India, China in Talks to Resume Border Trade After Five-Year Halt
India and China are in discussions to restart border trade, five years after it was suspended, according to officials from both countries. The move comes as global trade faces disruptions due to US tariff policies.
While trade across the Himalayan border passes has historically been modest in volume, the decision to resume it is seen as symbolically important, reflecting efforts to rebuild strained ties.
Relations between the two nations were severely impacted by a deadly border clash in 2020, but recent diplomatic exchanges — including agreements to resume direct flights and issue tourist visas — suggest a shift towards cooperation.
Chinese Foreign Minister Wang Yi is expected to visit New Delhi on Monday, following Indian Foreign Minister S. Jaishankar’s trip to Beijing in July. Both sides have confirmed a consensus on resuming cross-border exchanges, although no specific date for trade resumption has been announced.
India’s junior foreign minister, Kirti Vardhan Singh, told parliament that New Delhi is working with Beijing to facilitate the process.
The talks come amid geopolitical tensions influenced by US trade policies and energy sanctions. The US has warned India to reduce its Russian oil imports, with potential tariff hikes if it does not comply.
There is also speculation that Prime Minister Narendra Modi may visit China in late August for the Shanghai Cooperation Organisation (SCO) summit, which would mark his first trip there since 2018. Beijing has welcomed the possibility of his attendance.
