatic reset after years of tension following the 2020 border clashes. The two nations commemorated 75 years of diplomatic ties with renewed dialogue and symbolic gestures, signaling a willingness to move forward.
A key breakthrough came with troop disengagement in Ladakh’s Depsang and Demchok, restoring mutual patrolling rights and easing military tensions. This progress was supported by high-level meetings, including the first Modi-Xi summit in five years at the BRICS summit in Kazan, and the restart of formal talks in 2025.
India and China have also resumed sharing hydrological data and agreed to restart the Kailash Mansarovar Yatra, reflecting growing trust. While unresolved issues like border interpretations and strategic competition remain, both countries are now actively pursuing de-escalation and cooperation to stabilize their relationship.
India-China Relations History
India-China relations have a long and complex history marked by periods of cooperation, cultural exchange, and conflict:
Period
Key Highlights
Ancient and Medieval Era
Contacts since 2nd century BC via Silk Road
Spread of Buddhism from India to China
Visits by Chinese monks Fa Xian, Xuan Zang
Colonial and Pre-Independence
Cultural ties through figures like Rabindranath Tagore
1938: Aid China Medical Mission
Cooperation during WWII against Japan
Post-Independence (1950s)
India recognized PRC on April 1, 1950
Warm ties marked by "Hindi-Chini Bhai Bhai"
Panchsheel Agreement (1954) on peaceful coexistence
Resumption of direct flights and Kailash Mansarovar Yatra
Modi-Xi Summit
India China Multilateral Relations
India and China often cooperate in multilateral platforms like:
BRICS (Brazil, Russia, India, China, South Africa): Both countries are founding members of BRICS, an influential group of emerging economies. A platform to collaborate on economic reform and global south issues.
Shanghai Cooperation Organization (SCO): China is a founding member; India joined in 2017. The SCO serves as a platform for regional security, counterterrorism, and economic dialogue.
G20: India and China are prominent members of the G20, working together on issues such as global economic stability, climate change, and sustainable development.
Asian Infrastructure Investment Bank (AIIB): Both are founding members of the AIIB, a multilateral development bank focused on infrastructure investment across Asia.
India-China Political Relations
Politically, the relationship swings between cautious engagement and strong rivalry. Key aspects include:
75th Anniversary of Diplomatic Relations: In April 2025, both countries commemorated 75 years of diplomatic ties, with leaders exchanging congratulatory messages.
High-Level Dialogues: Regular meetings between defence, foreign, and trade ministers.
Diplomatic Engagements: National security advisors from both sides engage in border resolution talks.
Border Patrol Agreement: A key turning point was the October 2024 agreement on border patrolling along the Line of Actual Control (LAC), which helped de-escalate tensions that had persisted since the 2020 Galwan Valley clash.
India-China Economic Relations
India-China economic relations in 2025 are defined by deep trade interdependence and a record trade deficit for India:
Widening Deficit: In FY 2024–25, India’s trade gap with China widened significantly, reaching a record $99.2 billion. Imports from China rose by 11.5% to $113.46 billion, while India’s exports dropped by 14.5% to just $14.25 billion.
China’s Export Dominance: China continues to be India’s largest import partner, supplying a broad range of goods such as electronics, EV batteries, solar equipment, and essential industrial materials.
Falling Indian Exports: India mainly exports raw materials like iron ore, cotton, and copper to China. These exports have declined due to weaker global demand and limited access to the Chinese market.
Structural Dependency: India’s manufacturing and infrastructure sectors rely heavily on Chinese intermediate goods, machinery, and consumer electronics
India-China Cultural Relations
In 2025, cultural ties between India and China are cautiously improving. Both countries are drawing on their shared civilizational heritage and promoting people-to-people exchanges:
Pilgrimage Resumed: China allowed the resumption of Indian pilgrimages to Mount Kailash in January 2025, highlighting shared spiritual ties and signaling diplomatic goodwill.
Cultural Collaborations: Ongoing Cultural Exchange Programmes (CEPs) support artist exchanges, joint performances, and exhibitions in art, music, and theatre.
Popular Culture Appeal: Bollywood continues to attract Chinese audiences, while Chinese films and dramas gain traction in India, reflecting mutual cultural interest.
Youth & Academic Ties: Student exchanges and scholarly visits have resumed post-pandemic, aiming to build long-term trust and deepen people-to-people connections.
India-China Military Relations
India and China are both nuclear-armed powers with large standing armies. Their military relations are defined by:
Border De-escalation: In October 2024, both sides agreed to disengage from key friction points like Depsang and Demchok along the LAC, easing tensions and allowing limited patrolling.
High-Level Military Talks: On June 26, 2025, Defence Ministers met in Qingdao at the SCO summit, with India urging a permanent solution through structured dialogue and better border management.
Limited Military Engagement: Bilateral military exercises are still suspended, but India and China engage indirectly through multilateral drills. Past agreements and resumed civil exchanges support confidence-building.
The India-China border stretches over 3,488 km, covering three major sectors: Western, Middle, and Eastern. The main points of conflict are:
Aksai Chin (Western Sector): Controlled by China but claimed by India as part of Ladakh.
Arunachal Pradesh (Eastern Sector): Administered by India but claimed by China as “South Tibet.”
Himachal Pradesh and Uttarakhand (Middle Sector): Smaller disputed areas in Himachal Pradesh and Uttarakhand.
In 1962, the two nations went to war over these territorial claims, with China gaining control over Aksai Chin.
In recent years, diplomatic and military talks have aimed to de-escalate border tensions, including confidence-building measures and withdrawal of troops from friction points. However, trust remains low, and the LAC (Line of Actual Control) is still undefined in many regions.
Way Forward
The future of India–China relations depends on managing differences and expanding common ground. Key steps include:
Clear Border Delimitation: Establishing a mutually accepted LAC to avoid future clashes.
Balanced Trade: Reducing deficits and promoting fair market access.
Continued Dialogue: Engaging through multilateral forums and bilateral talks to address issues.
Mutual Respect: Accepting each other’s core interests and avoiding strategic miscalculations.
To sum up, India and China share a deep, complex, and evolving relationship. Despite challenges, there are opportunities for both countries to build a peaceful and productive future. Dialogue, trust, and mutual understanding are key to shaping that path forward.
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