India, China May Resume Border Trade After 5 Years

KHUSHI KUMARI Image Source: X

After the deadly 2020 clash in Galwan Valley, India and China are now quietly negotiating to restart local border trade

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In June 2020, Indian and Chinese troops clashed along the LAC, killing 20 Indian soldiers—the most severe border violence in decades

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Tensions escalated as China built structures near the LAC, while India's DSDBO road threatened Chinese control—fueling the Galwan conflict

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Following the clash, bilateral relations hit a low, and border trade—from spices to carpets—was suspended along three Himalayan passes

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Pre-2020, border trade via the Himalayan passes totaled just ~$3.16 million—less than 0.1% of total trade—but it served as vital livelihood support

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Resuming trade at passes like Lipulekh, Shipki La, and Nathu La would boost border economies—particularly for mountain traders

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While monetary value is low, reopening signals willingness to rebuild trust. Still, deep mistrust and unresolved border demarcation issues linger

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