India-China Relations Thaw Amidst Global Trade Shifts

The article discusses the warming of ties between India and China, despite their historical differences. The two countries have been engaging in diplomatic efforts to improve their relationship, with India’s External Affairs Minister S. Jaishankar visiting China in February 2023 and Chinese Foreign Minister Wang Yi visiting India in March 2023. The article highlights the growing trade and economic ties between the two countries, with a focus on the Belt and Road Initiative (BRI) and the Shanghai Cooperation Organization (SCO). It also touches upon the ongoing border disputes and the need for confidence-building measures along the Line of Actual Control (LAC). The article concludes that while there have been some positive developments in India-China relations, there are still significant challenges to be addressed.

Indian Prime Minister Narendra Modi and China's top diplomat Wang Yi met in New Delhi, discussing ways to improve bilateral ties and border management. Modi praised the 'stable, predictable, constructive ties' between the two nations, highlighting their contribution to regional and global peace and prosperity. The meeting comes ahead of Modi's planned visit to China later this month for the Shanghai Cooperation Organisation summit, where he is expected to meet Chinese President Xi Jinping.

The article discusses China's electric vehicle (EV) industry and its expansion into global markets. It highlights seven key stories from the past two weeks, including Tesla's launch of a longer-range Model 3 variant in China, Chinese EV makers reporting a sales dip in July, and the industry's push to go global. The article notes that the EV industry, once inward-focused, is now leading China's efforts to forge an offshore economic empire. The industry is facing intense competition, with companies like BYD challenging Tesla in Hong Kong. The article also mentions that EV sales in mainland China hit a speed bump in July, sparking worries about the industry's growth momentum.

India and China have made significant progress in their diplomatic relations, agreeing to ease border tensions, resume direct flights and business links, and explore trade cooperation, particularly in strategic sectors like rare earths. This thaw in relations is seen as a pragmatic effort by both sides to gain leverage in a shifting global order, especially in the face of mounting US tariff pressure. While deep mistrust remains, the two Asian powers are taking 'concrete' steps to boost trade and investment flows and have agreed to create an 'expert group' to explore boundary delimitation in disputed areas.