India, China Discuss Resuming Border Trade
After a five-year halt, both nations are exploring the restart of local trade at designated border points amid signs of easing tensions.
- India and China are in talks to resume local border trade after a five-year halt.
- The trade was suspended in 2020 following border clashes and the pandemic.
- Discussions are centered on three mountain passes: Lipulekh, Shipki La, and Nathu La.
GG News Bureau
New Delhi, 14th Aug: In a move signaling a gradual easing of tensions, India and China are in discussions to resume border trade of locally made goods, which has been halted for over five years. The talks are focused on restarting trade through three designated mountain passes: Lipulekh in Uttarakhand, Shipki La in Himachal Pradesh, and Nathu La in Sikkim.
The border trade, which once involved goods such as spices, carpets, wooden furniture, and wool, was suspended during the COVID-19 pandemic in 2020. The suspension coincided with a sharp deterioration in bilateral ties following a deadly border clash in the Galwan Valley.
This latest development is part of a broader effort to normalize relations. Both nations have recently taken steps to end border tensions and rebuild diplomatic ties. Direct flight connections are expected to resume as soon as next month, and Beijing has eased curbs on some fertilizer shipments to India.
The renewed engagement comes ahead of Prime Minister Narendra Modi’s planned visit to China in late August to attend the Shanghai Cooperation Organisation (SCO) summit. This would be his first visit to China in seven years. A bilateral meeting with Chinese President Xi Jinping is also anticipated on the sidelines of the summit, with key agenda items likely to include critical supplies such as rare earth magnets, fertilizers, and pharmaceuticals.
