China and India Forge New Era of Cooperation, Boosting Trade and Diplomatic Ties
January 26, 2026
Xi affirmed that the relationship has progressed in line with the fundamental interests of both peoples, urging strengthened strategic communication and broader cooperation.
The warming tempo comes as the U.S. tightens Russia sanctions, with Beijing accusing Washington of driving a wedge between China and India.
Despite lingering border issues, the broader push toward stability and cooperation continues between Beijing and New Delhi.
Trade remains robust, exceeding $130 billion annually, with signals that India may ease restrictions on Chinese investments to boost mutual economic collaboration amid U.S. tariff pressures.
China and India have moved from a highly troubled border era to a gradual thaw, with a long and poorly demarcated frontier giving way to high-level engagement, resumed direct flights in 2025, and a rise in trade and investment as ties improve since last year.
There has been a clear warming in diplomacy, featuring Xi–Modi meetings and intensified economic links, alongside broader geopolitical strains.
Xi Jinping characterized China–India relations as improving and significant for global peace, calling them good neighbours, friends, and partners in a Republic Day message.
Recent steps to normalize relations include ending border standoffs, resuming tourist visas for Chinese nationals, restarting the Kailash Manasarovar Yatra, renewing direct flights, and commemorating the 75th anniversary of diplomatic ties with visa facilitation.
Strategic dynamics show both nations seeking stability to counterbalance U.S. economic policy, aiming to reduce geopolitical risk through closer partnership.
Xi used the metaphor of the dragon and elephant dancing together to describe the relationship and urged expanded exchanges and cooperation while addressing mutual concerns.
The strengthening China–India ties could influence global trade, prompting countries like the U.K., Canada, and Australia to reassess policies toward both nations.
In broader conversations, Western states emphasize defense, energy, critical minerals, and emerging technologies in their India relations, while the Quad features in discussions with the U.S.
Summary based on 13 sources
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Sources

Al Jazeera • Jan 26, 2026
President Xi says India, China ‘friends, partners’ in Republic Day message
AsiaOne • Jan 26, 2026
China's Xi says India, China are 'friends, partners'
Firstpost • Jan 26, 2026
‘Good neighbours, friends and partners’: On India’s R-Day, Xi claps for dragon-elephant dance
Republic World • Jan 26, 2026
'Good Neighbourly Friends And Partners': XI Jinping Sends Message Of Partnership To India On Republic Day