China
Facilitating a Harmonious Dance Between the Chinese Dragon and Indian Elephant
India’s cautious rapprochement with China has alleviated some tensions, yet domestic pressures prompt trade restrictions undermining industrial ambitions. Deeper regional engagement could enhance India’s competitiveness amidst persistent mistrust and protectionist policies.
India’s Cautious Engagement with China
India’s gradual rapprochement with China has helped alleviate some bilateral tensions, yet domestic political pressures continue to skew New Delhi’s approach. Ongoing restrictions on Chinese trade and investment reflect concerns about economic reliance, posing barriers to India’s industrial aspirations. While competition from China creates challenges, its capital, technology, and goods could greatly enhance Indian manufacturing, especially as Chinese companies seek to relocate production abroad. Instead of adopting unilateral protectionism, India could gain more by engaging in regional frameworks like RCEP and CPTPP, which facilitate more extensive integration into Asian production networks.
Recent Developments in Bilateral Relations
Chinese President Xi Jinping’s visit to New Delhi for the BRICS summit in September 2026 marked a significant moment, as it was his first trip to India in seven years. The meeting with Prime Minister Narendra Modi indicates a stabilization in relations after a fraught period, although underlying mistrust remains, particularly in trade. This "dragon-elephant tango" suggests that both nations still grapple with mutual suspicions, often stepping on each other’s toes despite diplomatic efforts.
Trade Challenges and Missed Opportunities
Amidst these complexities, U.S. Secretary of State Marco Rubio’s recent visit did not yield a sought-after trade agreement, prolonging India’s quest for market access. New Delhi is pursuing various trade agreements with countries like the UAE, Australia, and the EU, but these efforts have not fully addressed barriers in the U.S. market. Furthermore, many agreements involve sensitive sectors or phased-in tariff reductions, limiting their effectiveness in integrating Indian firms into regional production chains. Despite some easing of restrictions on Chinese investments, significant barriers remain, counteracting India’s goals of enhancing competitiveness on the global stage.
Source : Making the Chinese dragon–Indian elephant tango work
