China

India’s Commerce and Industry Minister, Piyush Goyal, has indicated that relations between New Delhi and Beijing are gradually moving toward normalization, a development that carries significant geopolitical and economic implications. Speaking at a recent interaction, Goyal emphasized the importance of constructive engagement between the two Asian powers, noting that bilateral trade continues to expand despite earlier disruptions.

Chinese President Xi Jinping has renewed calls for the creation of a Shanghai Cooperation Organisation (SCO) development bank, positioning it as a strategic financial instrument to advance regional integration and strengthen economic cooperation. Addressing member states, Xi underscored the need for deeper financial collaboration to counter global economic uncertainties and to accelerate infrastructure growth across Eurasia. The proposed institution, he argued, would not only bolster trade and investment flows but also serve as a stabilizing force amid shifting geopolitical realities.

China’s decision to restrict fertilizer exports has raised concerns in India, a country heavily reliant on imports to sustain its vast agricultural base. With domestic demand for fertilizers peaking ahead of crucial sowing seasons, the curbs could disrupt supply chains and put upward pressure on prices. India, one of the largest consumers of fertilizers globally, imports a significant share from China, particularly urea and diammonium phosphate (DAP).

In a gripping encounter at the Hockey Asia Cup 2025, India edged past China with a dramatic 4-3 win, led by captain Harmanpreet Singh’s sensational hattrick. The clash, marked by relentless intensity and shifting momentum, showcased India’s attacking brilliance and China’s spirited resistance. With this victory, India not only reinforced its dominance in the continental tournament but also demonstrated resilience under pressure, overcoming defensive lapses and capitalizing on penalty corners at crucial moments.

Prime Minister Narendra Modi has underscored the significance of constructive engagement between India and China, framing their cooperation as essential for global stability and sustainable growth. Speaking against the backdrop of shifting geopolitical alignments, Modi emphasized that as two of the world’s largest economies and most populous nations, India and China bear a shared responsibility to foster peace, economic resilience, and multilateral cooperation.

China has agreed to resume trade with India through the Shipki-La pass in Himachal Pradesh, reviving a traditional border route that has remained largely inactive in recent years. The decision, seen as a step toward rebuilding economic engagement, is expected to benefit local traders and border communities while enhancing bilateral commerce. Trade via Shipki-La will primarily focus on region-specific goods, ranging from agricultural produce to handicrafts, with potential expansion into broader categories over time.

Walmart Inc. reported robust earnings for the second quarter of FY26, driven largely by strong contributions from its international portfolio, particularly Flipkart in India and its operations in China. The U.S. retail giant posted higher revenues as e-commerce and omnichannel strategies continued to gain traction across emerging markets. Analysts note that Walmart’s ability to leverage its scale, digital ecosystem, and localized strategies has positioned it favorably in regions with expanding consumer demand.

India and China are signaling a cautious thaw in their complex relationship, positioning themselves as stabilizing forces in a shifting global order influenced by the Trump administration’s policies. Both nations, historically marked by border tensions and competing interests, are now emphasizing dialogue, trade, and shared interests in multilateral forums. With Washington adopting a more unpredictable and transactional approach, New Delhi and Beijing appear to be recalibrating their strategies to protect economic growth and regional influence.

Former NITI Aayog Vice Chairman Rajiv Kumar has called for a reassessment of India’s current restrictions on Chinese investments, arguing that such limitations may be counterproductive to the country’s long-term economic interests. He emphasized that while national security concerns must remain paramount, a more calibrated approach could attract greater foreign direct investment (FDI), enhance supply chain efficiency, and improve India’s global competitiveness.

Paytm, one of India’s pioneering digital payment platforms, has announced that it is now entirely Indian-owned, with no Chinese shareholding remaining. This strategic milestone follows the complete exit of Alibaba and Ant Group—once among its major investors. The development marks a significant turn in the company’s evolution amid rising scrutiny of foreign ownership in Indian tech firms.