India and China are actively engaged in talks to resume border trade after a hiatus of over five years, signalling a potential thaw in bilateral relations following years of tension since the Galwan Valley clashes in 2020.

The Ministry of External Affairs (MEA) of India confirmed that discussions with China are ongoing to restore cross-border trade at three designated mountain passes: Lipulekh in Uttarakhand, Shipki La in Himachal Pradesh, and Nathu La in Sikkim.

These trading points have historically been vital for the livelihoods of border communities and involved trade in locally produced goods such as spices, carpets, wooden furniture, medicinal plants, and wool. The trade volume has traditionally been modest but symbolically important, and was suspended following the escalation of border tensions in June 2020.

MEA spokesperson Randhir Jaiswal stated during a recent media briefing that India remains engaged with the Chinese side to facilitate the resumption of trade through these key passes and promised to provide updates as talks progress.

China’s Foreign Ministry expressed willingness to enhance coordination and communication with India on this matter, recognising the historic importance of border trade in the frontier regions for both nations.

This diplomatic initiative coincides with several other important developments aimed at normalising India-China relations. Notably, Chinese Foreign Minister Wang Yi is scheduled to visit India on August 18, 2025, to hold Special Representative Level talks with India’s National Security Advisor Ajit Doval.

This visit is the first by a Chinese Foreign Minister to India since the 2020 border clashes, and the talks are expected to focus on resolving the ongoing boundary disputes.

Furthermore, plans are underway to resume direct passenger flights between the two countries, which have been suspended since the onset of the COVID-19 pandemic in early 2020.

Indian carriers such as Air India and IndiGo have been asked to prepare for operations to China with short notice, reflecting a broader effort to restore people-to-people connectivity and economic exchanges.

These diplomatic and trade engagements come at a time when India faces new economic challenges, notably increased tariffs imposed by the United States on Indian exports. The steps to restore border trade and improve bilateral ties with China could help India diversify its economic partnerships and reduce external pressures.

In addition, Indian Prime Minister Narendra Modi is expected to visit China later this month (August 28, 2025) to participate in the Shanghai Cooperation Organisation (SCO) summit, where further bilateral discussions with Chinese leadership are anticipated.

The resumption of border trade, direct flights, and high-level diplomatic talks collectively point toward a deliberate effort by India and China to stabilise and improve their complex relationship after years of strain.

India-China talks to restart border trade through Lipulekh, Shipki La, and Nathu La passes mark a significant step in easing tensions, coupled with upcoming diplomatic engagements and the planned resumption of direct flights, reflecting a cautious but positive move towards normalising ties after a five-year gap.

Based On India Today Report