China and India edge closer with trade and travel revival

Xi Jinping meets Narendra Modi at BRICS summit in Russia, 23 October, 2024.
Reuters

China and India are cautiously rebuilding ties with plans for direct flights, trade revival, and high-level meetings, signaling a thaw in relations after years of tension. The moves come as both nations face shifting dynamics with the United States.

Chinese Foreign Minister Wang Yi will visit New Delhi next week for talks with India's National Security Adviser Ajit Doval on their disputed Himalayan border — the second such meeting since a deadly 2020 clash.

Later this month, Indian Prime Minister Narendra Modi will meet Chinese President Xi Jinping in China for the Shanghai Cooperation Organisation summit, marking his first visit in seven years.

The recent diplomatic push follows an October agreement easing patrol tensions along the border, which had long strained trade, investment, and air travel.

Ties have been further boosted amid new frictions between India and the U.S., after President Donald Trump imposed steep tariffs on Indian exports. Meanwhile, Beijing and Washington extended a tariff truce for another 90 days.

China and India have already agreed to resume direct flights suspended since 2020 and are discussing easing trade barriers, including reopening border trade at three Himalayan crossings.

While such trade represents a small share of their $127.7 billion annual exchange, its revival is viewed as a symbolic step toward normalizing ties.

"We have remained engaged with the Chinese side to facilitate the resumption of border trade through all the designated trade points," India's foreign ministry spokesperson, Randhir Jaiswal, told on Thursday.

Both governments say the move will benefit residents along the border and foster people-to-people exchanges.

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