India and China Move to Normalize Ties with Border Trade

India and China are taking steps to normalize bilateral relations, highlighted by the planned resumption of commercial trade through the Nathu La Pass and Lipulekh starting August 1. These activities were suspended in 2020 following a deadly border skirmish in eastern Ladakh and the Covid-19 pandemic.

As part of this diplomatic push, Vikram Misri, the Indian Foreign Secretary, conducted an official visit to Beijing on July 27, 2026. Misri met with Vice Foreign Minister Hua Chunying, Vice Minister Sun Haiyan of the Central Committee of the Communist Party of China, and Deputy Secretary General Hong Liang to discuss implementing leadership guidance for bilateral relations. The officials focused on enhancing political, academic, and people-to-people exchanges and acknowledged the importance of maintaining peace and tranquillity in border areas.

This visit follows a July 21 meeting in Manila between Indian External Affairs Minister S. Jaishankar and Chinese Foreign Minister Wang Yi. During those talks, Jaishankar asserted that stability along the Line of Actual Control is a non-negotiable prerequisite for restoring standard diplomatic engagements. He also raised concerns regarding trade deficits and market entry barriers.

In tandem with these diplomatic efforts, New Delhi has cleared Chinese investment in mobile phone manufacturing and the power sector. These moves follow an ongoing trend of gradual normalization since the 2024 meeting between Prime Minister Narendra Modi and President Xi Jinping in Kazan.