India-China economic engagement has reached a new milestone with bilateral trade hitting an unprecedented USD 155.6 billion in 2025, according to Chinese Ambassador Xu Feihong. The envoy described the growth as proof that relations between the two countries are stabilising and evolving into a new phase following the diplomatic thaw after the Modi-Xi meeting in Tianjin. He emphasised that India’s Atmanirbhar Bharat and China’s self-reliance push share common developmental goals and highlighted cultural convergence between China’s harmony vision and India’s Vasudhaiva Kutumbakam. Beijing has also backed India’s BRICS leadership, pointing to expanding multilateral cooperation aimed at strengthening Global South influence. The trade surge comes after military disengagement following years of border tensions, indicating that both nations are prioritising economic stability despite lingering strategic rivalry. The evolving relationship reflects Asia’s shifting power balance, where cooperation and competition continue to coexist in shaping regional geopolitics and global supply chains.