Indian Prime Minister Narendra Modi finally meet with the Chinese President Xi Jinping on the sidelines of the Shanghai Cooperation Organisation (SCO) Summit in Tianjin, China.
This was Modi's first visit to China since 2018 and after the deadly border clash in 2020.
The meeting which last for about 40 minutes, focused on resetting ties amid global pressures, especially from the U.S. through the tariffs under President Donald Trump, which imposed 50% duties on Indian goods for purchasing Russian oil, and over 100% on Chinese goods base on their US China trade war.
Modi emphasized mutual trust, respect, and announce the resumption of direct flights suspended since 2020 due to the boarder tension and the Kailash Mansarovar Yatra pilgrimage.
Xi described India and China as "cooperation partners, not rivals," highlighting their roles as ancient civilizations and Global South leaders.
Both leaders agreed on border management protocols, with Modi noting an "atmosphere of peace and stability" along the Line of Actual Control (LAC).
How does this influence the Global Economy
The Modi-Xi meeting could significantly influence the global economy by fostering stability between the world's second and soon coming third-largest (soon coming third largest according to IMF, they will remove Germany and pass Japan from 5 to 3 by end of 2025 or 2026) economies, which together represent nearly 40 to 45% of the global population and drive much of Asia's growth.
As Modi and Xi meets, this means there's a more powerful future in BRICS, as a united front might focus on accelerating de-dollarization efforts, promoting local currency settlements and RMB internationalization, potentially reshaping global trade flows and weakening the U.S. dollar's dominance.
Impact on Global South initiatives which focus on economic integration, sustainable development, financial reform, and cultural exchange, these meeting could boost Global South development through enhanced collaboration under SCO and BRICS. By leveraging China's vast manufacturing strength, India's powerful services sector, and Russia's resources, these initiatives aim to boost economic growth.
