India and China Resume Border Trade Across Three Himalayan Passes

The Government of India and the Government of China resumed cross-border trade on August 1 and 2, 2026, reopening the Shipki La, Lipulekh, and Nathu La mountain passes. These historic corridors had been suspended since 2019 or 2020 due to the COVID-19 pandemic and heightened tensions following the Galwan Valley clashes. The reopening is part of a broader effort to normalize bilateral relations and provide an economic boost to remote Himalayan communities.

At the Shipki La pass in Himachal Pradesh, Revenue and Horticulture Minister Jagat Singh Negi inaugurated the Chhuppan Trade Mart, a 1.70 crore facility, and flagged off 16 traders carrying goods such as jaggery, rice, and carpets. Trade here operates on a barter system involving 72 Indian and 30 Tibetan item categories. In Sikkim, trade resumed at the Nathu La pass, focusing on 36 permitted goods. Thirty-eight registered traders were issued passes, while the Indo-Tibetan Border Police deployed additional troops, including its first all-women unit, to secure the area. In Uttarakhand, 20 Indian traders entered Tibet via the Lipulekh Pass to assess facilities and retrieve goods left in storage since 2019.

Local trade associations and the Sikkim government have already requested the central government to expand the approved trade basket to include modern industrial products and increase the daily trading limit of 2 lakh rupees per trader. While live animal trade is permitted, it remains suspended this season pending the establishment of quarantine centers. Trade is expected to continue through October or November, depending on mutual agreement.