Prime Minister Narendra Modi arrived in China on Saturday, August 30, 2025, after concluding a landmark two-day visit to Japan, signaling a renewed diplomatic push to strengthen India’s presence in Asia’s strategic and economic landscape.
His visit comes at a crucial juncture as China indicates a willingness to recalibrate economic ties with India, amid global economic uncertainties and shifting geopolitical dynamics.
Modi is in Tianjin, China, and will participate in the Shanghai Cooperation Organisation (SCO) annual summit on August 31 and September 1, 2025.
The summit, bringing together 10 member nations and over 20 world leaders, is being closely watched for its diplomatic weight, particularly in shaping India-China relations at a time when bilateral trade dynamics and regional security challenges dominate headlines.
China’s New Approach: Economic Pragmatism in Focus
In the run-up to the SCO summit, Chinese President Xi Jinping has been extending a clear message of economic pragmatism.
Hosting dignitaries including United Nations Secretary-General António Guterres and Egyptian Prime Minister Mostafa Madbouly, Beijing has underscored its readiness to explore new avenues of trade and investment partnerships with SCO members, including India.
This signals a noteworthy shift in China’s stance—seeking to stabilize and deepen economic ties with India at a time of heightened global uncertainty and following escalating trade tensions between India and the United States, with Washington’s imposition of steep 50% tariffs on Indian exports causing ripples in global trade flows.
India’s Trade Concerns and the Need for Rebalancing
India has consistently voiced concerns over its ballooning trade deficit with China and the structural barriers faced by Indian goods in accessing the Chinese market.
Currently, Chinese exports to India dominate across sectors, including electronics, pharmaceuticals, and infrastructure equipment, creating a heavily lopsided trade balance.
The SCO summit is expected to provide a platform for frank dialogue between India and China, where economic diplomacy will play a central role.
Observers expect the summit to feature discussions on easing non-tariff barriers, attracting Chinese investments into India’s industrial corridors, and fostering collaboration in emerging technologies such as artificial intelligence, green energy, and digital innovation.
A Historic Gathering in Tianjin
The Shanghai Cooperation Organisation Summit will take place in the northern port city of Tianjin against a backdrop of intense geopolitical activity, including preparations for a grand military parade in Beijing to commemorate 80 years since the end of World War II.
The summit’s timing underlines its symbolic and strategic importance, as Beijing seeks to position itself as a stabilizing force amid an evolving global order.
India’s active participation is expected to redefine its engagement with SCO nations, while also reinforcing its role as a key economic player in Asia.
PM Modi’s presence offers an opportunity to recalibrate India-China ties beyond disputes, steering them toward greater economic cooperation and mutual growth.
As Modi’s tour of Asia moves from Tokyo’s technological diplomacy to Tianjin’s strategic dialogues, this visit could mark a turning point in regional economic integration—one where India and China, despite longstanding differences, may find common ground in shared prosperity and multilateral collaboration.
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