Bloomberg reported on August 14 that China and India are in talks to resume border trade for the first time in five years. Relations between the two countries had cooled following a border dispute in 2020, but with India becoming the next target of U.S. President Donald Trump's tariffs after China, the two sides are now seeking to cooperate again.
According to sources, the two countries are discussing ways to resume border trade at specific locations.
Indian Prime Minister Narendra Modi (left) and Chinese President Xi Jinping. Photo by Reuters and Yonhap News
The Chinese Foreign Ministry told Bloomberg, "Border trade has long played an important role in improving the livelihoods of residents in the border regions of both countries," adding that China is willing to strengthen communication and cooperation with India regarding the resumption of trade.
China and India suspended border trade after a military clash near the Himalayas in 2020. At that time, a bloody conflict broke out in the Galwan Valley in Ladakh, northern India, a disputed border area, resulting in the deaths of around 20 soldiers from both sides. Although the two countries even fought a war over border issues in 1962, they have still not finalized their border and remain separated by the 3,488-kilometer-long Line of Actual Control (LAC).
For more than 30 years, the two countries have traded spices, carpets, livestock feed, ceramics, and medicinal herbs at three border points near the Himalayas. According to the most recent data from 2017-2018, the scale of border trade between the two countries was estimated at $3.16 million.
Bloomberg described the move to resume border trade as another sign that tensions between the two countries are gradually easing. The outlet also reported on August 12 that China and India are expected to resume direct flights as early as next month. Additionally, China has relaxed export restrictions on urea to India.
Indian Prime Minister Narendra Modi is scheduled to visit China for the first time in seven years to attend the Shanghai Cooperation Organization (SCO) summit, which opens on August 31, and to hold a bilateral meeting with Chinese President Xi Jinping.
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