Archive · 10 Sep 2026
Xi India Visit May Ease Tensions, But Business Ties Struggle
China’s leader Xi Jinping may visit India for the BRICS summit.
China has not officially confirmed the visit or whether Xi will meet India’s leader, Narendra Modi.
Such a meeting could help improve relations between the two countries.
India and China have been cautious toward each other, especially after a deadly 2020 border clash.
India has recently allowed some Chinese investment projects to move forward.
However, some large Chinese companies remain hesitant to invest in India.
Businesses also report problems getting visas and receiving equipment from China.
Trade has grown strongly, but rules and distrust still make cooperation difficult.
Xi Jinping is widely expected to attend the BRICS summit in New Delhi, but Beijing has not confirmed his visit or a meeting with Narendra Modi.
A Modi-Xi meeting could influence the future direction of India-China relations and help align political and economic interests.
India has eased some restrictions on Chinese investment and approved a Dixon Technologies-Vivo Mobile manufacturing venture.
Chinese companies including BYD and Great Wall Motor have not revived planned Indian investments amid regulatory scrutiny.
Visa difficulties, customs delays and restrictions on Chinese equipment continue to hinder trade and infrastructure projects.
- Who
- Chinese President Xi Jinping, Indian Prime Minister Narendra Modi, and businesses and officials in India and China.
- What
- Xi’s possible India visit could support a diplomatic thaw, while investment, visa and equipment barriers continue to constrain commercial ties.
- When
- This week, less than 48 hours before the BRICS summit; Beijing had not confirmed Xi’s visit as of September 10.
- Where
- New Delhi, India, and in commercial dealings between India and China.
- Why
- A Modi-Xi meeting could improve bilateral relations and align economic interests, but distrust, regulations and trade dependencies continue to create obstacles.
Diplomatic and Economic Opening
Continuing Strategic Caution
Prospects for improved relations
Diplomatic and Economic Opening
Chinese officials describe India and China as partners rather than competitors, and analysts say a Modi-Xi meeting could help align political and economic interests.
Continuing Strategic Caution
Analysts say the trust deficit remains high and that dramatic progress is unlikely without clearer evidence of changed policies.
Investment cooperation
Diplomatic and Economic Opening
India has eased some investment restrictions and approved projects such as the Dixon Technologies-Vivo Mobile manufacturing venture, indicating limited economic reopening.
Continuing Strategic Caution
Major Chinese companies including BYD and Great Wall Motor shelved planned investments, while scrutiny by both governments continues to discourage new projects.
Trade and technology access
Diplomatic and Economic Opening
Resumed direct flights, eased visa procedures and leader-level discussions could create opportunities for greater commercial cooperation.
Continuing Strategic Caution
Visa problems, customs holds and restrictions on Chinese equipment suggest that trade and technology dependence remain sources of leverage and friction.
- Expected visit
- Xi Jinping is widely expected to attend the annual BRICS summit in New Delhi, although Beijing said it had no official information confirming his plans.
- Potential meeting
- There was no confirmation that Xi would meet Narendra Modi; analysts said such a meeting could shape future bilateral ties.
- First India visit in seven years
- If it takes place, the trip would be Xi’s first visit to India in seven years.
- 2020 border clash
- The 2020 clash killed 20 Indian soldiers; accounts differed on Chinese casualties, with one report saying four and another saying the number was unknown.
- Investment policy
- India eased some restrictions on Chinese investment in March, focusing on electronics, capital goods and solar cells.
- Approved venture
- India approved a manufacturing venture between Dixon Technologies and Chinese smartphone maker Vivo Mobile.
- Trade growth
- Bilateral trade rose 12.4% last year to a reported record of $155 billion, according to Chinese customs data.
