India, China leaders talk trade and not territorial dispute

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India, China leaders talk trade and not territorial dispute
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'It seems like what the two leaders have done is try to set some of the thorny political issues to the side,' said Dhruva Jaishankar, director of the U.S. Initiative at the Observer Research Foundation.

Reuters reported Xi did not discuss Kashmir with Modi on Saturday"It seems like what the two leaders have done is try to set some of the thorny political issues to the side," said Dhruva Jaishankar, director of the U.S. Initiative at the Observer Research Foundation.Arun Sankar | AFP | Getty Images

Indian leaders have made it very clear that the country is open to collaborating with China, Jaishankar said. But that cooperation will be on a case-by-case basis, as India has some of the same concerns in working with China as Washington has cited, he said.stands at $53.57 billion in Beijing's favor — the largest imbalance New Delhi has with any country. Still, that towering figure is down from $63.05 billion a year ago.

Xi and Modi may have recognized that the ties between Beijing and New Delhi are "below potential," Jaishankar said. As the U.S. and China try to resolve their protracted trade war, Xi and Modi may hope to establish a more stable relationship amid global uncertainty. "So we have seen an increase, for example, in Chinese investment in India, not just greenfield investment but also portfolio investment, including in the tech sector, quite significantly, and then more by the Chinese private sector companies rather than state-owned enterprises," said Jaishankar.

New Delhi is working together with Beijing in battling climate change, but in defense and education, Jaishankar said, there's a "natural alignment" for India and the U.S.

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