India and China Agree to Resume Border Trade

Subrahmanyam Jaishankar, the Indian Foreign Minister, met with Chinese Foreign Minister Wang Yi on the sidelines of a regional gathering in Manila to discuss repairing diplomatic and economic relations. The meeting focused on normalizing ties following a 2020 border clash, with both nations working to stabilize their relationship through a series of coordinated steps.

Jaishankar pressed China to address critical concerns regarding fair market access and a significant trade imbalance. India's imports from China reached US$132 billion in fiscal year 2025/26, creating a trade deficit exceeding US$100 billion. He stated that peace and tranquility in border areas is the essential prerequisite for the restoration of normal relations.

Since October 2024, both governments have taken concrete steps to rebuild ties, including the resumption of direct flights and the streamlining of business visas for Chinese professionals. As part of this progression, the two countries are scheduled to resume border trade on August 1, ending a six-year hiatus.