India-China Ties Advance to 'New Level' but Trust Deficit Persists, Says Chinese Envoy

India-China relations have progressed from a 'reset and fresh start' to a 'new level of development' over the past year, but a serious trust deficit and stalled dialogues continue to hinder full normalisation, Chinese Ambassador to India Xu Feihong said on Friday.

Speaking at The Hindu Huddle in Bengaluru, Mr. Xu acknowledged the 'gradual and tangible progress' made recently, including the easing of restrictions on Chinese investments, resumption of the Kailash-Mansarovar pilgrimage for Indian nationals, and the restart of direct flights between several cities. However, he stressed that ties were not yet fully normalised and called for accelerated joint efforts.

'Both President Xi Jinping and Prime Minister Narendra Modi attach great importance to bilateral ties and view relations from a strategic and long-term perspective,' Mr. Xu said, highlighting the leaders' role in providing strategic guidance. He noted that diplomatic teams have been working to advance the implementation of common understandings reached at the leadership level.

Despite these positives, the envoy pointed to a 'serious deficit of trust' between the two neighbours. He observed that exchanges between policy-making bodies remained insufficient, and most of the nearly 50 government-to-government dialogue mechanisms remained stalled. China, he said, was ready to resume exchanges in various fields and at various levels.

On the boundary question, which has been a flashpoint since the Galwan Valley clash in June 2020, Mr. Xu stated that the border situation is 'generally stable and peaceful'. He referred to the recent 35th meeting of the Working Mechanism for Consultation and Coordination on border affairs held in Beijing, where both sides discussed delimitation, management, mechanism building, and cross-border cooperation.

'The boundary question is complex and sensitive, left over from history,' he said, adding that it 'concerns the sentiments of the two peoples and requires dialogue and consultation to seek a fair, reasonable and mutually acceptable resolution.' He expressed confidence that as ancient civilisations, China and India have the wisdom to accommodate each other's core interests and settle differences through dialogue.

On the easing of investment curbs, Mr. Xu said China was 'happy to see the Indian side has gradually eased restrictions on Chinese investment', referring to measures imposed in early 2020 under Press Note 3. He clarified, however, that this was not yet a complete easing.

The envoy reiterated the global significance of stable India-China relations, stressing that their importance 'extends beyond the bilateral scope and carries global strategic significance.' Both nations, he suggested, must work continuously to bridge the trust gap and revive institutional dialogues for lasting peace and cooperation.