Chinese President Xi Jinping will visit India on September 12-13. The Chinese Foreign Ministry announced on the 10th that Xi will attend the 18th BRICS summit in New Delhi at the invitation of Indian Prime Minister Narendra Modi. This marks Xi's first visit to India in seven years, and it is particularly significant as it is his first trip since the clash between Chinese and Indian troops in the Galwan Valley in 2020, raising questions about a potential turning point in bilateral relations.
During the visit, Xi is expected to hold talks with Modi. The main topics of discussion will focus on four key areas. The first is the border issue. Relations between the two countries deteriorated sharply after the 2020 clash, but there have been efforts to reduce military tensions since last year. India and China have been negotiating to prevent troop clashes along the Line of Actual Control (LAC). Indian media anticipate that the summit will address recent developments in border negotiations, troop deployments, and border management systems.
The second area of focus is the restoration of economic cooperation. While trade between the two nations is recovering, there remains significant distrust regarding investments and business operations due to India's security reviews of Chinese companies, delays in visa issuance, and regulatory issues. India may push for expanded market access for Chinese products and a reduction in trade deficits. Conversely, China is likely to request that India ease investment restrictions on Chinese firms and improve visa and customs processes. Indian media have suggested the possibility of launching a 'strategic economic dialogue' platform between the two countries.
The third topic is enhancing cooperation as members of the Global South. Chinese state media highlighted Xi's visit as an opportunity to promote BRICS as a platform for joint development and reform of international governance. This includes discussions on IMF shareholding and World Bank governance reform, issues linked to global multipolarity. If the two leaders present a united front on these matters, it could signal a coordinated effort to counterbalance the United States. For Xi, who is set to visit the U.S. on the 24th, this could represent a significant political maneuver.
The fourth area of discussion will be cooperation within BRICS, particularly regarding direct payment methods that exclude the dollar. India is expected to advocate for connecting central bank digital currencies (CBDCs) among member countries to facilitate cross-border payments during the summit. For China, which is promoting the expansion of the digital yuan, there is little reason to oppose this initiative. However, India remains cautious about a China-centric financial order and is believed to prefer cooperation at the level of payment system integration rather than a joint currency to replace the dollar.
On the 10th, the second BRICS finance ministers and central bank governors meeting took place in Mumbai, where participants discussed various topics, including the global economic situation, international financial governance, the BRICS contingency reserve fund, cross-border payment systems, fintech, and sustainable finance.
Additionally, global issues such as the situation in the Middle East and the war in Ukraine are expected to be on the agenda for the Xi-Modi summit. If the two leaders can reach concrete agreements on border stability, normalization of visas and flights, Chinese investment, and trade expansion, it could signal the most significant improvement in China-India relations since the 2020 Galwan clash. Furthermore, if they present a unified stance on direct currency payments and global multipolarity, it could enhance the significance of their cooperation.
* This article has been translated by AI.
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