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China-India relations
ChinaDiplomacy

India-China thaw: rare earths, border headway as Trump turns up tariff heat

Mutual distrust remains deep but progress reflects pragmatic efforts on both sides to gain leverage in shifting global order, experts say

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Indian Prime Minister Narendra Modi (left) will meet Chinese President Xi Jinping in Tianjin later this month. Photo: Xinhua
Khushboo Razdanin Washington
The world’s two most-populous countries made significant progress on the diplomatic front recently, and those championing such moves may have Washington to thank.
India has agreed to a long-standing Chinese proposal to ease border tensions while also resuming direct flights and business links, as both sides explore trade cooperation – particularly in strategic sectors like rare earths – in a bid to reset their strained ties.

Experts highlight that even as deep mistrust lingers, the Asian powers view mounting US tariff pressure as an opportunity to show Washington that they can push back and have other options.

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India’s Ministry of External Affairs on Tuesday said the two sides would create an “expert group” to explore an “early harvest” approach to boundary delimitation in disputed areas. This marks a shift from New Delhi’s earlier opposition to prioritising settlement in less contentious sectors, particularly in the Sikkim region, in favour of a comprehensive resolution. There are three other disputed sectors along the Sino-India border: western, middle and eastern.

China and India are exploring trade cooperation, particularly in strategic sectors like rare earths, in an effort to reset ties. Photo: Reuters
China and India are exploring trade cooperation, particularly in strategic sectors like rare earths, in an effort to reset ties. Photo: Reuters

The two sides also pledged to take “concrete” steps to boost trade and investment flows.

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