China and India set to rekindle air travel and bolster commerce
India and China Reach Landmark Agreements on Border Peace, Trade, and Economic Cooperation
India and China have reached a series of significant agreements during high-level talks, focusing on border peace, reopening trade routes, restoring flights, and enhancing economic cooperation. The latest understandings come after the 24th Round of Special Representatives' talks on the boundary question held in August 2025, marking a positive step towards maintaining peace and tranquility along the border after earlier tensions.
One of the key agreements involves the reopening of border trade through three traditional trading points - Lipulekh Pass, Shipki La, and Nathu La. This move is expected to revive local commerce in the affected regions. Additionally, both countries have committed to resuming direct flights between India and China and updating the bilateral Air Services Agreement to enhance connectivity.
In terms of economic cooperation, both nations have agreed to facilitate trade and investment flows with measures addressing India's concerns about Chinese export curbs on key commodities like fertilizers and rare earths.
Regarding the border dispute, the talks produced a ten-point consensus emphasizing peaceful resolution, de-escalation, and maintaining tranquility. They decided to strengthen existing mechanisms like the Working Mechanism for Consultation and Coordination with new expert and working groups to progress on boundary delimitation and border management.
However, the Yarlung Zangbo dam issue, a significant hydrological and geopolitical concern for India, was not explicitly addressed in the recent talks. The Yarlung Zangbo (Brahmaputra) dam, which becomes the Brahmaputra as it flows into India and Bangladesh, is often a topic in bilateral dialogues due to potential downstream impacts.
In other developments, China has agreed to share emergency hydrological information on relevant rivers with India on humanitarian principles. The Indian foreign ministry has also confirmed that they will work to make visa procedures easier for travellers and business people. China will maintain communication to renew flood reporting arrangements.
India has expressed concerns about the implications of the Yarlung Zangbo dam for lower riparian states. Chinese officials have previously stated that hydropower projects in Tibet will not have a major impact on the environment or on downstream water supplies.
The mechanism will extend talks to cover the eastern and middle sections of the border. Both sides have also agreed to engage an expert-level mechanism on cross-border rivers. India's Prime Minister Modi is scheduled to visit China at the end of this month.
These agreements mark a significant step forward in India-China relations, with both nations focusing on strengthening economic ties and maintaining peace along their shared border.
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