ECONOMY
India, China agree to resume business as usual, China to ease rare earth imports
- IBJ Bureau
- Aug 20, 2025
India and China have agreed to resume direct flights and step up trade and investment flows, as the neighbours rebuild ties damaged by a 2020 border clash.
According to reports, China has also agreed to ease restrictions on rare earth imports to India.
These developments follow Chinese Foreign Minister Wang Yi’s two-day visit to New Delhi for the 24th round of talks with National Security Advisor (NSA) Ajit Doval to resolve decades-old border dispute between the two countries.
Mr Yi also held talks with External Affairs Minister S Jaishankar and Prime Minister Narendra Modi.
The two Asian economies are cautiously strengthening bilateral ties against the backdrop of US President Donald Trump’s unpredictable foreign policy, staging a series of high-level bilateral visits.
The two countries would resume direct flights and boost trade and investment, including reopening border trade at three designated points, and facilitate in visas, India’s External Affairs Ministry has said.
Direct flights have been suspended since the COVID-19 pandemic in 2020. No date has been given for their resumption.
The border talks covered issues related to pulling back troops that both the countries have amassed on their Himalayan border, delimitation of borders and boundary affairs, the ministry has added.
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