“Stabilising the relationship is the first step,” Leung said, stressing that ongoing border tensions should not be allowed to escalate. “These disputes have been poisoning the relationship over the past couple of years and do not make much sense, as they have been long-standing. It’s important to put these differences aside and focus on a more cooperative relationship.”
Leung further noted that normalising India-China ties is vital to maintaining balance in the global economy. “There are lots of areas where both countries can partner, particularly in climate change, green economies, and development strategies for the Global South,” he said. “Such cooperation can ensure a stable and interconnected world order.”
A changing perception of the United States’ global role is at the heart of these shifting dynamics. Leung argued that many countries no longer see the US as a reliable ally, as it adopts increasingly protectionist policies. “The whole world order has now been upended, and the cards are being reshuffled. The United States is imposing huge tariffs and being quite antagonistic to some of its closest allies and neighbours,” he explained. “With the rise of the Global South, the world is becoming more focused on where the markets are.”Against this backdrop, Leung praised Prime Minister Narendra Modi’s recent overture to China, calling it a “wise” move amid the ongoing global realignment. “It’s no surprise that Prime Minister Modi wants to recalibrate India’s relationship with China—not by forming a solid bloc, because the idea of blocs doesn’t make sense anymore, but by seeking pragmatic engagement,” he said.
Leung also pointed out that China and India strongly complement each other economically, and could leverage that to their mutual advantage. “China remains one of the world’s largest markets and is deeply embedded in the global supply chain,” he noted. “By contrast, there is not much that the United States can buy from India, whereas it wants to export a lot to India without necessarily opening up its own market.”
In this context, Leung believes that stronger India-China ties could counter the “America First” policies pursued by the US. “Both from a geopolitical perspective and an economic perspective, it makes a lot of sense for India and China to work together,” he said. “They should focus on areas of mutual benefit rather than being drawn into divisions that no longer define the global order.”
Recent developments indicate that both countries may be moving in this direction. Prime Minister Modi recently stated that competition between India and China should not turn into conflict and that dialogue is key to a stable and cooperative relationship. Beijing has welcomed these remarks, with a foreign ministry spokesperson likening India and China’s future cooperation to a “ballet dance between the dragon and the elephant.” The meeting between Modi and Chinese President Xi Jinping at the BRICS Summit in Kazan last October and recent statements from China’s ambassador to India further suggest that the two nations are entering a phase of recovery in their relations.
Watch the accompanying video for the entire conversation.
