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Border deal, direct flights to China and more… The big positives out of Wang Yi’s India visit
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  • Border deal, direct flights to China and more… The big positives out of Wang Yi’s India visit

Border deal, direct flights to China and more… The big positives out of Wang Yi’s India visit

FP Explainers • August 20, 2025, 09:47:50 IST
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India and China have made ‘steady progress’ in their ties, said PM Narendra Modi after meeting with China’s Foreign Minister Wang Yi. As the Chinese official ends his visit to the nation, there have been quite a few positives: Both countries have decided to work on the settlement of the boundary question. Also, Beijing has lifted curbs on exports of rare earths and fertilisers

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Border deal, direct flights to China and more… The big positives out of Wang Yi’s India visit
India's Prime Minister Narendra Modi meets with Chinese Foreign Minister Wang Yi in New Delhi, India. Press Information Bureau

It’s been a significant three days for India-China ties, and there seems to be a big breakthrough in resetting bilateral relations after a years-long standoff between the two Asian powers.

China’s Foreign Minister Wang Yi, who has been in India since August 18, is now making his departure after holding talks with Prime Minister Narendra Modi, National Security Advisor (NSA) Ajit Doval, and External Affairs Minister S Jaishankar.

In his discussions, Wang Yi noted that China and India should see each other as “partners and opportunities” and offer the world “much-needed certainty and stability, adding that both countries should “put each other’s precious resources into development and revitalisation”.

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“China and India should explore the right path of treating each other with mutual respect and trust, living in peace, pursuing development together and achieving win–win cooperation… and consolidate the momentum of improving China-India relations,” said the Chinese ministry’s readout.

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PM Modi also noted the importance of maintaining peace and tranquillity along the border with China and reiterated India’s commitment to a fair, reasonable and mutually acceptable resolution to the boundary question. He further added that he was looking forward to meeting Chinese President Xi Jinping on the margins of the upcoming summit of the Shanghai Cooperation Organisation (SCO), scheduled for August 31, in the Chinese city of Tianjin.

But what exactly is the outcome of Wang Yi’s visit? Would it be deemed a success? Here are some big takeaways from the Chinese minister’s India trip.

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India-China agree to explore ‘early harvest’ boundary deal

Ties between the two big giants had deteriorated in 2020 following the Galwan clash at the India-China border. In fact, the border has remained a sticking point between the two nations for many years.

However, now, there’s a huge breakthrough as India and China have agreed to set up two new groups to address the border issue , one to “explore early harvest in boundary delimitation” and the other to “maintain peace and tranquillity” in the border areas.

In talks between Wang Yi and NSA Ajit Doval, they agreed on five steps to push forward ties. The first is the “need to take a political perspective of the overall bilateral relationship” while “seeking a fair, reasonable and mutually acceptable framework” for settling boundary disputes in line with the 2005 Agreement on Political Parameters and Guiding Principles for Settlement of the India-China Boundary Question, India’s Ministry of External Affairs said in its latest statement.

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The two leaders also agreed on a new expert group and a new working group under the Working Mechanism for Consultation and Coordination on India-China Border Affairs, with the former looking into an “early harvest” in the delimitation of boundaries between the two nations, as the latter will “advance” effective border management.

The countries also agreed on the creation of General Level Mechanisms in the Eastern and Middle Sectors, in addition to the existing General Level Mechanism in the Western Sector, and said de-escalation would be discussed.

India’s agreement to exploring China’s ‘early harvest’ proposal is quite notable, as New Delhi had turned down this offer earlier, insisting that it would prefer a comprehensive settlement covering the entire India-China boundary.

The ‘early harvest’ was first floated in 2017 when Chinese Ambassador Luo Zhaohui cryptically mentioned it during a think tank event at New Delhi. Chinese military analyst senior Colonel Zhao Xiaozhou later clarified that the proposal essentially sought to replace the 1890 Great Britain-China convention with a new agreement signed directly between China and India. “For China, early harvest means, we want to have a new agreement with India, because the 1890 convention was signed between Great Britain and China,” he explained, adding that China wanted to “start from the easiest, that is what we call early harvest” in the Sikkim sector.

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NSA Ajit Doval and China’s Wang Yi sit down for border talks during the latter’s visit to India. Image Courtesy: @China_Amb_India/X

China to lift curbs on rare earths, fertiliser exports

Another move that indicates a huge shift in India-China ties is Beijing agreeing to lift curbs on the export of fertilisers, rare earth magnets/minerals , as well as tunnel boring machines to India. According to an Economic Times report, shipments have already begun.

Earlier, India had taken up the matter of restricting fertiliser supplies, noting that the action had impacted availability of Di-Ammonium Phosphate in the Rabi season. Similarly, Beijing had paused shipments of tunnel boring machines headed for key infrastructure projects in India.

Additionally, India’s automobile and electronics industries repeatedly flagged shortages of rare earth magnets, warning of production risks.

At the time, China had put curbs, linking it to national security considerations amid tensions with India.

Wang Yi’s assurances on this matter are significant; it comes at a time when both countries are facing challenges from the US on the trade and tariffs front.

India’s External Affairs Minister S Jaishankar with his Chinese counterpart Wang Yi in New Delhi. Image Courtesy: @MEAIndia/X

India-China to resume direct flights, boost business links

Following up Wang Yi’s visit, it was announced that India and China would resume direct flights , which have been suspended since the Covid-19 pandemic in 2020. However, no exact date has been given for the resumption of services.

Both sides also agreed on the facilitation of visas to tourists, businesses, media and other visitors in both directions. Both sides further approved the re-opening of border trade through the three designated trading points, namely Lipulekh Pass, Shipki La Pass and Nathu La Pass. Moreover, concrete measures would be taken by both sides to facilitate trade and investment flows between the two countries

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India and China have also expressed support to each other in holding events in 2025 to commemorate the 75th anniversary of the establishment of diplomatic relations between India and China.

India and China have also said that they would support each other in hosting successful diplomatic events – the Chinese side will support India in hosting the 2026 Brics summit and the Indian side will support China in hosting the 2027 Brics summit.

The Brahmaputra question and terrorism

India also raised concerns over China’s construction of a mega dam on the Yarlung Tsangpo river, which becomes the Brahmaputra in India.

India spoke of its worries on China’s construction in the lower reaches of the Yarlung Tsangpo (Brahmaputra river). It stressed that the activity will have implications for lower riparian states and called for “utmost transparency” on the matter.

It’s also important that India raised the issue of terrorism and its strong stand against cross-border terrorism with China’s Wang Yi. The MEA said in its statement, “The Indian side strongly raised the issue of terrorism in all its forms and manifestations, including cross-border terrorism, recalling that one of the original objectives of the SCO, whose summit will be held later this month in China, was to counter the evil of terrorism. Minister Wang Yi concurred that countering terrorism should be given the highest priority.”

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Despite China-India relations seeing a thaw in ties, which is only being fuelled by Washington and Donald Trump’s tariffs , some challenges remain. Beijing continues to extend support to Pakistan — in fact, Wang is heading to Islamabad immediately after his India visit.

With inputs from agencies

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