India and China are in talks to resume border trade after a five-year halt, officials from both sides confirmed. While the trade volume has been small, restarting it carries strong symbolic importance for their tense relationship. Both are major economic powers competing for influence in South Asia.
The talks come amid ongoing global trade disruptions caused by US tariffs introduced during President Trump’s administration. Chinese Foreign Minister Wang Yi plans to visit New Delhi soon to discuss the issue, following Indian Foreign Minister Subrahmanyam Jaishankar’s visit to Beijing last month. This diplomatic activity marks efforts to improve strained ties.
In addition to trade talks, both countries are working to restart direct flights and issue tourist visas. These steps aim to heal wounds from the 2020 deadly border clash that significantly worsened their relationship. China’s foreign ministry confirmed they agreed on cross-border exchanges, including trade resumption.
India’s junior foreign minister, Kirti Vardhan Singh, told parliament that India has engaged China to facilitate reopening trade routes, but no exact date was announced. Meanwhile, US-India relations face pressure as America threatens to double tariffs on Indian imports if India continues buying Russian oil, which supports Moscow’s military actions in Ukraine.
Prime Minister Narendra Modi is expected to visit China at the end of August for the Shanghai Cooperation Organisation summit. This would be Modi’s first visit to China since 2018. Beijing has officially welcomed Modi, signaling a possible diplomatic thaw and new opportunities for cooperation.