India and China Agree to Reset Ties, Flights, and Trade

India and China on Tuesday agreed to revive dialogue mechanisms, resume direct flights and enhance trade and investment flows, signaling a reset in ties strained since the 2020 Galwan Valley clashes.

India and China on Tuesday agreed to revive dialogue mechanisms, resume direct flights and enhance trade and investment flows, signalling a reset in ties strained since the 2020 Galwan Valley clashes.

The Ministry of External Affairs said the two countries would work together to “maintain peace and tranquillity in the border areas through friendly consultations” while addressing each other’s concerns.

The two sides also concluded the 24th round of Special Representatives’ talks on the boundary issue in New Delhi, co-chaired by NSA Ajit Doval and Chinese Foreign Minister Wang Yi.

The Ministry of External Affairs said the two countries have also agreed to reopen border trade at three designated points and revive various dialogue mechanisms and exchanges to strengthen cooperation and address each other’s concerns.

Prime Minister Narendra Modi, after his meeting with visiting Chinese FM, underlined the importance of a fair, reasonable and mutually acceptable settlement of the boundary issue. He added that stable and constructive India-China ties were vital for regional and global peace, and said he looked forward to meeting President Xi Jinping on the margins of the upcoming SCO summit in Tianjin.

Wang, who arrived in Delhi on Monday, conveyed a message and an invitation from Xi to Modi for the SCO meet.

Here are the Details of the agreement

Border Trade: Both sides have agreed to the re-opening of border trade through three designated trading points: Lipulekh Pass, Shipki La Pass, and Nathu La Pass. This marks the revival of border trade after a five-year freeze.

Direct Flights: India and China are set to resume direct flight connectivity at the earliest, with plans to finalize an updated Air Services Agreement. Indian carriers like Air India and IndiGo have reportedly been instructed to prepare for flights to China as early as next month. This is a significant step, as direct commercial flights have been suspended since early 2020 due to the COVID-19 pandemic and subsequent border tensions.

Visa Easing: Both countries have agreed on the facilitation of visas for tourists, businesses, media, and other visitors in both directions. India had already begun issuing tourist visas to Chinese nationals earlier this year, and China has also eased its visa rules for Indian travelers, including removing mandatory online appointments and reducing visa fees.

Diplomatic Momentum: The recent visit of Chinese Foreign Minister Wang Yi to India, where he met with External Affairs Minister S. Jaishankar and National Security Advisor Ajit Doval, underscores the renewed diplomatic efforts. Prime Minister Narendra Modi is also expected to attend the Shanghai Cooperation Organization (SCO) summit in Tianjin, China, marking his first visit to the country in seven years.

Addressing Concerns: China has reportedly committed to addressing India’s concerns regarding rare earths, fertilizers, and tunnel boring machines. Discussions also covered economic and trade issues, pilgrimages (including the resumption of Kailash Mansarovar Yatra), and people-to-people contacts.

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