After finally saying goodbye to 2025, we should acknowledge some important events for the people of India and China, the two big neighbouring countries and ancient civilizations in Asia. It cannot be gainsaid that maintaining solid friendship best serves the fundamental interests between the two Asian neighbours which is essential for making this century the “Asian Century.” As Deng Xiaoping, chief architect of China's reform and opening-up policy, had long ago conveyed it to the then Indian Prime Minister Rajiv Gandhi in 1988, “No genuine Asian century would come without the development of China, India and other developing countries.” As a great visionary as Deng was, he must have sensed the enormous potential of two large Asian neighbours that owned more than half the world's wealth nearly three centuries ago.

On April 1, 2025, marking 75 years of diplomatic relations between China and India, Chinese President Xi Jinping sent a message to Indian President Droupadi Murmu, stating: “The development of China-India relations demonstrates that it is the right choice for China and India to be partners of mutual achievement and realize the “Dragon-Elephant Tango,” fully serving the fundamental interests of both countries and their peoples.” Indian leaders, including Prime Minister Narendra Modi, have also stressed the importance of mutual respect and cooperation between the two nations. Undoubtedly, realization of the Asian Century is inseparable from the stability of India-China relations.

President Xi’s sentiment was echoed by Chinese diplomatic officials. Recently, Chinese Consul General Xu Wei in Kolkata aptly noted in his article “A new step in the dragon-elephant tango” on December 9 (The Hindu): “Over the past 75 years, friendly cooperation has always been the mainstream of our bilateral relations.” Undoubtedly, the 75th anniversary is a day of great celebration. Over 2.8 billion Indian and Chinese people on either side of the Himalayas want a smoother path, pragmatic approach, and brighter future for India-China relations, despite diplomatic fluctuations.

China and India, the world's two largest developing countries with profound global influences, are navigating a critical juncture in their national development and rejuvenation. While China is advancing the great rejuvenation of the nation on all fronts through Chinese modernization, India is focused on realizing its ambitious "Viksit Bharat 2047" vision. In this context, development emerges as the defining common ground that binds these two great neighboring nations, a shared priority that underscores their collective quest for growth and rejuvenation.

As China prepares its 15th Five-Year Plan (2026-2030), the prospects for China-India cooperation look promising, with immense potential waiting to be tapped. Today, China and India have grown into the world’s second and fifth largest economies respectively. Cooperation between the two countries will not only boost their development, but also will contribute to peace, stability and prosperity in Asia and the wider world.

Growing Trade Volume

Despite the Galwan Valley clash in 2020, the positive momentum in Sino-Indian relations over the past few years has been truly heartening. President Xi Jinping and Prime Minister Narendra Modi held a landmark meeting in Tianjin on August 31, 2025 during the Shanghai Cooperation Organization Summit. It was Modi’s first visit to China in seven years. During their meeting, PM Modi spoke optimistically about India-China relations: “India and China are partners, not rivals. Our consensus far outweighs our disagreements. India is ready to view and develop bilateral ties from a long-term perspective.” He added that India-China cooperation could make the 21st century a genuine “Asian century” and boost multilateralism in international affairs. This meeting has taken the relationship between the two Asian giants to a new juncture.

It’s heartening to see that China has resumed the pilgrimage of Indian pilgrims to the sacred Mount Kailash and Lake Manasarovar in Southwest China’s Xizang Autonomous Region this year after a five-year break, and India has restarted the issuance of tourist visas to Chinese citizens suspended since 2020. Recently, several direct flights between the two countries have been restored. This development is expected to strengthen exchanges in people-to-people fields, as well as in trade, culture, and other areas.

No other countries come close to the trade dynamics between India and China. Despite U.S. President Donald Trump’s tariffs on both nations, the two countries recorded a staggering $127.63 billion trade volume between January and October this year—an 11% year-on-year increase. India’s exports to China have been particularly robust, with monthly shipments rising over 22% year-on-year since April, according to India’s Ministry of Commerce and Industry. A standout month was November 2025, when India’s merchandise exports to China surged 90% year-on-year, jumping by $1.05 billion. While India should monitor its trade deficit with China—which narrowed to $99.2 billion in FY2024/25—the country should avoid erecting protectionist barriers against Chinese investment.

As China advances its high-quality development and high-standard opening-up agenda under the 15th Five-Year Plan, India stands to benefit from broader markets, more stable supply chains, and closer trade ties. In August, the two countries agreed to resume border trade, which had been suspended since 2020. The India-China Business Summit 2025 was held in New Delhi in December. Notably, Chinese-linked EV brands like BYD, JSW-MG, and Volvo/Geely captured nearly a third of India’s passenger EV market as of October 2025, per the Federation of Automobile Dealers Association (FADA) data.

Momentum In Cultural Ties

In a game-changing move, India has recently cut red tape to speed up business visas for Chinese professionals, showcasing India's commitment to tapping into China's massive 18 trillion-dollar economy. This move will surely give a boost to trade and investment relations between the two Asian giants. China has welcomed India's move, describing it as a "positive" step that serves the common interests of both nations. “Easing cross-border travel serves the common interests of all parties. China will maintain communication and consultation with India to further facilitate people-to-people exchange,” Chinese Foreign Ministry spokesperson Guo Jiakun said on December 12.

In 2025, China-India cultural ties regained momentum amid improving bilateral relations. Chinese diplomatic missions in India played a key role. The spirit of mutual admiration shone at recent events – an international seminar at Visva-Bharati University, Santiniketan marking the centenary of Rabindranath Tagore’s 1924 visit to China and Dr. Dwarkanath Kotnis’ 83rd death anniversary, hosted by the Chinese Consulate General in Kolkata. Events like this highlight cultural and academic exchanges as pillars of the relationship.

The India-China relationship should continue to be cooperation-led, mutually beneficial, and complementary, featuring healthy competition and confrontation avoidance. As the world navigates a tumultuous era, India can capitalize on China's “high-quality development and high-level opening up”, prioritizing cooperation and partnership to drive mutual growth. Let's nurture the tree of China-India friendship, realizing the scenario of the “dragon and elephant dancing together”, bringing their people closer at heart. By working together in BRICS, the SCO, and the G20, they will build a community with a shared future, contributing to a more stable, prosperous, and harmonious world. The future beckons; it's time for these two Asian giants to take the lead.

(The author is founder and president, New Horizon Radio Listeners’ Club, a Sino-India friendship club based in West Bengal, India who focuses on China’s development, China-India relations, and China-U.S. relations. Views expressed are personal. He can be contacted at rabisankarbosu@gmail.com)