India and China share a complicated relationship. The world’s two most populous nations are outright regional rivals who fought a border war in the 1960s. Relations have been at a low point since border clashes in 2020 left soldiers dead on both sides.

India and China have agreed to resume border trade through the Lipulekh pass, which Nepal claims as its territory. The trade was disrupted in recent years due to Covid and other issues.

India and China agree to maintain peace and tranquillity along the LAC, set up an expert group for boundary delimitation, and resume direct flights, border trade.

National Security Advisor Ajit Doval and visiting Foreign Minister Wang Yi have agreed that both armies will adopt a non-offensive posture on the border.

India has decided to restart trade with China through three border routes: Lipulekh Pass in Uttarakhand, Shipki La in Himachal Pradesh, and Nathu La in Sikkim.

The Ministry of External Affairs on Wednesday dismissed Nepal's objection to the resumption of India's border trade with China through Lipulekh pass, calling Kathmandu's territorial claim over the trade route as 'untenable' and not based on 'historical facts and evidence.

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

The move comes against the backdrop of disengagement efforts in eastern Ladakh following the 2020 border clashes.