Name: Rivals and Partners: What to Expect From Xi-Modi Talks
Uploaded: 2025-08-27T11:00:00Z
Duration: 3 min 51 s
Description: Indian Prime Minister Narendra Modi is expected to meet Chinese leader Xi Jinping as ties with the U.S. sour. WSJ’s Tripti Lahiri explains what’s at stake.

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Indian Prime Minister Narendra Modi is expected to meet Chinese leader Xi Jinping as ties with the U.S. sour. WSJ’s Tripti Lahiri explains what’s at stake. Photo: China Daily/Reuters

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Indian Prime Minister Narendra Modi is expected to meet Chinese leader Xi Jinping as ties with the U.S. sour. WSJ’s Tripti Lahiri explains what’s at stake.

Rivals and Partners: What to Expect From Xi-Modi Talks

India's Prime Minister Narendra Modi and Chinese leader Xi Jinping are going to be meeting in China on the sidelines of the SEO summit. This is a pretty big deal. India's Modi hasn't been to China in years. The two countries have had a rough patch in their relationships ever since the 2020 clash. This visit comes at a particularly interesting time. We've seen US President Trump lobby tariff threats around the world, but in particular at China and recently at India as well. Against that backdrop, it makes both countries think, "Well, maybe we could be doing more to work together "despite our differences."

There's a lot of disagreement about who should be where. Initially what they tried to do is just move their troops away from each other. And then subsequent stages involve taking away sort of temporary equipment, temporary camps, and then returning to what both sides called the 2020 patrolling status. And India and China have talked in recent days about setting up more mechanisms to address the border and to create trust on the border. So they are trying to make progress on that. But it is a difficult issue. It is a very tricky moment for Modi's diplomacy. He has actually invested a lot in improving ties with the US. There's always sort of a little bit of suspicion or reserve or worry of, you know, in India side, for example, about being taken for granted or being disrespected.

It's really an honor to see you, and you have been my friend for a long time.

At the same time, India is very clear that it does see important relationship with the US. And although it wants things to be more normal with China, I don't think it would ever see or compare where ties could go with China to where it would like to be with the US as a relationship. For years, it has run a massive deficit with China. India doesn't actually buy a lot of consumer goods from the US, they're too expensive, but buys lots and lots of things from China. But it also buys things from China that go into its own exports. So it could be stuff from making generic drugs or it could be parts that go into phones. At the same time, because of security issues, India has made it a lot more difficult for China to invest in India freely. But there are signs and signals that India is trying to recalibrate that. I think both India and China feel that the current status quo, or at least the status quo that prevailed following the 2020 clash at a certain point was not tenable. They haven't even been direct flights between the two countries. And that is something that they have said that they will work to restoring. So both of them recognize, you know, these two large Asian economies, you know, billion plus populations, they can't be in that kind of a frozen situation. But I still think, you know, there's been a lot of distrust, both sides have built infrastructure on the border, preparing obviously for some future conflict. And I think that it's gonna be hard for economics alone to really trump all of that kind of distrust that has built up over time.

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