Ladakh, Trade Deficit Put Modi’s China Policy Under Scrutiny

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By TRH Foreign Affairs Desk

The geopolitics analyst questions Beijing’s reported position on Ladakh, rising India-China trade deficit and the lack of a breakthrough in border negotiations.

New Delhi, October 14, 2026 — Geopolitics analyst Manish Anand has questioned India’s China policy following reports that Beijing does not recognise Ladakh as part of India, arguing that diplomatic engagement and economic concessions have failed to resolve the border dispute.

In a monologue for The Raisina Hills, Anand said the reported Chinese position on Ladakh was particularly significant because Beijing has repeatedly challenged India’s sovereignty over Arunachal Pradesh, while its claims concerning Ladakh represent a fresh source of concern.

Anand recalled former Foreign Secretary Shyam Saran’s assessment that any eventual border settlement with China could involve reciprocal concessions, including the disputed western and eastern sectors.

He questioned whether the normalisation of India-China relations after the 2020 Galwan Valley clash had delivered tangible strategic gains for New Delhi. Despite repeated meetings between Prime Minister Narendra Modi and Chinese President Xi Jinping, Anand argued, Beijing had not abandoned its territorial claims.

He also pointed to the widening bilateral trade deficit, which he cited at approximately $115 billion, and questioned why India had eased certain restrictions on Chinese investments without securing corresponding concessions on the border dispute.

Anand argued that India should examine whether its economic leverage was being used effectively in negotiations with Beijing. He also called for greater parliamentary scrutiny of the Special Representatives’ border talks, which have completed 25 rounds.

Warning against dismissing China’s statements on Ladakh, Anand said Beijing’s position could influence its demands in any future negotiations.

He further questioned the asymmetry in India’s approach to territorial sovereignty, arguing that New Delhi has maintained its One China policy while continuing to face Chinese claims over Indian territory.

Anand called for a reassessment of India’s China strategy, contending that diplomatic engagement must produce measurable outcomes on border security and territorial claims.

The analyst also stated that Chinese aggression on India’s border areas despite Xi Jinping’s New Delhi visit belies expectation that Beijing will moderate its stance in managing disputed border. He argued that China continues to stick with its famed ‘Salami Slicing’ under which it allegedly grabs land of neighbours.