India, China hit reset amid Trump tariffs; border trade, direct flights to resume

New Delhi: In a significant move to reset strained ties, India and China on Tuesday unveiled a series of measures to build a "stable, cooperative and forward-looking" partnership. The initiatives include reopening border trade, facilitating investment flows, resuming direct flights, easing visas, and jointly maintaining peace along the frontier.

The announcements came after two days of high-level talks between Chinese Foreign Minister Wang Yi and Indian leaders, including Prime Minister Narendra Modi, External Affairs Minister S Jaishankar and National Security Advisor Ajit Doval. The meeting assumes significance amid the global disruptions caused by Trump's tariffs. A Chinese statement after the meeting quoted Wang Yi that the world is experiencing a “once-in-a-century transformation at an accelerating pace”. In an apparent swipe at Washington, he said “unilateral bullying is rampant” and that free trade and the international order are under severe strain.

India and China outlined the key measures taken by the two nations in a joint document following Doval’s discussions with Wang under the Special Representatives’ dialogue framework. Both sides agreed to set up an expert group to work on boundary delimitation, expand consultation mechanisms across the eastern, middle and western sectors of the Line of Actual Control (LAC), and strengthen border management to ensure peace and stability.

Key decisions

Border management and delimitation

• Expert group to be established under the Working Mechanism for Consultation and Coordination  on India–China Border Affairs (WMCC)  to work on an “early harvest” in boundary delimitation.
• New working groups for effective border management in eastern and middle sectors, in addition to the western sector.
• Use of diplomatic and military mechanisms to carry forward discussions on de-escalation and maintaining peace.

Trade and investment

• Reopening of border trade through Lipulekh, Shipki La and Nathu La passes.
• Steps to facilitate trade and investment flows between the two countries.

Connectivity and travel

• Early resumption of direct flights between Indian cities and the Chinese mainland.
• Finalisation of an updated Air Services Agreement.
• Easier visas for tourists, businesspersons, media and other visitors.

Pilgrimage
Expansion of the Kailash Mansarovar Yatra from 2026, allowing more Indian pilgrims to travel.

Trans-border rivers

• Strengthening cooperation through the expert-level mechanism.
• China to share hydrological information during emergencies on humanitarian grounds.

Counter-terrorism

• India strongly raised the issue of terrorism, including cross-border terrorism.
• Both sides agreed counter-terrorism should remain a top priority within the SCO framework.

During his meeting with Wang, Prime Minister Modi underlined the importance of maintaining peace and tranquillity along the frontier and reiterated India’s commitment to a fair and mutually acceptable resolution of the boundary question.

In a post on X, he said: “Stable, predictable and constructive ties between India and China will contribute significantly to regional as well as global peace and prosperity.”

Wang conveyed President Xi Jinping’s invitation for Modi to attend the Shanghai Cooperation Organisation (SCO) summit in Tianjin later this month. Modi accepted the invitation and said he looked forward to meeting Xi on the sidelines of the summit on August 31–September 1.

The initiatives mark a major thaw in relations that were severely strained after the deadly Galwan Valley clashes in 2020. Although troops have disengaged from key friction points like Demchok and Depsang, about 50,000–60,000 soldiers from each side remain stationed along the LAC in eastern Ladakh.

NSA Doval noted an "upward trend" in bilateral engagement over the past nine months, with relative calm along the border. He said the environment created by disengagement and diplomatic efforts had helped both countries advance cooperation in other areas. Wang echoed the sentiment, describing the current phase as an "important opportunity of improvement and growth" and called for enhanced mutual trust through dialogue and cooperation.