India and China agree on talks to resolve issues of concern in trade, economics
The decision was taken during a meeting between foreign secretary Vikram Misri and Chinese vice foreign minister Sun Weidong in New Delhi on Thursday.
India and China have agreed to hold talks aimed at resolving specific issues of concern in the fields of trade and economics as they work to stabilise and rebuild bilateral ties following the end of the military face-off in Ladakh sector of the Line of Actual Control (LAC).
The decision to hold the “functional dialogues” was taken during a meeting between foreign secretary Vikram Misri and Chinese vice foreign minister Sun Weidong in New Delhi on Thursday. The two sides further agreed to speed up efforts to resume direct air services, suspended since 2020. Sun also met National Security Adviser Ajit Doval.
The talks between Misri and Sun, a former envoy to India, were part of a series of meetings held since the two sides reached an understanding last October on withdrawing troops from the two remaining “friction points” on the LAC in order to end the face-off that began in April-May 2020. They were held at a time when there is growing concern in India over the impact of China’s curbs on rare earth exports, particularly on manufacturers of electric vehicles.
A readout issued by the external affairs ministry on Friday said that the two sides “agreed to hold certain functional dialogues including in the economic and trade areas to discuss and resolve specific issues of concern”.
The readout, however, didn’t give details of the issues of concern, though people familiar with the matter said on condition of anonymity that China’s restrictions on exports of rare earth materials, in many of which it has a near monopoly, were raised by the Indian side at Thursday’s talks.
The people cited India’s long-standing concerns about lack of adequate access to Chinese markets and the soaring trade deficit with China, which touched $99.2 billion in the financial year 2024-25, as other areas of concern.
External affairs ministry spokesperson Randhir Jaiswal on Thursday said that the Indian side has been in touch with Chinese authorities after China’s commerce ministry and General Administration of Customs announced the export controls on certain rare earth items in April.
“We are in touch with the Chinese side, both in Delhi, as also in Beijing, to bring predictability in supply chains for trade consistent with international practices,” he said.
Misri and Sun reviewed developments in bilateral relations since their last meeting in Beijing on January 27, and agreed to “continue to stabilise and rebuild ties”, with priority on people-centric engagements, the readout said. Misri referred to a meeting of the expert-level mechanism on transborder rivers in April that discussed resuming the provision of hydrological data and other cooperation, and hoped for progress on these matters.
“The two sides agreed to expedite steps involved in resuming direct air services between the two countries,” the readout said. Misri hoped for the “early conclusion of an updated Air Services Agreement”, and the two sides agreed on practical steps for visa facilitation and exchanges between the media and think tanks.
A statement from the Chinese embassy described the discussions between Misri and Sun as “candid and in-depth” and said the two sides agreed to jointly prepare for holding the 24th meeting of the Special Representatives for the India-China boundary issue at an appropriate time. The two Special Representatives, National Security Adviser Doval and Chinese foreign minister Wang Yi, last met in Beijing in December 2024.
The two sides will also “push for the resumption of direct flights and exchange of resident journalists at an early date, facilitate people-to-people exchanges [and] resume bilateral dialogue mechanisms steadily”, the Chinese statement said.
Sun said concerted efforts by India and China had resulted in a “hard-won momentum of improvement and development” in bilateral relations. Both sides should handle bilateral ties from a long-term perspective, increase political mutual trust, advance cooperation in various areas, and “properly handle disagreements and differences”, he said.
Misri appreciated the Chinese side’s cooperation for resuming the Kailash Manasarovar Yatra this month. The pilgrimage to Mount Kailash and Mansarovar Lake in Tibet Autonomous Region had been suspended since 2020, initially because of the Covid-19 pandemic and then the protracted face-off along the LAC.
The two sides also discussed activities planned to commemorate the 75th anniversary of diplomatic relations between India and China and agreed to facilitate these events.
