PM Modi China visit | In 2 readouts, a message and a signal: ‘Strategic autonomy, fair trade’

A detailed analysis of both readouts is telling.

First, India underlined that Modi and Xi framed the two countries as “development partners and not rivals.” This was echoed in the Chinese readout: “As long as they remain committed to the overarching principle of being partners, not rivals, and providing development opportunities, not threats, for each other, China-India relations will flourish and move forward steadily.” This formulation of India and China as “partners, not rivals” is something new and noteworthy.

Second, the Prime Minister noted that India and China both pursue “strategic autonomy”, and their relations should not be seen through a “third country lens”. This again is an important and a new framing since Beijing has for long viewed India through the lens of the US using Delhi as a counterweight to contain China. And, with the Trump administration coming down hard on India by imposing tariffs, India is signalling its own agency in choosing its partners.

The Chinese readout echoed this as well, attributing this comment to Modi: “Both India and China uphold strategic autonomy and independent diplomacy, and their bilateral relations will not be influenced by third parties.”

Third, demonstrating strategic autonomy, the Indian statement underlined that “the two leaders deemed it necessary to expand common ground on bilateral, regional, and global issues and challenges, like terrorism and fair trade in multilateral platforms”.

This is again important since Pakistan-sponsored cross-border terrorism and US-imposed 50 per cent tariffs have impacted India’s security and economy. Beijing’s envoy had already said that China will stand with India on the US-imposed tariffs. This is a broader point that India is making with this statement.

Fourth, both Modi and Xi have taken personal ownership of the thaw. This was reflected in the Indian readout that “both leaders welcomed the positive momentum and steady progress in bilateral relations since their last meeting in Kazan in October 2024”. While Modi called it “productive” leading to “positive direction”, Xi called it “successful” that marked the “restart” of China-India ties — indicating the pause.

Fifth, Modi linked the bilateral relationship as a global imperative. He said that a stable relationship and cooperation between India and China and their 2.8 billion people need to be on the basis of “mutual respect, mutual interest and mutual sensitivity.” This is necessary for the growth and development of the two countries, he said, as well as for a “multipolar world and a multi-polar Asia.”

Incidentally, this has been Delhi’s mantra over the last few years as China has not been too eager to acknowledge India as another pole in the world, let alone in Asia, and views itself as the most dominant power in the region.

Sixth, the Prime Minister “underlined the importance of peace and tranquility on the border areas for continued development of bilateral relations.” The statement said that the two leaders noted with satisfaction the “successful disengagement last year” and the calm since then.

New Delhi added that both sides had “expressed commitment to a fair, reasonable, and mutually acceptable resolution of the boundary question proceeding from the political perspective of their overall bilateral relations and the long-term interests of the two peoples.” There was also recognition of the important decisions taken by the two Special Representatives in their talks earlier this month.

In fact, Foreign Secretary Vikram Misri said that peace and tranquility on the border are an “insurance policy” for bilateral ties.

The Chinese statement, however, said that both sides should “view and handle China-India relations from a strategic and long-term perspective”, “further elevate them through the Tianjin summit, and promote the sustained, healthy, and stable development of bilateral relations”. This is divergent from the Indian position.

In fact, Beijing’s statement invoked Jawaharlal Nehru’s Panchsheel policy to make its point. “The Five Principles of Peaceful Coexistence, advocated by the older generation of leaders of China and India over 70 years ago, must be cherished and promoted. They should work together to maintain peace and tranquility in the border areas and not let the border issue define the overall China-India relationship,” it said.

Seventh, based on its positive assessment of the ties, the Indian statement listed the next steps — direct flights and expansion of bilateral trade and investment. These have been key Chinese demands.

“On economic and trade relations, (both leaders) recognized the role of their two economies to stabilize world trade. They underlined the need to proceed from a political and strategic direction to expand bilateral trade and investment ties and reduce trade deficit,” the Indian statement said.

In this context, the Chinese readout said that “they should expand exchanges and cooperation to achieve mutual benefit and win-win results”. It also said that both China and India are at a “critical stage of development and revitalization” and should focus on development as their greatest common denominator, supporting, promoting, and achieving mutual success. “They should accommodate each other’s concerns and uphold harmonious coexistence,” it said.