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Xi Jinping Calls China and India ‘Good Neighbours’ as Ties Improve Amid US Tariff War
Chinese President Xi Jinping praised China and India as “good neighbours, friends and partners” while congratulating India on Republic Day, signaling warming ties after years of border tensions amid the impact of Trump’s global tariff war.
ND
by News Desk
2026-01-26
Xi Jinping Calls China and India ‘Good Neighbours’ as Ties Improve Amid US Tariff War

Chinese President Xi Jinping has described Beijing and New Delhi as “good neighbours, friends and partners,” highlighting improving relations between the two Asian powers as global trade faces disruption from United States President Donald Trump’s ongoing tariff war.

According to China’s state-run Xinhua news agency, President Xi extended warm congratulations to Indian President Droupadi Murmu on the occasion of India’s Republic Day on Monday. In his message, Xi noted that China-India relations had continued to develop positively over the past year and were of great importance for promoting global peace and prosperity.

The Chinese leader’s remarks come as both countries work to rebuild ties after nearly four years of strained relations following deadly border clashes in 2020. The skirmishes claimed the lives of at least 20 Indian soldiers, while four Chinese troops were also reportedly killed.

In the aftermath of the conflict, India imposed economic restrictions on Chinese companies, including banning popular app TikTok and tightening investment rules. Despite these measures, bilateral trade between the two nations continued to grow, surpassing $130 billion annually.

Relations began improving notably in October 2024 when Xi Jinping and Indian Prime Minister Narendra Modi held their first formal talks in five years during the BRICS summit in Kazan, Russia. The two leaders, whose countries are founding members of the BRICS group, signaled a willingness to reset diplomatic and economic ties.

Momentum continued last August when Prime Minister Modi visited China for the Shanghai Cooperation Organisation (SCO) summit in Tianjin. Following the visit, Modi expressed commitment to strengthening bilateral relations — a move that coincided with the United States imposing heavy tariffs on Indian exports.

Trump’s renewed trade war has significantly impacted both economies. Indian exports to the US now face tariffs as high as 50 percent, among the steepest globally, while Chinese goods are subject to tariffs exceeding 30 percent.

In his message, Xi used a symbolic phrase, referring to China and India as the “dragon and the elephant dancing together,” expressing hope for expanded cooperation, increased exchanges, and constructive dialogue to resolve outstanding issues.

Although border disputes remain unresolved, both nations have taken practical steps to improve relations. In October, they announced the resumption of direct flights after a five-year suspension. India is also reportedly considering easing restrictions on Chinese investments, signaling further economic engagement.

Analysts view the warming ties as a strategic response to shifting global economic dynamics, particularly the pressure created by escalating trade tensions with the United States.
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