China India agree in principle to resume Shipki-La trade route

Post by : Mumtaaz Qadiri

Photo:X/@Dr.SJaishankar

The possibility of reviving an ancient trade corridor across the Himalayas has drawn new attention after China signaled its agreement, in principle, to reopen the Shipki-La pass in Himachal Pradesh. The announcement, made following the visit of Chinese Foreign Minister Wang Yi to India on August 24, 2025, has been welcomed as a breakthrough for both diplomatic relations and local communities living along the border.

This move comes five years after trade through Shipki-La was suspended due to the COVID-19 pandemic in 2020. The reopening of the pass, located in Kinnaur district, is not just about commerce; it is about reviving centuries-old connections, supporting religious pilgrimages, and strengthening ties between two of Asia’s largest nations.

A Breakthrough After Years of Suspension

Shipki-La is one of the three officially recognized points of border trade between India and China, the other two being Nathu La in Sikkim and Lipulekh in Uttarakhand. While Lipulekh and Nathu La resumed some level of activity in recent years, Shipki-La has remained closed.

According to the Himachal Pradesh government, this diplomatic progress was possible due to the continuous push from Chief Minister Sukhvinder Singh Sukhu. The Chief Minister wrote directly to the Union government, requesting the reopening of the pass, emphasizing its importance not only for trade but also for cultural and religious purposes. Responding to this request, India’s External Affairs Minister S. Jaishankar raised the matter with Chinese officials, which ultimately led to Beijing agreeing in principle.

The Himachal government described the development as a “fruit of persistent efforts” and expressed optimism that trade and travel through Shipki-La could resume soon, once formal procedures are completed.

Historical Significance of Shipki-La

The Shipki-La pass sits at an elevation of nearly 16,000 feet and has been a vital link between India and Tibet for centuries. Long before formal treaties, traders, pilgrims, and travelers crossed this route carrying wool, salt, herbs, tea, and handicrafts.

Historically, it was considered an offshoot of the ancient Silk Route, which connected India with Central Asia and beyond. In 1994, India and China officially recognized Shipki-La as a designated trade point under a bilateral agreement, giving it a formal status in modern diplomacy.

The suspension of trade in 2020 was not only a result of the pandemic but also coincided with rising tensions along the Line of Actual Control (LAC). Its reopening, therefore, carries symbolic value, signaling that both sides are willing to take steps toward rebuilding trust.

What Will Reopening Mean for Local Communities?

For the people of Kinnaur district, the reopening of Shipki-La could be transformative. Border trade has historically supported local livelihoods, with traders exchanging goods such as apples, handicrafts, herbs, and traditional textiles for Tibetan wool, carpets, and other goods.

Kinnaur’s economy, heavily dependent on agriculture and horticulture, can benefit from new markets across the border. Local traders and transporters are hopeful that the revival of Shipki-La will create job opportunities, encourage tourism, and bring economic vibrancy back to the region.

On the Chinese side, the town of Gartok acts as a hub for goods coming in from India. The pass also links further to Darchen and Lake Mansarovar, strengthening its role as both a trade and pilgrimage route.

Kailash Mansarovar Yatra: A Spiritual Dimension

The reopening of Shipki-La is not just about trade. It also opens the possibility of resuming the Kailash Mansarovar Yatra through Himachal Pradesh. The pilgrimage to Mount Kailash and Lake Mansarovar in Tibet is deeply sacred to Hindus, Buddhists, Jains, and followers of Bon religion.

At present, the yatra is conducted through two routes: Lipulekh in Uttarakhand and Nathu La in Sikkim. Both routes have their own challenges. The Himachal Pradesh government has argued that the Shipki-La route is comparatively shorter and less arduous on the Tibetan side.

The state already has road connectivity up to the pass via Rampur Bushahr and Pooh, which makes it feasible to set up base camps and facilities for pilgrims. By adding Shipki-La as an additional route, more devotees will have access to the sacred journey, reducing pressure on the other two routes.

The government has expressed confidence that once approved, Shipki-La could become a major entry point for religious tourism, benefiting both pilgrims and local communities.

Diplomatic Significance

In recent years, India-China relations have been marked by mistrust, especially after the border clashes in Ladakh in 2020. Both nations have maintained a cautious approach while continuing diplomatic dialogues.

The willingness of China to agree, even in principle, to reopen Shipki-La shows a subtle but important shift. It reflects an understanding that trade and cultural exchanges can serve as bridges during times of political tension. For India, this also demonstrates the effectiveness of combining state-level initiatives with national diplomatic efforts.

The development is being seen as part of broader discussions between India and China to normalize border trade across all three recognized passes. While many challenges remain, including security concerns and geopolitical sensitivities, the reopening of Shipki-La could act as a confidence-building measure.

Next Steps: Formalities and Infrastructure

The Himachal Pradesh government has stated that it will now coordinate with the Union Commerce Ministry to complete codal formalities. These include customs arrangements, security checks, and development of necessary infrastructure at the border.

Officials have also stressed the need for improved facilities for traders and pilgrims, such as warehouses, lodging, and medical aid centers. The success of reopening Shipki-La will depend heavily on how efficiently these systems are put in place.

Additionally, discussions are ongoing about ensuring smooth cooperation between border forces of both countries to avoid disruptions.

Economic and Cultural Potential

The reopening of Shipki-La is expected to have wide-reaching impacts:

Trade Boost: Local agricultural products, herbs, and handicrafts could find a direct market in Tibet, while Tibetan wool, carpets, and salt could flow into Indian markets.

Tourism Growth: With Shipki-La added as a route for the Kailash Mansarovar Yatra, Himachal Pradesh could see a significant rise in religious tourism.

Cultural Revival: Restoring the pass would revive centuries-old cultural and spiritual links between India and Tibet.

Strategic Advantage: Improved connectivity in border areas strengthens India’s presence in sensitive regions, balancing security with economic cooperation.

The agreement by China to reopen the Shipki-La pass in Himachal Pradesh marks a historic moment in Indo-China relations. What began as a state-level initiative by Himachal Pradesh has now turned into a diplomatic achievement involving the central government and Beijing.

For the people of Himachal Pradesh, this is more than just a reopening of a trade route — it is a chance to revive their historical connections, strengthen their economy, and welcome pilgrims once again to their land. For India and China, it represents a cautious step toward cooperation after years of strained relations.

If successfully implemented, Shipki-La could soon regain its place as a vibrant gateway of trade, faith, and friendship across the Himalayas.

India-China trade