India presses China to tackle issues of market access, trade balance

Both countries plan to resume border trade from Aug 1 after a six-year suspension

Indian External Affairs Minister S Jaishankar speaks as he attends the ASEAN Post-Ministerial Conference with India during the ASEAN Foreign Ministers' Meeting at the Philippine International Convention Center in Pasay, Metro Manila, Philippines, Jul 22, 2026. Ezra Acayan/Pool via REUTERS

Indian foreign minister S Jaishankar said on Wednesday he told his Chinese counterpart Wang Yi that the neighbours should tackle key aspects of relations, such as fair market access and trade balance, in New Delhi's effort to repair ties with Beijing.

Relations between the nuclear-armed nations improved in 2024, ending years of ‌friction dating from a border clash in 2020, after talks between Prime Minister Narendra Modi and Chinese President Xi Jinping in October 2024.

"There are also concerns about predictability of supply chains ... We also need to agree on the meetings of various mechanisms and platforms as per our mutual priorities," Jaishankar said on X.

"Peace and tranquility in the border areas is obviously the prerequisite for normal ties," Jaishankar added after the meeting, held on the sidelines of a regional gathering in the Philippine capital of Manila.

"Since October 2024, both sides have engaged to ensure that important objective. This will continue to need our constant attention."

In a readout that struck a more positive tone, Wang commended joint efforts between both countries that have paved the way for the gradual resumption of institutional exchanges and maintaining peace at the border areas.

Bilateral trade volume has also reached a new high, the readout from his ministry cited Wang as saying.

Wang said China is willing to engage in more high-level exchanges, step up economic, trade and media cooperation, as well as "promote correct mutual understanding" between both countries' peoples.

India and China have resumed direct flights and New Delhi has cut red tape to speed up approvals of business visas for Chinese professionals since October 2024.

Both will also resume border trade from Aug 1, following a six-year gap, domestic media said.

India’s $132 billion worth of imports from China in fiscal year 2025/26 were its highest from any nation, with a deficit of more than $100 billion in their total trade of $151.10 billion.

India, which imports inputs and machinery critical for its factories, eased curbs this year on Chinese investments in some industries, a major step towards rebuilding ties with Beijing.

In 2020, New Delhi tightened scrutiny of investments from Chinese companies, as relations soured after their troops clashed on their largely undemarcated Himalayan frontier, killing 20 Indian and four Chinese soldiers.