Key Points:
- Historic Milestone: India and China celebrate 75 years of diplomatic relations with a rare conversation between Chinese President Xi Jinping and Indian President Droupadi Murmu.
- Call for Unity: Xi emphasizes a “Dragon-Elephant tango,” symbolizing harmonious cooperation between the two nations.
- Economic Focus: China signals willingness to reduce the trade deficit with India by increasing imports of Indian goods.
- Global Context: The discussion comes as U.S. President Donald Trump prepares to impose reciprocal tariffs, reshaping global economic dynamics.
New Delhi: In a significant diplomatic gesture, Chinese President Xi Jinping spoke with Indian President Droupadi Murmu on April 1, 2025, to commemorate 75 years of India-China diplomatic relations. The leaders exchanged congratulatory messages and discussed ways to strengthen bilateral ties amidst shifting global economic and strategic landscapes.
This rare interaction between the Presidents of the world’s two most populous nations marks an important step in resetting relations after years of tension, including the 2020 border standoff in Ladakh. Xi described the relationship as a “Dragon-Elephant tango,” a metaphor for mutual cooperation and peaceful coexistence.
Strengthening Bilateral Relations
President Xi Jinping expressed China’s commitment to deepening communication and coordination with India on major international affairs. He emphasized that both nations, as ancient civilizations and key players in the Global South, share common goals of modernization and economic growth.
Indian President Droupadi Murmu reciprocated the sentiment, highlighting the importance of fostering trust and collaboration in various sectors. Both leaders acknowledged that their partnership could contribute significantly to global stability and prosperity.
Economic Cooperation Amid Trade Deficit
One of the key topics discussed was addressing the trade imbalance between India and China. In FY 2023-24, India’s exports to China stood at $16.65 billion, while imports from China reached $101.75 billion, resulting in a trade deficit exceeding $85 billion.
Ahead of U.S. President Donald Trump’s “Liberation Day” tariffs set to take effect on April 2, China has proposed measures to reduce this gap. Chinese Ambassador Xu Feiyang stated that Beijing is ready to import more Indian goods, signaling a shift toward greater trade cooperation. This move aligns with China’s broader strategy to strengthen ties with key partners amidst escalating U.S.-China trade tensions.
Global Trade Tensions
The conversation between Xi and Murmu gains added significance against the backdrop of U.S. President Donald Trump’s impending reciprocal tariffs. Set to be implemented on April 2, these tariffs could dramatically alter global trade dynamics by imposing higher import taxes on countries trading with the U.S., including China.
Economists warn that Trump’s policies may isolate the U.S., disrupt global supply chains, and trigger retaliatory measures from affected nations. Countries like Japan and South Korea are already exploring closer ties with Beijing, further complicating America’s strategic position.
Improved Border Relations
The dialogue also reflects progress in resolving longstanding border disputes between India and China. Following years of tension in Ladakh, both nations have taken steps toward peaceful resolution through diplomatic talks. Recent agreements include enhanced border management protocols and resumption of cross-border exchanges such as the Kailash Mansarovar Yatra.
Looking Ahead
The 75th anniversary of diplomatic relations presents an opportunity for India and China to redefine their partnership in a rapidly changing world order. Both nations have committed to enhancing strategic mutual trust, promoting economic cooperation, and ensuring peace along their shared borders.
As global trade tensions escalate under Trump’s tariff policies, the strengthened ties between India and China could pave the way for a more balanced and collaborative approach to international challenges. The “Dragon-Elephant tango” may indeed become a symbol of unity in an increasingly fragmented world.
