India is pushing to restart border trade with China through key Himalayan passes, a move that could reset ties after years of tension. The Ministry of External Affairs (MEA) confirmed on Thursday that discussions with Beijing are ongoing to resume trade through Lipulekh Pass in Uttarakhand, Shipki La Pass in Himachal Pradesh, and Nathu La Pass in Sikkim.
The trading points have been shut since the COVID-19 pandemic, which also coincided with the 2020 Galwan clashes that killed 20 Indian soldiers and at least four Chinese troops.
#WATCH | Delhi | On India-China border trade, MEA spokesperson Randhir Jaiswal says, “…We have remained engaged with the Chinese side to facilitate the resumption of border trade through all the designated trade points- namely Lipulekh Pass in Uttarakhand, Shipki La Pass in… pic.twitter.com/gGW4JJErVY
— ANI (@ANI) August 14, 2025
China Shows Willingness
China has expressed its readiness to reopen trade links. Its foreign ministry said it wants to improve communication with India and highlighted that border trade helps local communities on both sides.
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Small but Long-Standing Trade
For over 30 years, traders exchanged goods like spices, carpets, wooden furniture, cattle fodder, pottery, medicinal plants, electronics, and wool. The trade has always been small in value — in 2017–18, it was just $3.16 million — but it holds symbolic importance for local economies.
Signs of Warming Relations
Reopening border trade is part of a broader easing of tensions. India and China are also resuming direct flights soon. China has relaxed fertiliser export limits to India.
PM Narendra Modi is expected to visit China later this month for the Shanghai Cooperation Organisation summit, where he may meet President Xi Jinping.
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Balancing US Pressure
The timing is notable. Relations with the US have cooled after President Donald Trump imposed steep 50% tariffs on Indian exports. By strengthening trade with China, India could gain more leverage in negotiations with the US and balance its foreign relations.
Trade Sends a Signal
Even though border trade is small economically, it carries a big message. It shows India and China are willing to cooperate, support border communities, and help India diversify its trade partners.
If talks succeed, it will be the first concrete sign of cooperation since the Galwan clash, even as both countries stay cautious along the disputed border.
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