The expected Xi Jinping India visit could deepen a cautious diplomatic thaw, although investment restrictions and business mistrust remain significant barriers.
NEW DELHI: The expected Xi Jinping India visit could mark another important step towards improving relations between Asia’s two biggest countries, with the Chinese President widely expected to attend the BRICS summit in New Delhi this weekend.
Xi is expected in the Indian capital for the September 12-13 summit. If the trip goes ahead, it would be his first visit to India in seven years and one of the clearest signs yet that relations between New Delhi and Beijing are moving away from the deep tensions that followed their 2020 border clash.
However, Beijing has not formally confirmed Xi’s attendance, and a bilateral meeting with the Indian PM has also not been announced.
Why would Xi’s visit matter?
India-China relations have gradually improved following years of tensions along their disputed Himalayan border.
The two sides have resumed high-level engagement, while practical links including direct flights and some business travel have improved. The Indian PM also visited China last year, helping create momentum for renewed dialogue.
A Xi Jinping India visit would therefore carry considerable diplomatic symbolism, particularly if the two leaders hold direct talks during the BRICS gathering.
But political engagement does not mean all the underlying problems have disappeared.
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Why are business ties still difficult?
Companies continue to face investment restrictions, regulatory scrutiny, visa issues and barriers involving industrial equipment and technology.
Reuters reports that several major Chinese businesses have encountered difficulties expanding in India. Chinese electric vehicle manufacturers BYD and Great Wall Motor have previously withdrawn planned investments, while other companies remain subject to regulatory scrutiny.
There are concerns on the Chinese side too, including restrictions involving technology and industrial supplies.
The contrast is striking because commercial ties remain substantial. Bilateral trade reached a record $155 billion last year, according to recent reporting, demonstrating how economically connected the two countries remain despite political mistrust.
The Xi Jinping India visit could help establish a more positive political atmosphere, but rebuilding deeper economic confidence is likely to take considerably longer.
For both governments, the challenge will be turning improved diplomatic communication into practical progress without overlooking longstanding concerns involving the border, investment and national security.
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Impact to expect
Stability. A successful visit and possible leaders’ meeting could strengthen dialogue between India and China, while giving businesses cautious hope that some restrictions may eventually ease.
