India and China will resume border trade through the Lipulekh Pass from June 2026, six years after the route was suspended, marking a cautious thaw in bilateral ties that were strained by the COVID-19 pandemic and the 2020 military standoff in eastern Ladakh. The decision comes alongside plans to reopen other Himalayan passes, including Shipki La and Nathu La.

The reopening was agreed during high-level talks in August 2025 between India’s National Security Adviser Ajit Doval and Chinese Foreign Minister Wang Yi. The trading season is expected to run from June to September, subject to weather conditions. For the first time, traders will have access to a motorable road connecting Dharchula to Lipulekh, completed in 2020, which replaces traditional mule routes and reduces travel time and costs.

Local authorities have designated Gunji as the main trade mart, with Dharchula serving as the administrative base. Facilities for banking, customs, and security are being set up to facilitate operations. Trade is largely carried out by local communities, including the Bhotiyas, who export handicrafts and agricultural products while importing items such as Tibetan wool.

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Situated at over 5,300 metres in Uttarakhand’s Pithoragarh district, Lipulekh is a strategic pass linking India with China’s Tibet Autonomous Region. It also serves as a key route for the Kailash Mansarovar Yatra, making it significant both economically and culturally. Trade through the pass dates back to 1954, was halted following the 1962 war, resumed in 1992 under a bilateral agreement, and was suspended again in 2020 due to pandemic restrictions and border tensions.

The reopening has drawn objections from Nepal, which claims the Lipulekh-Kalapani-Limpiyadhura region under the 1816 Treaty of Sugauli. The dispute centers on differing interpretations of the Kali river, which defines the boundary. In 2020, Nepal updated its official map to include the disputed area, a move India rejected as an “unjustified cartographic assertion.” India maintains administrative control and has proceeded with infrastructure development and trade plans, while emphasizing that boundary issues will be resolved through dialogue.

Officials say the reopening is expected to revive traditional trade and economic activity in the region, while signalling a limited normalisation of India-China relations. Analysts note that although commerce will resume, underlying geopolitical tensions between the two countries remain unresolved.

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