India-China Trade: Trade between India and China through the Indo-Tibet border in Himachal Pradesh is all set to resume after a six-year pause. The Ministry of External Affairs has granted approval for the same, prompting the Kinnaur district administration to begin preparations ahead of the 2026 trade session at Shipki La Pass.
All departments and stakeholders have been consulted through review meetings. Before starting trade in June 2026, a thorough assessment of logistics was conducted.
Discussions in the meetings focussed on crucial aspects such as road connectivity in the Shipki La-Namgia area, security arrangements, customs procedures, medical and emergency services and registration of traders.
The India-Tibet Border Police (ITBP) will jointly monitor security arrangements along with the local police. The trade had stopped due to COVID-19 and is now being restarted after six years.
The administration clarified that trader registration will be handled by the Pooh Tehsildar, and only approved traders will be allowed to conduct business.
For registration, traders will need to provide identity proof, residence certificate, previous trade records (if available) and passport-sized photographs. Only items notified by the Government of India will be eligible for import and export. The customs department will deploy the necessary staff at Shipki La to facilitate operations.
Could Trump Tariffs Have Played A Role?
It is worth mentioning that trade tensions between India and the United States, particularly the 50% tariffs imposed by the Trump administration, have created challenges. Observers suggest that these tensions may have encouraged closer India-China engagement, possibly influencing the decision to approve trade via Shipki La Pass.
However, this has not been officially confirmed.
Shipki La Recently Opened For Tourists
Earlier, Shipki La Pass in Kinnaur was opened for tourists on June 10, 2025, for the first time in 78 years. The pass faces the Tibetan region, which is presently under Chinese administration. The Indian Army maintains a deployment at the pass, and tourists can now visit with permission, although overnight stays are not allowed.
Shipki La also serves as a route for the Mansarovar Yatra, which requires additional approval from the Chinese side for access.
With these preparations underway, the resumption of trade through Shipki La is expected to give a fresh boost to India-China economic interaction while ensuring security and proper regulatory oversight at the border.
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