Chinese President Xi Jinping and Indian Prime Minister Narendra Modi held their first meeting since Donald Trump returned to power, with the longstanding Asian rivals pledging deeper cooperation as they deal with the economic fallout from the U.S. trade war.

Modi announced the resumption of direct flights between the two countries, and said ties in the past year have stabilized after soldiers pulled back from the friction points on the border. The two met at the port city of Tianjin on the sidelines of the Shanghai Cooperation Organisation summit, a security-focused bloc co-founded by China.

China and India should not let border issues define their relationship, Xi told Modi, adding that the “right choice” is to be friends. “As long as the two countries remain partners rather than rivals, and see each other as development opportunities rather than threats, China-India relations will flourish and move forward steadily,” Xi was quoted as saying by the Chinese news agency Xinhua.

Modi’s visit, his first to China in seven years, comes as both countries face steep tariffs from Washington and amid growing urgency to diversify global partnerships. Last week, the U.S. followed through with its threat to impose tariffs of 50% on Indian goods, punishment for New Delhi’s continued purchases of Russian oil that Washington says helps fund Moscow’s war in Ukraine.

New Delhi has defended its ties with Russia and labeled Trump’s actions as “unfair” — one that threatens to ravage Indian exporters, who shipped $87 billion worth of goods to the U.S. last year.

‘Chaotic’ world

During their bilateral meeting Sunday, Xi made four suggestions to deepen ties between the two countries, India’s Foreign Secretary Vikram Misri told reporters in Tianjin. The leaders also discussed ways to increase and balance trade, he said.

Xi called for stronger “strategic communication” and deepening mutual trust, expanding cooperation to “achieve mutual benefits and win-win results,” to accommodate each others concerns, and to “strengthen multilateral cooperation to safeguard common interests,” Misri said. The points were also highlighted in a separate statements from China’s Ministry of Foreign Affairs.

“The international situation is both fluid and chaotic,” Xi said at the meeting, according to a video clip circulated by the Press Trust of India. It is right for China and India “to be friends who have good neighborly and amicable ties, partners who enable each other’s success, and to have the dragon and the elephant dance together,” he said.

The Tianjin gathering is spotlighting Xi’s vision for global governance as he works to build partnerships that rival the U.S.-led order. At the meeting, political leaders from Russia, India, Pakistan and Iran are expected at the same table for the first time in years. The event is the bloc’s largest ever.

Sunday’s meeting between Xi and Modi followed a rare diplomatic breakthrough in August, when New Delhi and Beijing agreed to explore demarcating their disputed border — a key step toward resolving decades-old territorial tensions, Bloomberg News reported. The move signaled a shift toward dialog after years of military standoffs and strained relations.

India and China share a 3,488 kilometer (2,167 miles) long unmarked disputed border where soldiers clashed in June 2020, the worst in decades and hurting ties.

Modi also met Cai Qi, Xi’s close aide and a Politburo Standing Committee member, India’s MEA said.

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(With assistance from Lucille Liu.)

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