The Ministry of External Affairs (MEA) on Tuesday, 28 July confirmed that India and China are actively implementing their agreed plan to resume border trade through three designated crossing points — Lipulekh Pass, Shipki La Pass, and Nathu La Pass. The move follows a bilateral understanding reached in August 2025 and marks a concrete step in the ongoing normalisation of ties between the two neighbours.

The August 2025 Agreement

MEA spokesperson Randhir Jaiswal, speaking at the bi-weekly media briefing in New Delhi, traced the decision to a press release issued on 19 August 2025. 'Both sides had agreed that border trade through three designated trading points, namely Lipulekh, Shipki La, and Nathu La Pass would be resumed. It is a decision which was taken at that time, and we had informed you as and when these discussions took place. And now those things are being taken forward,' Jaiswal said.

The original agreement was reached during a high-stakes diplomatic visit in which National Security Advisor (NSA) Ajit Doval met Chinese Foreign Minister Wang Yi in New Delhi for a fresh round of Special Representatives (SR) dialogue on the boundary question. During the same visit, Wang Yi held bilateral talks with External Affairs Minister (EAM) S. Jaishankar and called on Prime Minister Narendra Modi.

Recent Diplomatic Momentum

The border trade announcement is backed by an intensifying diplomatic calendar. On Monday, Foreign Secretary Vikram Misri, currently on an official visit to Beijing, called on China's Vice Minister of Foreign Affairs, Hua Chunying. According to a statement posted on X by the Embassy of India in China, the two sides 'reviewed the entire gamut of bilateral relations' and 'discussed means of advancing the vision of the two leaders that India and China are partners and development opportunities for each other, including through mutually beneficial outcomes across trade and economic ties, culture, and people-to-people exchanges.'

The statement added that 'both sides acknowledged the importance of maintaining peace and tranquillity in the India-China border areas.'

Jaishankar's Manila Meeting with Wang Yi

Last week, EAM Jaishankar met Wang Yi in Manila on the sidelines of the ASEAN meetings, where discussions covered bilateral relations, border stability, and key regional and global developments. In his opening remarks, Jaishankar described peace and tranquility in the border areas as a 'prerequisite' for normal ties.

'Peace and tranquility in the border areas is obviously the prerequisite for normal ties. Since October 2024, both sides have engaged to ensure that important objective. This will continue to need our constant attention. Relevant mechanisms in this domain must be given full support and strong encouragement,' Jaishankar said.

Context: A Relationship in Cautious Recovery

The resumption of border trade is the most tangible economic signal yet of a relationship that had been severely strained since the Galwan Valley clash of 2020. Trade through these mountain passes had been suspended as diplomatic and military tensions escalated. The three passes — Lipulekh in Uttarakhand, Shipki La in Himachal Pradesh, and Nathu La in Sikkim — have historically served as vital arteries for cross-border commerce and cultural exchange.

In June, Wang Yi had also called on Prime Minister Modi in New Delhi during the meeting of BRICS National Security Advisers and High Representatives on National Security, further signalling Beijing's intent to stabilise the bilateral relationship. The pace of high-level engagements since October 2024 suggests both capitals have made a deliberate choice to decouple border normalisation from broader geopolitical competition.

The next phase will test whether operational implementation on the ground matches the diplomatic momentum at the top.