India and China agreed on Tuesday to resume direct flights and step up trade and investment flows as the neighbours rebuild ties damaged by a 2020 border clash.

Indian Prime Minister Narendra Modi has met China's top diplomat and hailed the “steady progress” made in improving the countries' relationship after a yearslong standoff between the nuclear-armed powers.

Border trade between India and China through Lipulekh Pass had commenced in 1954 and had been going on for decades till it was disrupted by.

India and China have made ‘steady progress’ in their ties, said PM Narendra Modi after meeting with China’s Foreign Minister Wang Yi. As the Chinese official ends his visit to the nation, there have been quite a few positives: Both countries have decided to work on the settlement of the boundary question.

Nepal has reiterated its claim over the Lipulekh territory, stating it is an inseparable part of the country, after India and China agreed to resume border trade through the area. The Nepalese government has incorporated the territory into its official map and Constitution.

There is an upward trend in India-China relations and Beijing has promised to address New Delhi's needs on rare earths, a top Indian official and a source said on Tuesday, as the neighbours rebuild ties that were damaged by a 2020 border clash.

Mutual distrust remains deep but progress reflects pragmatic efforts on both sides to gain leverage in shifting global order, experts say.

Amid US President Donald Trump's unpredictable foreign policy, Asian giants — India and China — are cautiously strengthening ties by staging a series of high-level bilateral visits.

There is an upward trend in India-China relations and Beijing has promised to address New Delhi's needs on rare earths, a top Indian official and a source said on Tuesday, as the neighbours rebuild ties that were damaged by a 2020 border clash.

India and China have agreed to enhance border dispute resolution efforts following talks between NSA Ajit Doval and Chinese Foreign Minister Wang Yi.