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Wednesday
20 Aug 2025

India, China Agree to Resumes, Boost Business Links

20 Aug 2025  by Reuters   
On August 19, 2025, in New Delhi, India and China announced plans to resume direct flights and enhance trade and investment cooperation, marking a step toward rebuilding relations strained since 2020. The agreement includes reopening border trade at three designated points and facilitating visa processes, according to India’s foreign ministry. Direct flights, halted since the COVID-19 pandemic, are set to resume, though no specific date was provided.


China's Foreign Minister Wang Yi attends the 15th East Asia Summit Foreign Ministers’ meeting during the 58th Association of Southeast Asian Nations (ASEAN) Foreign Ministers’ meeting and related meetings at the Convention Centre in Kuala Lumpur on July 11, 2025.

The announcement followed a two-day visit by Chinese Foreign Minister Wang Yi to New Delhi for the 24th round of border talks with India’s National Security Advisor Ajit Doval. Discussions focused on troop disengagement along the Himalayan border, border demarcation, and related issues. Both nations agreed to establish a working group to coordinate on border affairs and advance demarcation negotiations, covering the eastern and middle border sections, with further talks on the western section planned soon, according to a Chinese foreign ministry statement released on August 20, 2025. The next meeting is scheduled for 2026 in China.

“Stable, predictable, constructive ties between India and China will contribute significantly to regional as well as global peace and prosperity,” said Indian Prime Minister Narendra Modi in a post on X after meeting Wang. Modi is set to visit China later this month for the Shanghai Cooperation Organisation summit, his first trip there in over seven years.

During the talks, Indian Foreign Minister Subrahmanyam Jaishankar raised concerns about a major dam project on the Yarlung Zangbo river in Tibet, which becomes the Brahmaputra in India and Bangladesh, supporting millions downstream. India emphasized the need for transparency due to the dam’s potential impact on lower riparian states. In response, China agreed to share emergency hydrological data on relevant rivers based on humanitarian principles, the Chinese foreign ministry stated. Both countries committed to an expert-level mechanism for cross-border river management and to renew flood reporting arrangements.

“The stable and healthy development of China-India relations is in the fundamental interests of the two countries’ people,” Wang Yi told Doval, advocating for increased mutual trust and expanded cooperation. The agreements reflect a mutual commitment to fostering constructive dialogue and collaboration, aiming to support regional stability and economic growth through enhanced trade, investment, and border management coordination.

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