In a sign of thawing tensions, India and China are in talks to restart border trade — five years after it came to a standstill. Officials from both nations have confirmed the discussions, which come at a time when global trade dynamics are shifting under the pressure of US tariffs.
While trade through the remote, high-altitude Himalayan passes has historically been small in volume, the move carries deep symbolic weight. It’s about more than goods — it’s about trust, connection, and rebuilding a fragile relationship between two of Asia’s largest powers.
Once rivals for influence in South Asia, India and China now find themselves navigating a changing world order. US tariff policies, first imposed during Donald Trump’s presidency, have disrupted established trade routes and partnerships, pushing countries to reassess their alliances.
Diplomatic engagement has been increasing. In July, Indian External Affairs Minister Subrahmanyam Jaishankar visited Beijing, and now, Chinese Foreign Minister Wang Yi is expected in New Delhi. Agreements to restart direct flights and issue tourist visas are already in motion — a hopeful signal after the 2020 border clash that left the relationship bruised.
“For a long time, China–India border trade cooperation has played an important role in improving the lives of people living along the border,” China’s foreign ministry said, adding that both sides have reached a consensus to resume these exchanges.
India’s junior foreign minister, Kirti Vardhan Singh, told parliament that talks are underway to “facilitate the resumption of border trade,” though no official date has been announced.
This shift also comes against a backdrop of delicate diplomacy with the United States. Washington sees India as a key partner in countering China’s influence, yet recent tensions over India’s purchase of Russian oil have strained ties. The US has warned it will double import tariffs on India by August 27 if crude supplies aren’t sourced elsewhere.
Indian media has also hinted at a possible visit by Prime Minister Narendra Modi to China in late August — his first since 2018. While not confirmed, Beijing has openly welcomed the idea, especially with the Shanghai Cooperation Organisation summit on the horizon.
If border trade does resume, it won’t just be about economic gain. It will be about rebuilding bridges — both literal and diplomatic — in one of the world’s most sensitive geopolitical landscapes.
