At SCO Meet, India-China Reiterate Need To Boost Economic Ties & Trust. The Question Is How?

This SCO summit, held amid rising trade uncertainties, has been closely monitored with a focus on India, China, and Russia. What are the key takeaways?

The SCO’s prominence is on the rise, and it is none other than the Western bloc that has led to this dynamic. Within the SCO, India has been cautious in developing its own constituency by garnering support for extremism and terrorism, with mixed results. The SCO summit in Tianjin was a milestone in several ways. The Chinese side echoed India’s concerns over cross-border terrorism.

China has addressed several concerns that India has been raising. How do you read this situation?

It underscored China's confidence in dealing with the tariff and expansionist policies of the West. Most importantly, in the past year, China has been forthcoming in addressing India’s concerns to come on board. At the same time, India also showed interest in forwarding the collective interest. This will also make most economic leveraging easier and more feasible. Susceptible to Western sanctions and anxieties, India was selective in adopting some of these, but the summit-level talks will pave the way for a consultative approach to realise these goals. 

Can India rely on China in the future?

The transition in India-China relations will be different from the earlier two phases — pre-1962 and post-2020 — as both countries weigh their options carefully, take time, isolate, and engage on matters of mutual concern. This has been happening over the past two years.

India, in particular, took considerable time in laying out its priorities and signalled its intent on certain preconditions. Going forward, I see both countries micro-isolating on bilateral matters, building equilateral relationships with stakeholders like Russia, and developing models of 'cantilever diplomacy'. 

⁠Will normalisation in the visa regime help in supply chain management?

Yes, significantly. Access has been the key to managing the global supply chain and production. India-China relations have been an exception to this. The availability of a visa will be crucial in maintaining these interdependencies. The education and travel connections will follow suit, but the visa relaxations will help facilitate business and trade relations. 

⁠What would China look for from India?

Among many other things, here are a few: First, India remains neutral and does not pivot towards America. Second, India continues to open up and import more from Chinese suppliers. Third, India opens its market to Chinese investors and also discusses further synergies between the two sides. Fourth, India continues to engage with China, while Beijing is willing to set aside Pakistan’s interests for the moment. Fifth, China hopes India will echo its global South and multilateral propositions at international forums. 

⁠What happens to the existing border-related issues?

The boundary issue is the central concern of both sides. Pointed and isolated discussion points will be the key to leading the consensus in the coming rounds. Such steps would help build trust and facilitate further progress. As a result, this phase will see more emphasis on identifying and contesting physical points, as well as tools to settle and navigate the process to reach them. Each of these will require tremendous coordination on both sides.