close
close

Mondor Festival

News with a Local Lens

India eyes trade ties with China after border dispute resolved
minsta

India eyes trade ties with China after border dispute resolved



A representative image showing Chinese and Indian security personnel at the Indo-China border. — AFP/File
A representative image showing Chinese and Indian security personnel at the Indo-China border. — AFP/File

India and China will review “other aspects” of their bilateral relations in a calibrated manner now that they have completed the withdrawal of their troops from the last two clash points on their Himalayan border, the Indian minister said on Tuesday of Foreign Affairs.

The comments come six weeks after New Delhi and Beijing reached an agreement to resolve a four-year military standoff that has damaged relations between the Asian giants, indicating that India is ready to improve trade ties that have also been undermined.

Relations between the world’s two most populous nations – both nuclear powers – have been strained since clashes between their troops on the western Himalayan border left 20 Indian soldiers and four Chinese soldiers dead in 2020.

India has cut direct air links with China, banned hundreds of Chinese mobile apps and added layers of controls on Chinese investments, saying relations could not be normal if there were no peace on the border.

China has maintained that the border conflict should not hamper the rest of the relationship.

Indian Foreign Minister Subrahmanyam Jaishankar addresses a press conference. — Reuters/File
Indian Foreign Minister Subrahmanyam Jaishankar addresses a press conference. — Reuters/File

“The conclusion of the disengagement phase now allows us to consider other aspects of our bilateral engagement in a calibrated manner, keeping our national security interests above all else,” Foreign Minister Subrahmanyam Jaishankar told Parliament, without more details.

“We are clear that maintaining peace and tranquility in the border areas is a prerequisite for the development of our relations,” he said, adding that senior officials and diplomats of the two countries will meet would meet soon to discuss next steps.

“In the coming days, we will discuss both de-escalation and effective management of our activities in the border areas,” Jaishankar said.

The mostly undemarcated border of about 4,000 km (2,500 miles) runs along the Himalayas and has been a source of tension between the neighbors for decades, including a brief but bloody war in 1962.

Chinese President Xi Jinping and Indian Prime Minister Narendra Modi meet on the sidelines of the BRICS summit in Kazan, Russia, October 23, 2024. — Reuters
Chinese President Xi Jinping and Indian Prime Minister Narendra Modi meet on the sidelines of the BRICS summit in Kazan, Russia, October 23, 2024. — Reuters

Ties stabilized after diplomatic negotiations and a series of agreements were reached starting in 1991 and trade and commerce links boomed until disrupted by clashes in summer 2020.

Days after the two sides reached an agreement in October to end the border conflict, Chinese President Xi Jinping and Indian Prime Minister Narendra Modi held their first formal talks in five years and agreed to resolve their differences and to strengthen their relationships.

Indian officials said New Delhi should tread carefully and take only modest steps to strengthen economic ties, given the trust deficit of the past four years. Resumption of direct flights and speeding up visa approval should be among the first steps, they said.