In a significant diplomatic gesture, Chinese President Xi Jinping characterized India and China as “good neighbors, friends and partners” during his Republic Day message to Indian President Droupadi Murmu. This statement underscores the remarkable thaw in bilateral relations between the two Asian powers following nearly four years of heightened border tensions and economic restrictions.
The diplomatic reconciliation traces back to October 2024 when President Xi and Prime Minister Narendra Modi held their first formal bilateral meeting in five years during the BRICS summit in Kazan, Russia. This breakthrough encounter set the stage for subsequent confidence-building measures, including India’s August 2025 participation in the Shanghai Cooperation Organisation summit in Tianjin where Modi reaffirmed commitments to improved relations.
Despite the deadly 2020 border clashes that claimed at least twenty Indian and four Chinese soldiers’ lives—which prompted India to ban TikTok and restrict Chinese investments—bilateral trade demonstrated remarkable resilience. Cross-border commerce continued expanding throughout the tensions, surpassing $130 billion in 2025 even as both nations navigated additional US tariff impositions on their goods.
The reconciliation process has yielded concrete outcomes: October 2025 marked the announcement of resumed direct flights after a five-year suspension, while Reuters reports indicate pending relaxations of Chinese investment restrictions in India. President Xi’s metaphor of “the dragon and elephant dancing together” captures the evolving dynamic between these civilizational neighbors who now appear determined to transcend historical complexities.
While persistent border issues require continued diplomatic attention, both nations demonstrate renewed commitment to expanding exchanges and addressing mutual concerns. According to China’s Xinhua News Agency, these developments carry profound significance for maintaining and promoting global peace and prosperity, positioning India and China as increasingly influential power blocs across Asia and beyond.