India and China Resume Border Trade to Normalize Ties

India and China are implementing a series of confidence-building measures to normalize bilateral relations following a deadly 2020 border clash in the Galwan Valley. The two nations will resume border trade through the Lipulekh, Shipki La, and Nathu La passes starting August 1, ending a six-year hiatus. Other progress includes the resumption of direct flights, updated visa regimes, and the restart of the Kailash Manasarovar Yatra.

Subrahmanyam Jaishankar, India's External Affairs Minister, met with Chinese Foreign Minister Wang Yi in Manila on July 23 during ASEAN-related meetings. Jaishankar emphasized that peace and tranquility along the Line of Actual Control is a prerequisite for restoring normal diplomatic ties. He also pressed China for fair market access and a more balanced trade relationship, noting a significant trade deficit where Indian exports totaled only $16.6 billion against bilateral trade of $151 billion in fiscal year 2026.

Wang Yi expressed China's readiness to handle sensitive issues and urged the consolidation of positive momentum, particularly within the BRICS framework. This diplomatic thaw was furthered on July 27 when Indian Foreign Secretary Vikram Misri visited Beijing to meet with Vice Foreign Minister Hua Chunying and other senior officials to discuss political and people-to-people exchanges. These efforts follow a 2024 meeting between Prime Minister Narendra Modi and President Xi Jinping in Kazan, with some reports suggesting that U.S. tariff policies under Donald Trump also drove the two major developing economies toward economic stability.