India-China Bilateral Trade Reaches Record $155 Billion: A Reset and Fresh Start for Both Countries
Commerce ties between India and China have reached a significant milestone in 2025, with bilateral trade soaring to a record high of $155 billion. This marks an impressive year-on-year growth of over 12%, as reported by Chinese Ambassador Xu Feihong. Speaking at a gathering to celebrate the Chinese New Year, Xu expressed China’s support for India’s BRICS presidency and emphasized the importance of enhancing multilateral coordination. He also highlighted the successful meeting between Prime Minister Narendra Modi and President Xi Jinping last August as a pivotal moment in strengthening relations between the two nations.
Record-Breaking Trade Figures
In 2025, the trade relationship between India and China achieved a remarkable milestone, with bilateral trade reaching $155.6 billion. This figure represents a year-on-year growth of more than 12%, showcasing the resilience and potential of economic cooperation between the two countries. Ambassador Xu Feihong noted that India’s exports to China also saw a significant increase, rising by 9.7% during the year. This growth underscores the strong potential for further collaboration in various sectors, indicating a positive trajectory for future trade relations.
Strengthening Diplomatic Ties
Ambassador Xu highlighted the importance of diplomatic engagements in improving relations between India and China. He referred to the successful meeting between Prime Minister Modi and President Xi Jinping in Tianjin last August as a turning point. This interaction was described as a “reset and fresh start” for the bilateral relationship, leading to increased frequency in interactions at various levels. The ambassador emphasized that these diplomatic efforts have paved the way for enhanced cooperation, particularly in the areas of economic and trade relations.
Shared Development Goals
During his address, Ambassador Xu discussed the alignment of development priorities between China and India. He noted that China’s push for self-reliance resonates with India’s Atmanirbhar Bharat initiative. Furthermore, he drew parallels between the two nations’ global outlooks, stating that China’s vision of a “world of great harmony” aligns with India’s philosophy of Vasudhaiva Kutumbakam, which translates to “the world is one family.” Xu expressed China’s readiness to collaborate with India, emphasizing the importance of drawing wisdom from traditional cultures to achieve mutual benefits and win-win outcomes.
Recent Improvements in Relations
The relationship between India and China has seen notable improvements in recent months, particularly following efforts to mend ties that were strained after the June 2020 Galwan Valley clashes. The prolonged military standoff, which significantly impacted bilateral relations, came to an effective end in October 2024. As both nations continue to engage in dialogue and cooperation, the recent trade figures and diplomatic interactions signal a positive shift towards a more collaborative future.
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