INDIA CHINA Connect

China’s 15th Five-Year Plan (2026) marks a shift from high-speed to high-quality growth, targeting 4.5–5% with reform, innovation, and sustainability toward 2035 goals. It accelerates AI-driven smart economy transformation, expands global opening-up, and strengthens China-India ties, highlighted by record $155.6 billion trade and BRICS cooperation, signaling modernization momentum and new business opportunities.

Wang Yi urged India and China to act as partners, not rivals, highlighting improved ties after Modi–Xi meetings in Kazan and Tianjin. Trade and exchanges hit new highs, with emphasis on border peace, economic growth, and regional stability. He called for cooperation within BRICS and the Global South, as relations recover from Ladakh tensions, signaling renewed diplomatic momentum.

India-China ties improved after the October 2024 border agreement, with Modi-Xi meetings restoring dialogue. Normalization includes resumed flights, tourist visas, and the Kailash Mansarovar Yatra. The government may ease Press Note 3 restrictions by introducing a ‘de-minimis’ threshold for smaller investments. Strategically, this aligns with global “China Plus One” manufacturing strategies, balancing diplomacy and economic opportunity.

Chinese Ambassador Xu Feihong signaled renewed momentum in India–China ties during Spring Festival events, emphasizing deep civilizational links and expanding academic exchanges. He noted shared values of harmony, self-reliance, and support for the Global South. Bilateral trade reached a record $155.6 billion in 2025, while resumed travel, pilgrimages, and flights strengthened people-to-people connections.