Modi, Xi shake hands, talk on sidelines of SCO Summit ahead of BRICS meet
The Indian Prime Minister and Chinese President Xi Jinping had a brief, informal interaction and conversation on the sidelines of the 26th SCO Heads of State Summit in Bishkek, Kyrgyzstan; no formal bilateral meeting had been scheduled.
The interaction comes amid a cautious normalisation in India-China relations following the 2020 military standoff in eastern Ladakh, with disengagement completed at multiple friction points along the Line of Actual Control (LAC).
Issues cited as likely to feature in the broader India-China engagement include the trade imbalance in China's favour, easing of investment restrictions, resumption/expansion of direct flights, and residual border tensions.
The contact carries added significance because India is set to host the 18th BRICS Summit in New Delhi on 12-13 September 2026, which Xi Jinping is expected to attend — his first visit to India in several years.
Special Representatives (SR) Mechanism on the India-China Boundary Question
The SR mechanism is the primary political-level channel for resolving the India-China boundary dispute, distinct from military-to-military or diplomatic Working Mechanism for Consultation and Coordination (WMCC) talks.
High-level contact at multilateral summits (SCO, BRICS) typically runs parallel to and reinforces the SR-level track, signalling political will to sustain the boundary dialogue even without a full bilateral summit.
LAC Disengagement and Border Management Framework
The Line of Actual Control (LAC) — the de facto boundary between India and China — is distinct from the Line of Control (LoC, with Pakistan) and the International Border (IB, a settled and demarcated boundary). The LAC is not mutually delineated, which is a root cause of recurring stand-offs.
Key Details
- Following the 2020 Galwan Valley clash, both militaries disengaged from several friction points (2020-2021); a further disengagement agreement covering the last two outstanding points, Depsang and Demchok in eastern Ladakh, was reached on 21 October 2024.
- The October 2024 agreement restored patrolling rights to pre-2020 (April 2020) levels at Depsang and Demchok, with an understanding on advance communication before patrols in sensitive areas; a patrolling moratorium continues at Galwan and Pangong Tso.
- Confidence-Building Measures (CBMs) under the 1993, 1996 and 2005 India-China border agreements remain the legal framework governing troop levels, patrolling and communication along the LAC.
The October 2024 disengagement is the direct enabler of the current phase of high-level contact; normalisation of the border situation is treated by both sides as a precondition for broader economic and diplomatic engagement.
India-China Trade Relations
Trade imbalance is one of the most persistent points of friction in the bilateral relationship, driven by India's heavy import dependence on Chinese electronics, batteries, active pharmaceutical ingredients and solar components.
Trade imbalance, investment norms (Chinese FDI in India is subject to enhanced government-approval screening since 2020) and flight resumption are the concrete economic items reportedly on the agenda alongside the political/border track — both linked to the broader question of how far normalisation can proceed without resolving the underlying boundary dispute.
BRICS and India's 2026 Chairship
BRICS is a grouping of major emerging economies that has evolved from an informal caucus into an institutionalised platform with its own expansion process, separate from the SCO.
Key Details
- Originated as "BRIC" (Brazil, Russia, India, China) with the first summit in 2009; South Africa joined in 2010, forming BRICS.
- Expanded in 2024-25 to admit Egypt, Ethiopia, Iran and the UAE (2024) and Indonesia (2025), taking total membership to ten; Saudi Arabia was invited but has not formally joined as a full member, and Argentina declined its invitation.
- India assumed its BRICS chairship for 2026 on 1 January 2026, under the theme "Building for Resilience, Innovation, Cooperation and Sustainability," and will host the 18th BRICS Summit at Bharat Mandapam, New Delhi, on 12-13 September 2026.
The Bishkek sideline interaction is being read as a signal of the tenor in which Xi Jinping's anticipated visit to the India-hosted BRICS Summit — his first to India in years — may unfold.
- SR mechanism on India-China boundary established: 2003; 2005 Agreement on Political Parameters was its first major output
- LAC disengagement at Depsang and Demchok completed: agreement of 21 October 2024, patrolling restored to pre-April 2020 levels
- India-China trade deficit (FY2024-25): approximately $99.2 billion; total bilateral trade approximately $127.7 billion
- BRICS founded 2009 (BRIC) / South Africa added 2010; expanded 2024-25 to 10 members (Egypt, Ethiopia, Iran, UAE, Indonesia)
- India's BRICS chairship: 1 January 2026 to the 18th Summit, 12-13 September 2026, New Delhi
- SCO summit venue for this interaction: Bishkek, Kyrgyzstan, 26th SCO Heads of State Summit