Prime Minister Narendra Modi’s conversation with podcaster Lex Fridman has highlighted India’s proactive role in fostering improved ties with China. Modi emphasized historical connections, advocating “healthy competition” while avoiding conflict. He expressed optimism after progress in border stability following talks with President Xi Jinping. China’s media and officials praised Modi’s commitment to dialogue and collaboration. Amid global trade shifts, India is addressing its trade imbalance through initiatives like "Make in India" and exploring Chinese investments, signaling a promising path for bilateral relations and economic growth.
Prime Minister Narendra Modi's recent conversation with renowned MIT researcher and podcaster Lex Fridman has garnered widespread attention, showcasing India's proactive role in fostering a positive shift in India-China relations. During the three-hour discussion, PM Modi shared his perspectives on the importance of fostering "healthy and natural" competition between the two nations while preventing differences from escalating into disputes. His remarks have garnered a warm response from China, signaling a potential thaw in a historically complex relationship.
In the podcast, Modi emphasized the deep cultural and historical ties shared by India and China, noting that both countries have "learned from each other for centuries." He spoke of their shared legacy as economic powerhouses, once accounting for over 50% of the global GDP, and stressed the need for dialogue over discord. Referring to the recent progress in bilateral relations, Modi acknowledged past tensions, including the 2020 border standoff, but expressed optimism about the future. "After my meeting with President Xi, we have seen a return to normalcy at the border. We are working to restore conditions to how they were before 2020," he said.
Modi's efforts to restore stability have been recognized by Chinese media and officials. The Global Times, a publication linked to the Chinese Communist Party, praised Modi's commitment to dialogue and cooperation. Experts have interpreted his comments as a pragmatic approach to advancing India-China relations. Qian Feng, from Tsinghua University's National Strategy Institute, highlighted the importance of the Kazan BRICS Summit, where Modi and President Xi Jinping met in October 2024, in setting the stage for improved ties.
China's Foreign Minister Wang Yi echoed this sentiment, advocating for mutual support and collaboration. "China and India are each other's largest neighbors. A cooperative pas de deux of the dragon and the elephant is the only right choice for both sides," Wang said. He emphasized that both nations, as leading developing countries, share the responsibility of accelerating growth and revitalization.
The improving ties come at a time of shifting global dynamics. Amid ongoing trade tensions involving the United States and other nations, India and China appear to recognize the strategic importance of working together. This collaboration is evident in recent diplomatic engagements, including National Security Advisor Ajit Doval's visit to Beijing and Foreign Secretary Vikram Misri's talks with Chinese officials. These efforts have resulted in positive developments, such as the resumption of the Kailash Mansarovar Yatra in 2025.
Opportunities lie ahead as India works to address its trade imbalance with China, which stood at $85.1 billion in the fiscal year 2024. The "Make in India" initiative is paving the way for reducing reliance on imports, particularly intermediate goods essential for manufacturing and renewable energy sectors, while creating a foundation for greater self-reliance and economic growth. The 2024 Economic Survey suggested addressing this imbalance by encouraging Chinese foreign direct investment (FDI). "India faces two choices: integrate into China's supply chain or promote FDI from China. Among these, focusing on FDI seems more promising for boosting India's exports," the survey noted.
At the same time, India remains cautious. Foreign Minister S. Jaishankar has underscored the need to rebuild mutual trust and maintain border peace. Mao Ning, a spokesperson for China’s foreign ministry, acknowledged Modi’s positive remarks, stating that the recent exchanges between the two leaders have offered "strategic guidance" for bilateral ties. Ning emphasized the importance of mutual understanding and support, noting that cooperation aligns with the interests of their combined 2.8 billion people and contributes to global peace and stability.
As both nations navigate this intricate dance of competition and collaboration, the path forward seems promising. By prioritizing dialogue and emphasizing shared goals, India and China have an opportunity to not only strengthen their relationship but also contribute to a more stable and prosperous global future.
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