Bilateral Reset Explained: India–China Relations Decoded | Vajirao & Reddy Institute

INDIA CHINA RELATIONS: BILATERAL RESET
Why in News?
• On August 18–19, 2025, Chinese Foreign Minister Wang Yi visited New Delhi to hold bilateral talks with External Affairs Minister S. Jaishankar and National Security Advisor Ajit Doval.
• The discussions focused on: ○ De-escalation at the Line of Actual Control (LAC) ○ Improving bilateral ties and trade

INDIA CHINA BORDER STANDOFF (2020 TO PRESENT)
• April–May 2020: PLA incursions in Eastern Ladakh began.
• June 15, 2020: Galwan Valley clash – 20 Indian soldiers martyred; significant loss on Chinese side too (undisclosed).

KEY DEVELOPMENTS FROM AUGUST 2025 MEETING
1. Statements by EAM Dr. S. Jaishankar
• India and China “have seen a difficult period” but “now seek to move ahead”.

2. Emphasis on Border Peace
• “Peace and tranquillity at the border is the basis for any positive momentum.”
• Asserted that the de-escalation process at the LAC must move forward.

3. Follow-up on Prior Issues Raised
• Jaishankar brought up “particular concerns” from his July 2025 Beijing visit, including:
o Restrictive trade practices by China

REBUILDING BILATERAL TIES
Area Progress/Status
Kailash Mansarovar Yatra Resumed after 5 years (suspended since 2020)
Tourist Visas India resumed visa issuance for Chinese nationals

BROADER GEOPOLITICAL DIALOGUE
• India reaffirmed its commitment to:
o A fair, balanced, and multipolar world
o A multipolar Asia

CHINA’S POSITION (WANG YI’s POSITION)
• India-China relations have gained “shared confidence”.

• Highlighted:
o Efforts to “dispel interference”
• Asserted that: “India and China can provide the most-needed certainty and stability to Asia and the world.”
• Blamed “rampant unilateralism” and disruption of free trade — indirectly referencing U.S. global policies (particularly under the Trump administration).

• Called for both countries to promote:
o Dignity for developing nations
o Global South unity
o Dialogue over confrontation

WHAT ARE REEs?
• Rare Earths: Group of 17 metals with crucial applications in:
o Electronics
o Green energy (e.g. wind turbines, EVs)
o Defence (missiles, radars)
o Medical tech

• Challenges in imports from China:
o No outright ban, but stringent export controls & licensing.

GEOPOLITICAL CONTEXT
India–US Trade Tensions:
• US under President Trump (2.0) has:
o Imposed 50% tariffs on Indian goods.
o Penalised India for importing Russian oil (25% tariff).

SPECIAL REPRESENTATIVE TALKS
• 24th Round of Talks between:
o Indian NSA Ajit Doval
o Chinese Foreign Minister Wang Yi

• Agenda:
o Border delimitation & demarcation
o Military disengagement
o Confidence-Building Measures (CBMs)

STRATEGIC & DIPLOMATIC SIGNIFICANCE
Domain Implication
Border Security Full disengagement remains pending in sectors like Depsang and Demchok
Bilateral Trust Dialogue is key to rebuilding mutual confidence
Trade China's trade restrictions on rare earths impact India’s tech & EV sectors
Multilateral Engagement Prepares for India-China engagement at SCO, BRICS, and G20

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