The relations between India and Pakistan had faced heightened tensions following the Galwan Valley clash in 2020. On economic and trade relations, PM Modi and Xi Jinping recognised the role of their two economies to stabilise world trade. They underlined the need to proceed from a political and strategic direction to expand bilateral trade and investment ties and reduce the trade deficit. The relations between India and Pakistan had faced heightened tensions following the Galwan Valley clash in 2020. On economic and trade relations, PM Modi and Xi Jinping recognised the role of their two economies to stabilise world trade. They underlined the need to proceed from a political and strategic direction to expand bilateral trade and investment ties and reduce the trade deficit.