India-China relations are a complex, bilateral relationship between two major Asian powers, characterized by both deep economic ties and a persistent, unresolved border dispute. Modern diplomatic relations began on April 1, 1950, when India became one of the first non-communist countries to recognize the People's Republic of China (PRC). The initial phase was marked by the 1954 signing of the Panchsheel (Five Principles of Peaceful Coexistence), but the relationship deteriorated following China's annexation of Tibet and the 1962 Sino-Indian War.
The relationship is primarily governed by a framework of agreements designed to manage the border dispute, which remains the central point of contention. The key mechanism is the 1993 Agreement on the Maintenance of Peace and Tranquility along the Line of Actual Control (LAC), which formally accepted the LAC as the de facto line to be respected until a final settlement. The LAC is a non-demarcated conceptual line separating Indian-controlled and Chinese-controlled territories, with India perceiving its length as 3,488 km and China as about 2,000 km. Further confidence-building measures were established by the 1996 Agreement on Confidence-Building Measures in the Military Field. The relationship connects directly to the Sino-Indian border dispute, which involves differing perceptions of the LAC in the western (Ladakh/Aksai Chin) and eastern (Arunachal Pradesh/McMahon Line) sectors. Economically, China was India's largest trading partner between 2008 and 2021, despite India's large trade deficit.
The relationship changed significantly following the deadly 2020 Galwan Valley clashes, the first military fatalities since 1975. In response, India increased scrutiny of Chinese investments, banned popular Chinese mobile apps, and severed direct passenger air links. A disengagement pact was reached in October 2024, with troops pulling back from all friction points by December 2024. While both sides maintain substantial military deployments, a cautious thaw has recently emerged, marked by the resumption of direct flights and an improvement in trade and business ties.