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 has successfully test-fired an indigenously developed intermediate-range ballistic missile capable of carrying a nuclear warhead deep into the territory of its geopolitical rival, China, just as Prime Minister Narendra Modi prepares for his first visit there in years.

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.

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.

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.

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.

The long-frozen air corridor between India and China is opening again after more than five years of closed skies.

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

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.