China and India Restart Border Trade Talks After Five Years
The two Asian economic giants are re-engaging to de-escalate tensions, prompted by mounting geopolitical pressure from the Trump administration
- China and India are in discussions to reopen designated border trade points, signaling a diplomatic thaw after a five-year hiatus.
- The cross-border trade was suspended in 2020 following deadly military clashes in the Himalayas, which resulted in the first fatalities in 45 years.
- The renewed dialogue comes as both nations face increasing economic pressure from the US and is part of a broader improvement in relations, which also includes talks to resume direct flights.
China and India are in talks to resume cross-border trade, signalling a significant diplomatic thaw after a five-year hiatus caused by deadly clashes along their shared Himalayan border.
This rapprochement comes as both nations face growing economic pressure from the US.
According to Bloomberg, citing sources in New Delhi, the two sides are discussing reopening designated trade points for locally produced goods.
While there has been no official announcement, the Chinese Foreign Ministry confirmed today that Beijing is "willing to step up communication and coordination with India" on the matter.
The ministry added that border trade has long played a vital role in improving the livelihoods of residents in the region.
The plan to resume border trade is the latest sign of improving relations between the two neighbours. This comes after both countries took steps last year to de-escalate border tensions.
Furthermore, Indian Prime Minister Narendra Modi is expected to visit China this month for the first time in seven years to attend the Shanghai Cooperation Organisation (SCO) summit, a regional security bloc led by Beijing.
Modi is also anticipated to hold a bilateral meeting with Chinese President Xi Jinping on the sidelines of the event.
The cross-border trade, which had been ongoing for over 30 years and included goods like spices and furniture, was suspended in 2020.
That year, a violent confrontation in the Himalayas resulted in the deaths of at least 20 Indian soldiers and four Chinese troops—the first such fatalities in 45 years.
The renewed dialogue is the latest sign of improving relations between the two neighbours.
China and India are also reportedly preparing to resume direct flights next month. This follows Beijing's decision to ease restrictions on some fertiliser shipments to India.
The diplomatic thaw coincides with a souring of relations between India and the US.
President Donald Trump has imposed tariffs of 50% on Indian imports, the highest rate levied on any major trading partner except Brazil.
This rate is double that imposed on other countries in the region, adding a new layer of complexity to Asia's geopolitical landscape.
