NEW DELHI / BEIJING — In a move that signals the end of a long diplomatic winter, Chinese President Xi Jinping has officially characterized China and India as “good neighbours, friends, and partners.” The message, sent to President Droupadi Murmu on Monday, marks the warmest rhetoric seen from Beijing in over half a decade.
While the “Dragon and the Elephant” have spent the last four years in a tense military standoff along the Line of Actual Control (LAC), the reality of 2026—dominated by U.S. President Donald Trump’s aggressive tariff wars—has forced the two Asian giants into an unexpected embrace.
The Message: “Dragon and Elephant Dancing Together”
According to the official Xinhua news agency, President Xi Jinping used a famous strategic metaphor in his Republic Day greetings, stating that the “dragon and the elephant dancing together” is of “great significance for maintaining and promoting world peace and prosperity.”
Xi’s message emphasized that:
- The Relationship is Developing: Over the past year, bilateral ties have “continued to improve and develop.”
- Stability is Key: He expressed a desire for both nations to “address each other’s concerns” to promote a healthy and stable long-term relationship.
The Catalyst: The “Trump Factor” and Global Trade Wars
The sudden warmth from Beijing isn’t just about cultural greetings; it’s about economic survival. As President Donald Trump unleashes a 100% tariff war against various nations and imposes a 50% tariff on Indian goods and over 30% on Chinese goods, the two nations have found a common cause.
As reported by Storify News, this “reset” began in late 2024 at the BRICS summit in Kazan and accelerated last August when Prime Minister Narendra Modi traveled to Tianjin for the SCO summit. Faced with a hostile Washington, New Delhi and Beijing are choosing “Asiatic Cooperation” over “Transatlantic Reliance.”
The Economic Reset: Flights, Investment, and $130 Billion Trade
Despite the military friction that followed the 2020 Galwan Valley clash, the economic undercurrents never truly stopped. In early 2026, the two nations have moved rapidly to normalize their financial ties:
- Direct Flights Resumed: After a five-year hiatus, direct flights between India and China resumed this past October.
- Easing Investment Curbs: New Delhi is reportedly planning to ease the strict curbs on Chinese FDI (Foreign Direct Investment) that were imposed in 2020.
- Trade Resilience: Bilateral trade has crossed the $130 billion mark annually, making China one of India’s top trading partners despite the political frost.
The “Mother of All Deals” Context
The surprise message from Xi Jinping comes just as India prepares to sign the “Mother of All Deals”—the Free Trade Agreement with the European Union. By stabilizing the border and warming up to China, India is positioning itself as the ultimate “Swing State” of the global order—a nation that can cut deals with Brussels, maintain BRICS solidarity with Beijing, and stand firm against trade pressure from Washington.
Final Verdict
President Xi’s Republic Day message is a clear signal that the “Asiatic Century” is being prioritized. While complex border issues remain unresolved, the rhetoric of “friendship and partnership” suggests that for now, the economic and geopolitical costs of confrontation have become too high for either the Dragon or the Elephant to bear.
