Xi Jinping's First India Visit Since 2019: What the Modi-Xi Meeting Means If You're Sourcing from China

China's president Xi Jinping landed in New Delhi this weekend for his first visit to India since 2019, and his first since the deadly 2020 Galwan border clash froze relations between the two countries. The occasion is the BRICS summit, but the real story for anyone sourcing from China is the bilateral meeting: Xi and Prime Minister Narendra Modi are scheduled to meet directly on Saturday evening, with trade squarely on the agenda.

Trade imbalance is the headline issue

China remains India's largest trading partner, with two-way trade hitting a record $151.1 billion in the year to March 2026. But India's trade deficit with China has also hit a record - $112.16 billion, up from $99.21 billion the year before. India has pushed fellow BRICS members to address trade imbalances, and better market access for Indian exports into China is expected to be part of this weekend's discussion.

A thaw that's already showing up in policy, not just handshakes

This meeting isn't happening in isolation - it's the latest step in a string of concrete changes already underway in 2026:

• Border trade through Shipki La Pass in Himachal Pradesh resumed on August 1, 2026, after a six-year suspension - the first traders crossed carrying goods along a route that predates both modern countries
• India eased foreign investment rules in March 2026, allowing companies with up to 10% Chinese ownership to enter India through the automatic route, without needing prior government approval
• Business travel between the two countries has gotten steadily easier through the year, with direct flights and faster visa processing

What this means if you're sourcing from China right now

None of this changes the fundamentals of sourcing well: verify your supplier, get a sample, know your landed cost before you commit to a price. But the direction of travel is unmistakable - trade volume is at a record high, the investment and travel environment keeps loosening rather than tightening, and the highest-level meeting between the two countries in years is happening specifically to smooth out friction in a relationship neither side wants to disrupt. If you've been sourcing directly from Chinese suppliers, or considering it, nothing about this weekend's headlines suggests that's about to get harder.

The takeaway

Diplomacy moves slower than a purchase order, and a single summit won't undo years of friction overnight. But for an Indian business actually placing orders, the signal from this weekend is the same one the trade data has been sending all year: direct sourcing from China isn't a relationship that's cooling off.