PM Modi calls for historic reset: India-China can steady global order

New Delhi: Prime Minister Narendra Modi has urged India and China to work together to bring stability to the global economic order, stressing that cooperation between the two Asian giants is vital amid the uncertainty caused by U.S. tariff policies.

Speaking during his Japan visit, Modi said the world’s two largest developing economies must ensure their ties remain stable and constructive for the sake of regional peace and global prosperity. “Looking at the current instability in the global economy, India and China must work together for stability,” he told Japanese daily Yomiuri Shimbun.

The Prime Minister underlined that India is ready to move ahead with China on the basis of mutual respect, mutual interest and mutual sensitivity. He added that dialogue is essential to address development challenges and build a long-term strategic outlook between the neighbours.

Positive signs in ties

Modi pointed out that relations with China have shown “stability and positivity” in recent months. He said these relations are not just important for the two nations but also for Asia and the world. “If India and China maintain stable and friendly relations, it will impact peace and prosperity across the region and the world,” he remarked.

He also noted that the upcoming Shanghai Cooperation Organisation (SCO) summit in Tianjin would serve as a key platform for India and China to discuss shared interests, regional stability and global challenges.

U.S. tariffs loom large

The Prime Minister’s comments come against the backdrop of rising trade tensions with Washington. U.S. President Donald Trump has imposed a 50% tariff on Indian goods, split between a 25% import duty and an additional 25% on oil trade with Russia. On Chinese goods, tariffs have gone up to 145%, although the rollout has been deferred for now.

Modi to meet Xi in China on August 31

After concluding his Japan visit, Modi will travel to China on August 31 at the invitation of President Xi Jinping to attend the SCO summit. Officials expect discussions on economic cooperation, security issues and regional challenges to dominate the agenda.

Relations between India and China have been strained since the Galwan clashes, but both sides have in recent months intensified efforts to bring ties back on track. Modi said the renewed diplomatic engagement reflects a “commitment to reduce old disputes and focus on common ground”.