Xi's India visit to help diplomatic thaw, but business ties bound by suspicion - Reuters

**New Delhi –** Chinese President Xi Jinping arrived in India on the opening day of the BRICS summit, marking the first top‑level visit by a Chinese leader since the deadly Galwan Valley clash in June 2020. The two‑day summit provides a diplomatic backdrop for a scheduled Modi‑Xi bilateral meeting on Saturday, the first such encounter on Indian soil in six years. Both leaders framed the talks as a “new chapter” in their relationship, emphasizing the need to manage border disputes, cooperate on climate change and coordinate on multilateral institutions, while avoiding any “political grandstanding” that could inflame nationalist sentiment at home.

Despite the diplomatic overture, commercial ties remain mired in mutual suspicion. Reuters notes that Indian firms continue to face barriers to market access in China, particularly in high‑technology sectors, while Chinese investors are wary of India’s tighter foreign‑investment rules and heightened scrutiny of strategic assets. Nevertheless, ThePrint points out that India’s strong fiscal position and relatively insulated bond market make it less vulnerable to the capital‑flight risks that have rattled other emerging economies in recent weeks. Business delegations accompanying the leaders are expected to probe opportunities in renewable energy, pharmaceuticals and digital infrastructure, but they will do so under a cloud of heightened due‑diligence and geopolitical caution.

Analysts see the BRICS platform as a testing ground for a broader “India‑China reset.” Chatham House argues that the summit could cement a pragmatic, issue‑by‑issue engagement that sidesteps the more contentious security agenda, while still allowing both capitals to showcase a united front against perceived Western pressure. Yet the underlying strategic rivalry—manifested in border stand‑offs, competition for influence in South Asia and divergent alignments with the United States—means that any deepening of economic interdependence will likely remain circumscribed by political mistrust. Observers will watch closely whether concrete trade accords emerge or whether the talks simply reaffirm a fragile status quo.