The meeting between Chinese President Xi Jinping and Indian Prime Minister Narendra Modi over the weekend reportedly went without a hitch as both sides apparently avoided the controversial topic of India's territorial dispute with Pakistan.
According to local media reports, both leaders talked mostly about improving the trade relations between both nations more than anything else.
Both leaders met at the coastal town of Mamallapuram in southern India on Saturday. The leaders of two of the world's most populous countries intentionally avoided talking about India's territorial quarrel with Pakistan, a topic that could have immediately soured the talks.
Prior to the summit, Chinese reports had mentioned that Xi was supportive of Pakistan's claims in Kashmir, a region that is also being claimed by India. Fortunately, Modi had chosen not to bring up the topic during his meeting with Xi. The Indian leader instead chose to discuss the country's issues pertaining to investment and trade.
The Indian government had previously made it clear that it was willing to work with China on various collaborative projects. However, the country has expressed some concerns over its partnership with China, particular the standing trade deficit between both nations.
As of this year, the deficit stands at around $53.57 billion in China's favor, India's largest trade imbalance in its partnerships with other countries. This year's figure is, of course, a vast improvement from the $63.05 billion trade deficit recorded last year.
According to Indian Foreign Secretary Vijay Gokhale, the topic of the imbalance was discussed in length during the meeting. China is apparently willing to try to look for ways to improve the numbers and bring balance to the trade between both nations. In the past two years, India has seen an increasing amount of Chinese investments, particularly in more advanced sectors such as tech, biotech, and manufacturing.
China does recognize that there is great potential in the partnership between both nations. Both leaders reportedly hope to establish a more stable economic relationship amid global uncertainty, fueled mostly by China's ongoing trade dispute with the United States.
While India may be bolstering its ties with China, the country is still taking advantage of its partnership with the United States.
Economists have stated that India sees big potential in partnering with China for industries such as manufacturing, trade, and environmental concerns. However, the country also stated that it does have a "natural alignment" with the United States when it comes to issues such as education and defense.
