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In the recent geopolitical and economic changes in Asia, two economic powers, India and China, showed signs of improved relations. Nearly five years later, India and China resumed their air travel service and are working on resolving their differences over trade and economic issues. In a meeting on 27th Jan between China’s Foreign Minister Wang Yi and India’s diplomat Vikram Misri, both parties negotiated a framework for the flights’ resumption at an early date.

Further, on the 28th of January, the Chinese foreign ministry confirmed that the flights would resume, and they further mentioned that India and China should work in harmony rather than “suspicion” and “alienation”. After the release of DeepSeek R1, this is the second big news coming from China to combat sanctions imposed by the USA.

However, the statement from India didn’t delve much into the details. They mentioned, “Specific concerns in the economic and trade areas were discussed with a view to resolving these issues and promoting long-term policy transparency and predictability.

Analysts suggest that U.S. President Donald Trump’s Tariff threats drive China and India to strengthen their collaboration. Trump has threatened tariffs on China, while India represents a significant market for Chinese goods. At the same time, New Delhi seeks Chinese expertise, components, and machinery to boost its exports and sustain economic growth following recent peaks.

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Tanishka Jain

Tanishka Jain is a Content Writer at TradeFlock with 2+ years of experience in business journalism, with a sharp eye for spotting trends shaping the industry. She has authored over 50 articles, specializing in business analyses that break down what's really moving the market. Her writing is engaging and accessible, built to help readers of all backgrounds make sense of business shifts. Several of her trend-based analyses have gone on to prove accurate, reflecting her strong read on where the market is headed.

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