What Happened
- Foreign Secretary Vikram Misri and China's Executive Vice Foreign Minister Ma Zhaoxu held the India-China Strategic Dialogue in New Delhi on February 10, 2026.
- Both sides underscored the importance of peace and tranquillity in border areas as a prerequisite for overall progress in bilateral relations.
- India raised concerns over China's export control measures on rare earth minerals, and both sides discussed the need to address structural imbalances in bilateral trade.
- Both sides agreed on an early conclusion of an updated air services agreement, visa facilitation, and expansion of the Kailash Mansarovar Yatra.
- Ma Zhaoxu was in India to participate in the BRICS Sherpa meeting; both sides agreed to support each other's BRICS chairmanship in 2026 and 2027.
Static Topic Bridges
India-China Special Representatives (SR) Mechanism on the Boundary Question (est. 2003)
The Special Representatives mechanism was instituted during Prime Minister Atal Bihari Vajpayee's visit to China in June 2003, under the "Declaration on Principles for Relations and Comprehensive Cooperation." Each side appoints a Special Representative at the political level (not just diplomatic) to explore a framework for settling the boundary dispute. The current SRs are NSA Ajit Doval (India) and Foreign Minister Wang Yi (China). The mechanism has held 24 rounds of talks, the most recent being in August 2025.
- Established: June 2003, during Vajpayee's China visit
- Key achievement: "Agreement on Political Parameters and Guiding Principles for Settlement of the India-China Boundary Question" signed in April 2005
- SR mechanism is distinct from the Foreign Secretary-level Strategic Dialogue (which this article covers) and the Corps Commander-level military talks
- 24th round of SR talks held in August 2025 between NSA Doval and Wang Yi, producing a 10-point consensus
- The boundary dispute covers three sectors: Western (Aksai Chin, ~38,000 sq km), Middle (minor), and Eastern (Arunachal Pradesh, ~90,000 sq km)
Connection to this news: The Misri-Ma Zhaoxu Strategic Dialogue operates at the Foreign Secretary level and addresses the broader bilateral relationship, while the SR mechanism focuses specifically on boundary settlement. The current dialogue is part of a multi-layered engagement architecture rebuilt after the October 2024 disengagement.
India-China LAC Standoff (2020-2024) and Disengagement
The India-China military standoff in eastern Ladakh began in May 2020 when Chinese PLA troops intruded at multiple points along the Line of Actual Control. The Galwan Valley clash on June 15, 2020, resulted in the deaths of 20 Indian soldiers (including Colonel Santosh Babu) and an undisclosed number of Chinese casualties, the deadliest clash between the two countries since 1975.
- May 2020: PLA incursions at Pangong Tso, Galwan Valley, Hot Springs, Gogra, Depsang, and Demchok
- June 15, 2020: Galwan Valley clash — 20 Indian soldiers killed; first fatalities on LAC since 1975
- 2020-2022: Phased disengagement at Pangong Tso (Feb 2021), Gogra (Aug 2021), Patrolling Point 15 (Sep 2022)
- 2022-2024: Stalemate over Depsang Plains and Demchok — China wanted to treat these as "legacy issues," India demanded full disengagement
- October 21, 2024: India announced agreement on patrolling arrangements at Depsang and Demchok; disengagement completed by October 30, 2024
- Relations subsequently moved towards normalisation: Modi-Xi met at BRICS Kazan (Oct 2024), SR talks resumed (Aug 2025)
Connection to this news: The Strategic Dialogue is part of the systematic rebuilding of bilateral ties after the four-year standoff. Both sides are now working on "normalisation" measures such as air services, visa facilitation, and Kailash Mansarovar Yatra, steps that were frozen during the standoff period.
India-China Trade Deficit — Structural Imbalance
India-China bilateral trade hit a record $155.6 billion in 2025, but the trade deficit widened to a record $116 billion. India's exports to China were $19.75 billion, while imports from China surged to $135.87 billion, driven by electronics, machinery, organic chemicals, and plastics.
- 2025 bilateral trade: $155.6 billion (12% YoY increase)
- 2025 trade deficit: $116 billion (up from $99 billion in 2024)
- India's exports to China: $19.75 billion — concentrated in raw materials (iron ore, cotton, organic chemicals)
- India's imports from China: $135.87 billion — dominated by electronics, telecom equipment, machinery, active pharmaceutical ingredients (APIs)
- India imported 93% of rare earth magnets from China in FY 2024-25
- China controls 60%+ of global rare earth mining and 80%+ of processing
- India launched the National Critical Mineral Mission (NCMM) in 2024 and approved a Rs 73 billion scheme for rare earth permanent magnet manufacturing in November 2025
Connection to this news: India explicitly raised concerns about China's rare earth export controls during this dialogue. The structural trade deficit is a key irritant — India wants market access for its products (particularly agricultural and pharmaceutical) while reducing dependency on Chinese imports in strategic sectors like electronics and critical minerals.
BRICS Mechanism — India (2026) and Brazil (2027) Chairmanship
BRICS is an intergovernmental grouping originally comprising Brazil, Russia, India, China, and South Africa. In January 2024, it expanded to include Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE ("BRICS+"). India assumed the BRICS chairmanship for 2026, and Brazil holds it for 2027.
- BRICS established: 2006 (BRIC, with S added in 2010 when South Africa joined)
- Expanded from 5 to 10 members in January 2024
- Key BRICS institutions: New Development Bank (NDB, est. 2015, HQ Shanghai), Contingent Reserve Arrangement (CRA)
- India's BRICS presidency theme for 2026 focuses on inclusive multilateralism
- BRICS nations represent approximately 45% of world population and 35% of global GDP (PPP)
Connection to this news: Ma Zhaoxu's visit to India was primarily for the BRICS Sherpa meeting as India holds the 2026 chairmanship. The agreement to support each other's BRICS presidencies signals a diplomatic convergence, even as bilateral irritants like the trade deficit and border tensions persist.
Key Facts & Data
- India-China Strategic Dialogue held: February 10, 2026, New Delhi
- India's Foreign Secretary: Vikram Misri; China's Executive Vice FM: Ma Zhaoxu
- Disengagement at Depsang and Demchok completed: October 30, 2024
- SR mechanism established: 2003; 24 rounds held through August 2025
- India-China bilateral trade (2025): $155.6 billion; trade deficit: $116 billion
- India's rare earth magnet imports from China: 93% (FY 2024-25)
- BRICS chairmanship: India (2026), Brazil (2027)
- Kailash Mansarovar Yatra successfully resumed after COVID-19 and standoff-era suspension