India and China have emphasized the importance of maintaining peace and tranquility in the border areas as a foundation for strengthening their overall bilateral relationship. A statement issued after the 24th round of the Special Representatives’ Dialogue on the Boundary Question said that the two countries agreed to establish an expert group under the working mechanism for consultation and coordination on border issues. This group will explore “early harvest” measures in boundary delimitation in the disputed areas.
They also agreed to form a working group to improve border management and maintain stability along the frontier. Both sides will use existing diplomatic and military mechanisms to carry forward the process of border management and discuss steps toward de-escalation, starting with principles and modalities.
These agreements underscore efforts to normalize relations that had been severely strained since the Galwan Valley clash in 2020. If the peace-building measures move forward as planned, India-China ties could see significant improvement, creating new dynamics in the Indo-Pacific region.
India and China decided to reopen border trade through three designated trading points, Lipulekh Pass, Shipki La Pass, and Nathu La Pass.
Issuing a press statement, a spokesperson at Nepal’s Ministry of Foreign Affairs said that the constitution of Nepal has already incorporated Nepal’s official map, which clearly establishes that Limpuyadhura, Lipulekh and Kalapani, located to the east of the Mahakali River, are integral parts of Nepal. The Nepal government has objected to any activities in the area, reminding both countries that the Kalapani region is an integral part of Nepal.
Similarly, India has said that its position on the matter is consistent and clear. Border trade between India and China through Lipulekh pass commenced in 1954 and has been going on for decades. This trade had been disrupted in recent years due to Covid and other developments, and both sides have now agreed to resume it, India said in a statement. As regards territorial claims, our position remains that such claims are neither justified nor based on historical facts and evidence. Any unilateral artificial enlargement of territorial claims is untenable, the statement issued by India reads.
In 2015, during Indian Prime Minister Narendra Modi’s visit to China, two sides had agreed to hold negotiation on augmenting the list of traded commodities, and expand border trade Nathu La, Qiangla/Lipu-Lekh Pass and Shipki La. At that time, Nepal had protested the India-China agreement sending a protest letter to both countries.
Indian Prime Minister Narendra Modi is visiting China after six years to attend the Shanghai Cooperation Organization (SCO) summit in Tianjin. India and China also discussed a wide range of issues linked to the BRICS Summit. BRICS nations are considering the creation of a common currency, a proposal that has drawn criticism from US President Donald Trump. India and China agreed to support each other in hosting major diplomatic events: India will host the 2026 BRICS Summit, while China will host in 2027. This provides new opportunities for bilateral and regional engagement.
The two sides also agreed to resume direct flight connectivity between the Chinese mainland and India, suspended during the Covid-19 pandemic and not restarted due to strained ties. They will also finalize an updated air service agreement. The Kailash Manasarovar Yatra has already resumed, and beginning next year, the scale of Indian pilgrimages is expected to increase.
In addition, both sides pledged to take concrete measures to facilitate trade and investment flows, jointly maintain peace in the border areas through friendly consultations, and uphold multilateralism. They agreed to enhance coordination on major international and regional issues, maintain a rules-based multilateral trading system with the WTO at its core, and promote a multipolar world that safeguards the interests of developing countries, according to the statement.
After the Doklam crisis, Modi and Chinese President Xi Jinping held two informal summits—the first in Wuhan in April 2018, and the second in Chennai in Oct 2019—which significantly helped improve ties. In 2018, China had proposed a “two plus one” model, under which India and China would consult or cooperate on development projects in South Asian countries. That idea, however, faded amid worsening bilateral ties.
Chinese Foreign Minister Wang Yi noted that since the beginning of this year, bilateral relations have moved onto a path of steady development and the boundary situation has continued to stabilize. He added that China attaches great importance to Prime Minister Modi’s visit to attend the SCO Tianjin Summit and looks forward to India’s active contribution to its success.
