India and China are moving towards restoring border trade and direct air connectivity, channels that have been shut for more than five years. The diplomatic push comes ahead of Chinese Foreign Minister Wang Yi’s visit to New Delhi on August 18 for boundary talks with National Security Adviser Ajit Doval.
Border Trade Through Three Himalayan Passes
The Ministry of External Affairs (MEA) confirmed discussions are underway to resume trade at the three designated border points: Lipulekh Pass (Uttarakhand), Shipki La (Himachal Pradesh), and Nathu La (Sikkim).
MEA spokesperson Randhir Jaiswal stated, “We have remained engaged with the Chinese side to facilitate the resumption of border trade through all the designated trade points.”
China’s Foreign Ministry echoed the sentiment, saying both nations are committed to implementing understandings reached between their leaders, building political trust, and enhancing practical cooperation.
Direct Flights Back on the Table
Alongside trade talks, discussions are also progressing on restoring direct flights between the two countries. Indian airlines have been advised to be ready to launch services to China at short notice, with a possible announcement timed around the Shanghai Cooperation Organization (SCO) Summit in late August.
Beijing highlighted that with a combined population exceeding 2.8 billion, resuming flights would significantly boost travel, exchanges, and economic cooperation.
High-Level Engagements
Prime Minister Narendra Modi is expected to attend the SCO Summit in China — his first visit since the 2020 border standoff. Wang Yi’s trip will precede it by just days, with the Special Representatives dialogue on the boundary question also scheduled.
NSA Doval last visited China in December 2024, following Modi and President Xi Jinping’s decision in Kazan to revive stalled dialogue mechanisms.
Gradual Recovery from the Galwan Clashes
Relations deteriorated sharply after the 2020 Galwan Valley clashes in eastern Ladakh. However, October 2024 marked a breakthrough when both sides disengaged troops from Demchok and Depsang. Since then, confidence-building measures have included exploring the revival of the Kailash Mansarovar Yatra and resuming tourist visas for Chinese nationals.
Strategic Backdrop: US Tariffs Pressure India
The renewed engagement with Beijing comes amid rising tensions between India and the US, with the Trump administration imposing a 50% tariff on Indian imports of Russian crude oil and a 25% tariff on Indian exports.
Given these pressures, restoring trade and travel links with China could carry significant strategic and economic implications, beyond signalling a thaw in ties.
