Indian Prime Minister Narendra Modi and Chinese President Xi Jinping held a crucial meeting on Sunday on the sidelines of the Shanghai Cooperation Organisation (SCO) forum. In his first visit to China in seven years, Modi stated that India is dedicated to improving relations with Beijing based on "mutual respect, trust and sensitivities."

The meeting comes just five days after the US imposed a 50% tariff on Indian goods, a move widely seen as a response to India's continued purchase of Russian oil. Analysts believe that both leaders are seeking to present a united front against Western pressure.

During their discussion, Modi noted that a climate of "peace and stability" has been established along the disputed Himalayan border. This area was the site of a deadly clash in 2020 that froze most areas of cooperation between the two nuclear-armed rivals. While details were not disclosed, Modi confirmed that an agreement had been reached on border management.

The bilateral relationship has shown signs of thawing recently. This follows a breakthrough meeting last year in Russia and accelerated after the US renewed tariff threats against New Delhi. Additionally, Modi announced that direct flights between the two countries, which have been suspended since 2020, will be resumed.

In a recent visit to India by Chinese Foreign Minister Wang Yi, China agreed to lift export restrictions on rare earths, fertilizers, and tunnel boring machines. China’s ambassador to India, Xu Feihong, has also publicly stated that China opposes the US tariffs on India and will "firmly stand with India."

China has also recently allowed Indian pilgrims to visit Buddhist sites in Tibet and both nations have lifted reciprocal tourist visa restrictions. According to Manoj Kewalramani, a Sino-Indian relations expert, both countries are likely in a "lengthy and fraught process of defining a new equilibrium in the relationship."