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PM Modi, Xi Jinping to Meet in India as Border, Mega Dam and Bilateral Ties Remain Key Issues

Published On Sat, 12 Sep 2026
Riya Mukherjee
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Prime Minister Narendra Modi and Chinese President Xi Jinping are set to hold talks in India, with the long-standing border dispute, developments in Arunachal Pradesh, China’s mega hydropower project in Tibet and the future of bilateral relations expected to be among the key issues under discussion. The meeting comes at a significant stage in India-China relations, which have shown signs of gradual improvement after years of tension along the Line of Actual Control. The relationship was severely affected by the 2020 Galwan Valley clash, after which both countries maintained a heavy military presence along sensitive areas of the border and engaged in multiple rounds of diplomatic and military negotiations.

The situation along the India-China border is expected to remain one of the most important subjects during the talks. New Delhi has consistently maintained that peace and tranquillity along the border are essential for the broader development of bilateral relations. While the two sides have made progress in managing some areas of tension, the wider boundary dispute remains unresolved.

Arunachal Pradesh is likely to receive particular attention. China claims the Indian state as part of what it refers to as southern Tibet, a position that India firmly rejects. New Delhi has repeatedly stated that Arunachal Pradesh is an integral part of India and has opposed attempts by Beijing to question the state’s territorial status.

Another issue attracting attention is China’s ambitious hydropower project on the Yarlung Tsangpo River in Tibet. The river enters India as the Brahmaputra and is particularly important for Arunachal Pradesh and Assam. India has expressed concerns over developments upstream, including their possible implications for downstream water flows, the environment and regional water security.

The two countries have previously discussed trans-border rivers through established diplomatic mechanisms. India is expected to seek greater transparency and continued communication from China regarding projects on rivers originating in Tibet and flowing into India. Trade and economic relations are also expected to feature in the discussions. China remains an important trading partner for India, but the relationship continues to be affected by a significant trade imbalance. India has been seeking greater access for its exports while also attempting to strengthen domestic manufacturing and reduce dependence on foreign supply chains in strategically important sectors.

The proposed meeting also reflects efforts by both sides to stabilise their relationship. In recent months, India and China have increased high-level diplomatic contacts and discussed measures aimed at improving ties. However, the improvement remains cautious, with major differences over the border, security and strategic competition still unresolved.

The talks could provide an opportunity to reinforce the importance of maintaining peace along the frontier while addressing concerns related to Arunachal Pradesh and trans-border rivers. For Beijing, closer engagement with India could help restore economic and diplomatic ties with one of Asia’s major powers. The outcome of the Modi-Xi talks will therefore be closely watched for indications of whether the recent thaw can develop into a more stable phase in India-China relations. While a major breakthrough on the boundary question may remain difficult, sustained dialogue could help both sides manage tensions and prevent fresh disputes from escalating.

Disclaimer: This image is taken from Hindustan Times.