Modi receives Beijing’s top diplomat as India-China tensions ease amid US trade war

Indian Prime Minister Narendra Modi (left) meets China’s foreign minister Wang Yi in New Delhi, on August 19, 2025. (@narendramodi/X)
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Updated 19 August 2025
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Modi receives Beijing’s top diplomat as India-China tensions ease amid US trade war

  • India-China relations have been tense since deadly clashes along their border in 2020
  • Disruption from Trump’s tariffs created an opening for the Asian powers to repair ties

NEW DELHI: Indian Prime Minister Narendra Modi received China’s top diplomat on Tuesday, as the Asian powers resumed disputed border talks after years of tensions.

The neighbors and the world’s two most populous countries have been locked in a standoff triggered by deadly clashes along their Himalayan border, known as the Line of Actual Control, in 2020.

Tens of thousands of troops, tanks, and artillery have since been deployed on both sides of the LAC, with both countries building new roads, bunkers, and airstrips in the high-altitude area.

Despite multiple rounds of military and diplomatic engagements, friction points remained, with India restricting Chinese investments, banning dozens of Chinese apps, and scrutinizing trade ties, as it deepened relations with Beijing’s rivals — the US, Japan, and Australia.

But a recent disruption caused earlier this month by US President Donald Trump’s trade war, in which he unexpectedly hiked the total duty on Indian exports to 50 percent, has created an opening for the Asian powers to seek to repair ties.

Wang Yi, China’s foreign minister, arrived in New Delhi for a three-day visit on Monday. Ahead of meeting Modi, he held talks with his counterpart, S. Jaishankar, who told him in his welcome speech that after a “difficult period” in bilateral relations, the “two nations now seek to move ahead.”

Jaishankar said the visit would cover economic and trade issues, including cross-border trade, as well as people-to-people contacts.

Wang also met India’s national security adviser, Ajit Doval, for the 24th round of talks to discuss de-escalation of border tensions, and said he was ready to work with India “to build more consensus and identify the direction, the specific goals of the boundary consultations going forward, and create more conditions for the improvement and further growth” of bilateral relations.

A thaw between India and China began last year, when Modi and Chinese President Xi Jinping held their first bilateral meeting in five years at a summit of BRICS nations in Russia’s Kazan.

They are expected to meet again later this month as Modi will visit China for a summit of the Shanghai Cooperation Organization. This will be the Indian prime minister’s first official trip to China in over six years.

“Both are moving gradually to try and normalize a relationship. If you go back to October last year when Prime Minister Modi met President Xi Jinping, you saw the beginnings of some sort of an effort toward normalization,” Manoj Kewalramani, chairperson of the Indo-Pacific Research Program and a China studies fellow at the Takshashila Institution, told Arab News.

But after years of freeze, the change was not likely to happen immediately.

Kewalramani expected that as the two countries resumed talks, they would be followed by more engagements at the levels of commerce, finance and industry and technology ministers.

“We can start to build on areas where there are commonalities and where are shared interests that would inject some sort of stability not only in the relationship but also in the geopolitics of the region,” he said.

“One can argue that the disruption that Donald Trump has caused has led to some degree of urgency, but I don’t think you’re going to see an overnight change in the relationship. I think what you are going to see is a slow, cautious, calibrated effort by both sides to try and arrive at some sort of a new equilibrium.”


Pakistan, global crypto exchange discuss modernizing digital payments, creating job prospects 

Updated 05 December 2025
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Pakistan, global crypto exchange discuss modernizing digital payments, creating job prospects 

  • Pakistani officials, Binance team discuss coordination between Islamabad, local banks and global exchanges
  • Pakistan has attempted to tap into growing crypto market to curb illicit transactions, improve oversight

ISLAMABAD: Pakistan’s finance officials and the team of a global cryptocurrency exchange on Friday held discussions aimed at modernizing the country’s digital payments system and building local talent pipelines to meet rising demand for blockchain and Web3 skills, the finance ministry said.

The development took place during a high-level meeting between Finance Minister Muhammad Aurangzeb, Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman Bilal bin Saqib, domestic bank presidents and a Binance team led by Global CEO Richard Teng. The meeting was held to advance work on Pakistan’s National Digital Asset Framework, a regulatory setup to govern Pakistan’s digital assets.

Pakistan has been moving to regulate its fast-growing crypto and digital assets market by bringing virtual asset service providers (VASPs) under a formal licensing regime. Officials say the push is aimed at curbing illicit transactions, improving oversight, and encouraging innovation in blockchain-based financial services.

“Participants reviewed opportunities to modernize Pakistan’s digital payments landscape, noting that blockchain-based systems could significantly reduce costs from the country’s $38 billion annual remittance flows,” the finance ministry said in a statement. 

“Discussions also emphasized building local talent pipelines to meet rising global demand for blockchain and Web3 skills, creating high-value employment prospects for Pakistani youth.”

Blockchain is a type of digital database that is shared, transparent and tamper-resistant. Instead of being stored on one computer, the data is kept on a distributed network of computers, making it very hard to alter or hack.

Web3 refers to the next generation of the Internet built using blockchain, focusing on giving users more control over their data, identity and digital assets rather than big tech companies controlling it.

Participants of the meeting also discussed sovereign debt tokenization, which is the process of converting a country’s debt such as government bonds, into digital tokens on a blockchain, the ministry said. 

Aurangzeb called for close coordination between the government, domestic banks and global exchanges to modernize Pakistan’s payment landscape.

Participants of the meeting also discussed considering a “time-bound amnesty” to encourage users to move assets onto regulated platforms, stressing the need for stronger verifications and a risk-mitigation system.

Pakistan has attempted in recent months to tap into the country’s growing crypto market, crack down on money laundering and terror financing, and promote responsible innovation — a move analysts say could bring an estimated $25 billion in virtual assets into the tax net.

In September, Islamabad invited international crypto exchanges and other VASPs to apply for licenses to operate in the country, a step aimed at formalizing and regulating its fast-growing digital market.