India and China should address key economic issues, including fair market access, trade imbalances and supply chain stability, Indian Foreign Minister S. Jaishankar said on Wednesday, as New Delhi continues efforts to rebuild ties with Beijing.

Jaishankar made the comments after meeting his Chinese counterpart Wang Yi on the sidelines of a regional gathering in Manila, the Philippines.

"There are also concerns about predictability of supply chains... We also need to agree on the meetings of various mechanisms and platforms as per our mutual priorities," Jaishankar said in a post on X.

He added that maintaining peace and stability along the disputed border remains essential for improving bilateral relations.

"Peace and tranquility in the border areas is obviously the prerequisite for normal ties," Jaishankar said.

"Since October 2024, both sides have engaged to ensure that important objective. This will continue to need our constant attention."

Relations improve after years of border tensions

Relations between the two nuclear-armed neighbours began improving in 2024 following a meeting between Indian Prime Minister Narendra Modi and Chinese President Xi Jinping in October.

The talks helped ease tensions that had persisted since a deadly border clash in 2020 along the largely undemarcated Himalayan frontier. The confrontation left 20 Indian and four Chinese soldiers dead.

Following the diplomatic engagement, both countries resumed direct flights and India eased approval procedures for business visas for Chinese professionals.

Domestic media also reported that border trade between the two countries is expected to resume from 1 August, after a six-year suspension.

Trade imbalance remains a major challenge

Despite recent diplomatic progress, economic tensions remain a key issue between New Delhi and Beijing.

China remains one of India's largest trading partners, with Indian imports from China reaching a record $132 billion in the 2025/26 financial year. The overall trade volume stood at $151.10 billion, with India's trade deficit exceeding $100 billion.

India relies heavily on Chinese imports for industrial machinery, components and other inputs needed for manufacturing.

Earlier this year, New Delhi eased some restrictions on Chinese investments in selected sectors, marking a significant step towards restoring economic cooperation.

Both sides seek cautious normalisation

While India and China have taken steps to stabilise relations, disagreements over trade, investment and border security continue to shape ties.

Officials from both countries have stressed that lasting improvement will depend on maintaining calm along the frontier while expanding cooperation in areas of mutual interest.

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