India and China have agreed to step up trade flows and resume direct flights in a major diplomatic breakthrough, as the two most populous nations try to rebuild ties damaged by a 2020 deadly border clash and amid US President Donald Trump’s unpredictable foreign policy.

The two rivals also agreed to advance talks on their disputed border during Chinese Foreign Minister Wang Yi’s two-day visit to India.

The rebuilding of India-China ties coincides with friction between New Delhi and Washington, following the recent imposition of steep tariffs on India by the Trump administration.

So why did India and China decide to mend their ties, and what steps were taken to address their border dispute?

Discussions covered a range of issues related to withdrawing tens of thousands of troops that both countries have amassed along their Himalayan border, boosting investment and trade flows, hosting more bilateral events, and enhancing travel access.

The Asian neighbours agreed to reopen several trading routes – namely the Lipulekh Pass, Shipki La Pass and Nathu La Pass. An expert group will also be established to explore “early harvest” steps (i.e. mini-agreements that can be implemented quickly before the conclusion of a more complex deal) to improve border management, a move India had previously opposed.

In the past, India was keen to avoid a situation where China secured partial gains up front, but where its territorial integrity concerns remained unresolved. India’s opposition has accused the government of ceding territory to China.