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DAILY NEWS ANALYSIS
12 September, 2025
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India’s External Affairs Minister held the first ministerial-level meeting with China’s Foreign Minister in Delhi since the LAC disengagement in November 2024.
Discussions focused on peace consolidation, economic cooperation, and strategic challenges.
Advancing De-escalation & Stability
Both sides emphasized the importance of peace along the Line of Actual Control (LAC).
India reiterated its 3Ds approach: Disengagement, De-escalation, De-induction.
Also stressed the 3 Mutuals: Respect, Sensitivity, Interest.
Strengthening Economic & Trade Links
Talks on enhancing trade facilitation, connectivity, river data sharing, and technology transfer.
China agreed to ease restrictions on supplying fertilizers, rare earths, and tunnel-boring machines.
Resumption of border trade via Lipulekh, Shipki La, and Nathu La.
Visa facilitation for tourists, businesses, and media.
Facilitating Cultural & People-to-People Ties
Reaffirmed resumption of Kailash Mansarovar Yatra and tourist visas.
Agreement to hold a High-Level Mechanism on People-to-People Exchanges in 2026.
Joint celebration of 75 years of diplomatic relations.
Regional Security and Global Engagement
India raised concerns about Pakistan-backed terrorism in Jammu & Kashmir.
Both agreed on working toward a multipolar world and regional stability.
Strengthened cooperation via SCO, BRICS, and bilateral mechanisms.
Cultural & Educational Ties: Shared civilizational links (e.g., Xuanzang, Bodhidharma), academic collaborations, growing Chinese interest in Ayurveda, Yoga, Indian arts.
Capital Flows & Technology Sharing: Chinese investments in Indian startups (unicorns) exceeding $3.5 billion by 2020; cooperation in infrastructure and high-speed rail.
Multilateral Cooperation: Collaboration in BRICS, SCO, G20, AIIB, NDB, and climate diplomacy (including support for International Solar Alliance).
Climate Justice & South-South Cooperation: Common stance against Western-imposed carbon tariffs (notably EU’s Carbon Border Tax), promoting equitable global climate governance.
Persistent Border Disputes: Undefined 3,488 km LAC with unresolved friction points; Chinese occupation of Aksai Chin and claims over Arunachal Pradesh.
Economic Asymmetry & Trade Deficit: $127.7 billion bilateral trade in 2024-25; India’s trade deficit rose to $85 billion.
Strategic & Security Concerns: China-Pakistan Economic Corridor (CPEC), China’s opposition to India’s NSG/UNSC aspirations, cyber threats, and heavy dependence on Chinese technology.
Hydrological & Environmental Issues: China’s control over Brahmaputra and Sutlej rivers, dam projects posing risks to India’s water security.
Regional Leadership Competition: China’s expanding maritime presence in South Asia and the Indian Ocean challenges India’s influence.
Deepen Strategic Dialogue
Continue Special Representatives (SR) and Working Mechanism for Consultation and Coordination (WMCC) talks.
Expand Confidence-Building Measures (CBMs) to economic and cultural fields.
Consider demilitarized buffer zones and clear disengagement protocols.
Enhance India’s border infrastructure and intelligence capabilities.
Economic & Trade Rebalancing
Pursue selective engagement, emphasizing capital goods and technology imports.
Reduce overdependence in critical sectors (telecom, pharmaceuticals).
Structured dialogue on market access, investment screening, and supply chains.
Manage Water & Environmental Concerns
Resume Brahmaputra hydrological data sharing.
Establish institutionalized water-sharing frameworks.
Promote joint sustainable dam management and climate-resilient practices.
Leverage Multilateral Platforms
Collaborate in BRICS, SCO, G20 for reforms, South-South cooperation, and sustainable financing.
Use issue-based coalitions to overcome bilateral irritants.
Long-Term Trust Building through Incrementalism
Adopt small, verifiable steps rather than “grand resets.”
Foster cooperation in pandemic preparedness, disaster relief, student exchanges.
India-China relations are cautiously improving through enhanced dialogue, trade, and regional cooperation. Despite deep-rooted challenges in border disputes, economic imbalance, and security concerns, sustained confidence-building, strategic autonomy, and multilateral cooperation offer pathways to a more stable and constructive bilateral relationship
Source: PIB
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