A possible warming in bilateral relations after years of hostility following the skirmishes in the Galwan Valley in 2020 is indicated by the active negotiations between China and India to restore border trade after a five-year break.
Talks to resume cross-border trade at three designated mountain passes—Lipulekh in Uttarakhand, Shipki La in Himachal Pradesh, and Nathu La in Sikkim—are still ongoing, according to the Indian Ministry of External Affairs (MEA).
These trading hubs, which featured the exchange of locally produced items including wool, carpets, wooden furniture, spices, and medicinal plants, have long been essential to the livelihoods of border people. The commerce volume, which has historically been small but symbolic, was halted after border tensions escalated in June 2020.
During a recent media conference, MEA spokesperson Randhir Jaiswal said that India is still working with the Chinese side to help resume trade through these crucial passes and that he would keep the media informed as the negotiations move further.
China’s Foreign Ministry acknowledged the historical significance of border trade in the bordering regions for both countries and stated a commitment to improve coordination and communication with India on this issue.
This diplomatic effort aims to normalize relations between China and India and comes at the same time as a number of other significant developments. Notably, on August 18, 2025, Chinese Foreign Minister Wang Yi will travel to India for Special Representative Level discussions with Ajit Doval, India’s National Security Advisor.
The meetings are anticipated to center on settling the continuing boundary issues, and this is the first time a Chinese foreign minister has visited India since the border battles in 2020.
Additionally, preparations are in motion to restore direct passenger flights between the two nations, which have been halted since the COVID-19 epidemic began in early 2020.
As part of a larger initiative to restore commercial exchanges and people-to-people contact, Indian carriers like IndiGo and Air India have been instructed to quickly prepare for operations to China.
These trade and diplomatic initiatives coincide with growing economic difficulties for India, most notably higher U.S. tariffs on Indian exports. By restoring border trade and strengthening bilateral relations with China, India may be able to diversify its economic alliances and lessen pressure from outside sources.
Further bilateral talks with Chinese leadership are also planned when Indian Prime Minister Narendra Modi travels to China later this month (August 28, 2025) to attend the Shanghai Cooperation Organization (SCO) summit.
After years of tension, the restart of border trade, direct flights, and high-level diplomatic discussions all indicate a concerted attempt by China and India to stabilize and strengthen their complicated relationship.
Along with future diplomatic meetings and the scheduled resumption of direct flights, India-China talks to resume border trade through the Lipulekh, Shipki La, and Nathu La passes represent a significant step in reducing tensions and represent a cautious but constructive step towards normalizing ties after a five-year break.
