India and China resume border trade via Lipulekh Passresume border trade via Lipulekh Pass after six-year halt
India and China are preparing to restart border trade through the Lipulekh Pass in Uttarakhand's Pithoragarh district this year, following a six-year suspension since 2019 due to the COVID-19 pandemic. District officials received directives from the central government, including clearances from the Ministries of External Affairs, Home Affairs, and Commerce, to organize the seasonal trade session from June to September. Local traders welcome the move to access stored goods in Tibet.
This resumption signals efforts to stabilize economic ties amid ongoing border tensions, building on recent patrolling agreements in Depsang and Demchok from October 2024. It highlights a pattern of growing bilateral trade exceeding $136 billion in 2023 despite military buildups along the 3,500-kilometer Line of Actual Control. The development may ease local pressures while diplomatic talks continue to prevent escalations.
Indian Perspective
Authorities view the trade resumption as a practical step to support border communities and retrieve stranded goods, following necessary security clearances. It aligns with diplomatic progress like the 2024 patrolling agreements, aiming to restore pre-2020 status quo without compromising defense postures. Officials emphasize coordination with China to ensure smooth operations amid heightened vigilance.
Chinese Perspective
Beijing engages in bilateral consultations on SCO affairs and supports trust-building measures like resuming pilgrimages and trade. Diplomats highlight mutual economic benefits and upward trends in ties since high-level meetings. They frame border stability as essential for broader cooperation without altering territorial claims.
- Lipulekh Pass, at 5,300 meters, links Uttarakhand to Tibet near Nepal tri-junction.
- It has served as ancient route for Kailash Mansarovar pilgrimage.
- Nepal disputes Lipulekh under 1816 Treaty of Sugauli over Kali River.
US-China Military Escalation Indo-Pacific
The United States conducted its first operational firing of the Typhon mid-range missile system from the Philippines on May 5, 2026, during joint exercises with Manila, Japan, Australia, France, Canada, and New Zealand. The Tomahawk cruise missile traveled over 600 kilometers from Leyte to strike a target in Nueva Ecija, demonstrating long-range strike capability that can reach the South China Sea, Taiwan Strait, and parts of mainland China. China condemned the deployment as provocative and responded with its own naval drills, while tensions escalated further when Taiwan's coast guard expelled a Chinese research vessel suspected of conducting underwater surveillance near the island.
