China and India resume direct flights and border trade amid U.S. tariffs: 'Strange bedfellows'

Agreement reached after 5 years since border trade clash

The two countries to share hydrological data for flood prevention

China and India have agreed to resume border trade and the operation of direct flights. It's been about five years since trade and flights were suspended due to an armed clash in the border region in 2020 that resulted in the deaths of more than 20 soldiers from both countries.

On the 19th (local time), according to Reuters, the Indian Ministry of External Affairs announced, "We have agreed with China to resume border trade through three designated trading points, and to take specific measures to promote the flow of trade and investment between the two countries." Following the 1962 border war, the two countries continued with various armed conflicts, eventually resulting in a bloody clash in the Galwan Valley, Ladakh, Western Himalayas, in June 2020. That incident led to the deaths of 20 Indian soldiers and 4 Chinese soldiers, which caused both countries to cut off border trade and the operation of direct flights.

Through this agreement, the two countries also decided to restore direct passenger air routes that were suspended after 2020. The Indian Ministry of External Affairs stated, "We have agreed to resume direct flights connecting mainland China and India as soon as possible." This is seen as a symbolic step towards normalizing human and material exchanges. As a result, visa issuance procedures will also be eased. The two sides have decided to facilitate the travel of tourists, businesspeople, and journalists, and will support each other's BRICS summits, to be held in India and China in 2026 and 2027, respectively. This year also marks the 75th anniversary of diplomatic relations, and the two countries will cooperate in preparing commemorative events.

China has agreed to provide India with hydrological data. This is a humanitarian measure to minimize damage to downstream areas in India in emergencies such as floods. The two countries have clashed in the past over the sharing of river level information.

This agreement was made on the occasion of a visit to India by Wang Yi, Director of the Office of the Central Foreign Affairs Commission and Minister of Foreign Affairs of the Communist Party of China. From the 18th, Minister Wang visited the Indian capital, New Delhi, to hold talks with Subrahmanyam Jaishankar, India's Minister of External Affairs, discussing border stability and trade issues.

China and India are drawing closer while facing a tariff war with the Donald Trump administration in the United States. The Trump administration imposed a total tariff rate of 50% on India. Along with Brazil (50%), this was among the highest levels among U.S. trading partners. Meanwhile, Narendra Modi, Prime Minister of India, is scheduled to visit China for the Shanghai Cooperation Organisation (SCO) summit on the 31st, for the first time in seven years.

Reporter Lee Hyein hey@hankyung.com