The India-China ties have had different flavours in 2025. The relations also evolved into a newer phases between 2000 and 2025 -- that is during the last 25 years.
Normal interaction and inevitable showdown .... accompany each other due to historical as well as geopolitical reasons.
As a matter of fact, efforts have been made from both sides to mark a 'shift' -- from outright hostility toward calibrated engagement.
Both seem to realise the utter importance of complex mutual coexistence.
The RIC --- Russia-India-China partnership also made some progress.
The calendar year 2025 marked the 75th anniversary of diplomatic relations, prompting commemorative events and renewed dialogue to revive relations.
In essence, 2025 represented a push for normalization and pragmatic cooperation, but within a framework where both countries acknowledge unresolved challenges, particularly along the Line of Actual Control (LAC).
( Russian President Vladimir Putin and PM Narendra Modi's attendance of the key meeting with Xi Jinping provided the opportunity for Indian PM and Xi to demonstrate their continuing support for Vladimir Putin.
But RIC friendship shows the three are united by little more than their opposition to the current US-dominated order. )
Xi Jining has actually moved too slowly on the de-escalation of troops at the standoff points along the LAC with India.
Prime Minister Modi met with President Xi Jinping on the sidelines of the SCO Summit in August, noting positive momentum and reaffirming development partnership goals.
Progress was made in border management, with agreements to disengage troops in some areas and establish new mechanisms for border consultation (WMCC).
Efforts focused on reducing the trade deficit, reopening trade passes (Lipulekh, Shipki La, Nathu La), and resuming direct flights, boosting tourism and trade.
Plans were underway to resume the Kailash Mansarovar Yatra and restart the High-Level Mechanism for People-to-People Exchanges in 2026.
India continued its policy of strategic autonomy, balancing economic ties with China with deeper partnerships with other global powers.
As year 2025 draws to a close amid global turbulence, China's diplomacy has sent a clear signal: its neighborhood has become an anchor of its foreign policy.
From intensive head-of-state diplomacy and multilateral summits to crisis mediation and economic cooperation, Beijing has prioritized stability, development and partnership with surrounding countries, says 'Global Times'.
Paradox : Reset as a pragmatic attempt
For Indian businesses, the 2025 thaw presented both opportunities and persistent challenges.
Industries reliant on Chinese inputs, electronics manufacturing, renewable energy, electric vehicles, and pharmaceuticals, benefited from restored supply chains and reduced costs as the year progressed.
Analysts characterized this reset as a pragmatic attempt to balance economic necessity with strategic caution. However, the persistent trade deficit and sluggish export diversification dampened optimism as the year wore on. The renewed engagement represented calculated re-entry rather than a return to pre-2020 dynamics.
Indian policymakers demonstrated throughout the year that they recognized economic interdependence could not supersede strategic vulnerability, particularly when trade flows remained so heavily tilted in China’s favour.
The most crucial and sensitive issue, the disputed boundary, saw only partial resolution.
While late 2024 brought a troop withdrawal agreement covering specific friction points like Depsang and Demchok, the broader territorial dispute along the Line of Actual Control continued to simmer throughout 2025.
Multiple standoff locations persisted, representing latent flashpoints that could rapidly derail diplomatic progress.
For India’s strategic establishment, 2025 confirmed the need for clear-eyed caution. Normalization of economic and diplomatic relations could not be conflated with genuine reconciliation.
The boundary issue remained the fundamental constraint on how far bilateral ties could deepen, serving as a constant reminder of the fragility underlying current engagement.
Additional info/analysis
Donald Trump’s America-first foreign policy has undermined relationships in Europe and Asia that underpinned the liberal international order and secured US dominance.
How will this unfold remains to be seen.
There is another element to look at especially from New Delhi's strategic thinking.
When two of China's neighbors, Cambodia and Thailand became mired in a border clash, foreign ministers from both countries called Chinese Foreign Minister Wang Yi on December 18 and briefed him on the latest developments regarding the conflict along the Cambodia-Thailand border and expressed their willingness to de-escalate tensions and bring about a ceasefire.
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Looking back at 2025,
--- Economic pragmatism facilitated supply chain cooperation and cross-border commerce.
The year 2025 also meant -- tactical adjustment rather than strategic transformation.
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True measure lies in 'outcomes' rather than diplomatic rhetoric.
Trade flows showed continued growth but deepening imbalance.
ends
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