India and China announced several key steps to improve their relations, including the reopening of border trade through three designated passes and the resumption of direct flight connectivity. The announcements came after the 24th round of the Special Representatives’ dialogue on the Boundary Question, co-chaired by National Security Advisor Ajit Doval and Chinese Foreign Minister Wang Yi, who was on a two-day visit to India.

During the visit, Wang Yi also met External Affairs Minister S. Jaishankar and later called on Prime Minister Narendra Modi at his residence, where he handed over an invitation from Chinese President Xi Jinping for PM Modi to attend the upcoming Shanghai Cooperation Organisation (SCO) Summit in China.

Both sides described the talks as candid and positive, highlighting the importance of peace along the border for the overall development of bilateral ties. However, even as India and China celebrated their progress, the reopening of border trade through the Lipulekh Pass has drawn sharp objections from Nepal, which calls the territory its own.

What agreements did India & China announce?

The discussions resulted in several important agreements across trade, travel, investment, and border management:

Border trade: Both countries agreed to reopen cross-border trade through Lipulekh, Shipki La, and Nathu La passes, boosting economic activity in border regions.

Flights and visas: Direct flights between India and China will resume soon, with an updated Air Services Agreement. Both sides also promised easier visa processes for tourists, businesspersons, media, and other visitors to improve people-to-people contact.

Investment and cooperation: They pledged to restart bilateral dialogue mechanisms, promote trade and investment flows, and hold the Third India-China High-Level People-to-People Exchanges Meeting in 2026.

Trans-border rivers: Cooperation will be strengthened through the Expert Level Mechanism, and China has committed to sharing hydrological data during emergencies on humanitarian grounds.

Global cooperation: Both reaffirmed their commitment to multilateralism and the World Trade Organisation (WTO). They also agreed to work together for a multipolar world order that protects the interests of developing nations.

On the sensitive boundary issue, the two sides agreed to set up an Expert Group under the Working Mechanism for Consultation and Coordination on India-China Border Affairs (WMCC) to explore “early harvest” solutions in boundary delimitation. They also decided to establish a new working group to advance effective border management and maintain peace.

Both sides noted that peace has largely been maintained since the last round of talks and stressed that stability is necessary for overall ties.

Additionally, India reaffirmed support for China’s SCO Summit in Tianjin, while China welcomed India’s hosting of the 2026 BRICS Summit and promised support for India when it hosts the 2027 BRICS Summit.

Why is Nepal objecting to the reopening of trade through Lipulekh Pass?

While India and China view the reopening of trade routes as a positive step, Nepal strongly objects to the inclusion of Lipulekh Pass.

Nepal’s claims:

Nepal considers Lipulekh, along with Kalapani and Limpiyadhura, as part of its territory. In 2020, it even released a new political map including these areas, a move that India rejected. Nepal bases its claim on the 1816 Sugauli Treaty signed with the British East India Company, which states that land east of the Kali River belongs to Nepal.

According to Nepal, the river originates from Limpiyadhura, northwest of Lipulekh, which would make Lipulekh part of its territory. It also points to old maps and administrative records from the early 19th century as evidence. Nepal argues that the territory was ceded to the British after the Anglo-Nepalese War (1814–1816), but historically, it belonged to Nepal.

India’s position:

India has firmly rejected Nepal’s claims. The Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal said, "Our position in this regard has been consistent and clear. Border trade between India and China through Lipulekh Pass commenced in 1954 and has been going on for decades."

He further added, "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."

In short, India believes that Nepal’s claims are politically motivated and not supported by historical agreements.

Why is Lipulekh Pass so important?

The Lipulekh Pass, located at an altitude of around 17,000 feet in the Himalayas, is a trijunction between India, Nepal, and Tibet (China). Its importance lies in religion, strategy, and trade.

  1. Religious and cultural importance: It is the shortest route for the Kailash Mansarovar Yatra, a sacred pilgrimage for Hindus. Historically, pilgrims have used this pass to reach Tibet’s Taklakot.
  2. Strategic significance for India: The pass allows India quick access to Tibet and is crucial for military movement in the region. In 2020, India completed an 80 km road to Kailash Mansarovar, cutting travel time to just 2–3 days. This also allows faster troop movement near the border, enhancing India’s defence preparedness.
  3. China’s interest: For China, Lipulekh provides better connectivity across the Himalayan region and can boost trade. While China supported Nepal’s claims in 2015 as part of its anti-India strategy, it now views reopening the pass as a way to repair ties with India after the deadly Galwan Valley clash in 2020, where 20 Indian soldiers lost their lives.

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