India and China are holding talks to restart border trade in locally produced goods for the first time in more than five years, in what officials say is a modest but symbolic step toward easing tensions between the Asian neighbors.
According to Indian officials familiar with the discussions, both sides have proposed reopening designated trading points along their disputed 3,488-kilometer Himalayan frontier. The talks remain confidential, and no formal timeline has been set.
In a statement Thursday, China’s Ministry of Foreign Affairs said Beijing was “willing to step up communication and coordination with India” on the matter, noting that such trade “has long played an important role in improving lives of the two countries’ border residents.” India’s Ministry of External Affairs has yet to comment publicly.
For more than three decades, the two nations exchanged locally made goods — including spices, carpets, wooden furniture, cattle fodder, pottery, medicinal plants, electric items, and wool — through three approved trading points. The trade volume was modest, valued at just $3.16 million in the 2017–18 fiscal year, according to government data.
These cross-border exchanges were halted during the COVID-19 pandemic, which coincided with a sharp downturn in relations following deadly clashes in the Himalayas in 2020 that left 20 Indian soldiers and at least four Chinese troops dead.
The move to resume trade follows a series of tentative steps toward normalization. Earlier this week, Bloomberg News reported that direct flights between the two countries are expected to restart as soon as next month. Beijing has also eased restrictions on some fertilizer exports to India.
Diplomatic activity is set to intensify next month when Prime Minister Narendra Modi visits China for the first time in seven years to attend the Shanghai Cooperation Organisation summit. Modi is expected to meet Chinese President Xi Jinping on the sidelines.
The gradual thaw in ties comes as India’s relationship with Washington faces fresh strain. U.S. President Donald Trump has imposed a 50% tariff on Indian exports — significantly higher than those levied on other regional economies — adding pressure on New Delhi to diversify its economic and diplomatic engagements.
