India, China Edge Toward Reopening Border Trade After Five-Year Freeze

International

NEW DELHI — India and China are in talks to revive cross-border trade through their remote Himalayan passes, five years after it was suspended, in what officials from both nations say could mark a symbolic step toward thawing relations strained by years of geopolitical friction, reported by AFP.

Though the volume of past border trade was modest, its revival would carry outsized diplomatic weight. The two Asian powers, long rivals for influence across South Asia, have been nudged toward dialogue by shifting global trade patterns and disruptions unleashed by U.S. tariffs under former President Donald Trump.

Chinese Foreign Minister Wang Yi is expected in New Delhi on Monday, following Indian Foreign Minister Subrahmanyam Jaishankar’s visit to Beijing in July. The two governments have also agreed to resume direct flights and issue tourist visas — gestures seen as part of a broader reconciliation effort after a deadly 2020 border clash.

“China-India border trade cooperation has long played an important role in improving the lives of people along the border,” Beijing’s foreign ministry said Thursday, noting a consensus had been reached on resuming exchanges. India’s junior foreign minister, Kirti Vardhan Singh, told parliament last week that talks were under way to “facilitate the resumption of border trade.” Neither side offered a timeline.

The diplomatic overtures unfold as India balances ties with Washington — a fellow member of the Quad security alliance alongside Japan and Australia — against U.S. pressure over its purchases of Russian oil. The Biden administration has threatened to double import tariffs on India by August 27 unless New Delhi shifts suppliers.

Indian media have reported that Prime Minister Narendra Modi may visit China in late August for the Shanghai Cooperation Organisation summit. Beijing has publicly welcomed the possibility, though New Delhi has yet to confirm.