In late October, Indian budget airline IndiGo operated the first direct passenger flight in five years between India and China, marking the resumption of commercial air links that were suspended in 2020 amid border tensions and the COVID pandemic.

The flight from Kolkata to Guangzhou carried over 170 passengers. China Eastern Airlines also announced it would resume flights between Shanghai and Delhi later this week.

The resumption of air traffic is only one of several positive moves recently reported between India and China.

In July, India resumed issuing tourist visas to Chinese nationals after a 5-year freeze. In August, China lifted curbs on the sale of fertilizers, rare earth magnets, and tunnel boring machines following talks between Indian External Affairs Minister S Jaishankar and Chinese Foreign Minister Wang Yi. It is worth noting, however, that Beijing suspended specialty fertilizer exports to global markets in October.

Four companies, including DE Diamond, Continental India, Jay Ushin and Hitachi's Indian subsidiary, secured conditional permits to import rare earth magnets from China, marking the first such clearances since Beijing imposed stringent export controls in April.

China also reopened the Kailash Mansarovar pilgrimage, which is sacred for Hindus and takes place in Tibet. In June, China began issuing Tibet entry permits and special category visas for Indian pilgrims.

India and China take it step by step

The diplomatic thaw between India and China comes after a series of high-profile engagements. Indian Prime Minister Narendra Modi and Chinese President Xi Jinping set the ball rolling on the sidelines of the BRICS Summit in October 2024, where they agreed on calming border tensions and committed to stabilizing bilateral relations. 

In August, momentum continued at the Shanghai Cooperation Organisation (SCO) summit in China's Tianjin. At the summit, both leaders reaffirmed their commitment to peace, deeper cooperation, and regional stability. It was Modi's first visit to China in seven years.

Alka Acharya, honorary director of the Institute of Chinese Studies in New Delhi, said the developments are a welcome step toward better ties but should not be blown out of proportion. 

"Ties are certainly on the mend and we have witnessed a remarkable slew of measures in quick succession," Acharya told DW.

However, she added, "Once a modicum of normal interaction is restored, there will be an inevitable slowdown."

"Further developments rest on the dialogues that are needed at the highest levels, which would indicate the extent of convergences that have developed since the suffocation of global trade and the slapping of punishingtariffs by US President Donald Trump," she added.

Border problem unresolved

A territorial dispute in the Himalayas is at the core of China-India tensions. Both countries have accused the other of trying to seize territory along their de facto border, known as the Line of Actual Control (LAC).

In May 2020, tensions erupted into violence in the Galwan River Valley near the LAC. Four Chinese troops and 20 Indian soldiers were killed in a brawl during which no shots were fired. The incident soured ties for years.

But in recent months, there has been a clear trend of de-escalation and sustained efforts to maintain peace and stability along the LAC. In October, India and China held commander-level military talks at the Chushul-Moldo border meeting point. 

Gautam Bambawale, a former Indian ambassador to China, said these steps indicate progress, but do not address the core issue of competing territorial claims.

"India has always insisted that peace on the borders is critical to the rest of the relationship moving forward. A lot will depend how the border situation develops," Bambawale told DW.

Shanthie Mariet D'Souza, executive director of Mantraya, an independent research forum, pointed out that Beijing has moved too slowly on the de-escalation and de-induction of troops at the standoff points along the LAC.

"The confidence building measures are important, but need to be accompanied by real progress on the boundary issue, which is the most critical trust building factor in bilateral relations," she told DW.

Diplomatic thaw 'tactical and not strategic'

Analysts speaking with DW said it remains to be seen whether improved economic cooperation eventually enables meaningful progress on border demarcation.

Ashok Kantha, another former Indian ambassador to China, said it would be incorrect to label the current progress between India and China as either rapprochement or detente.

"It is a cautious, step-by-step, incremental approach given the immense damage to the relationship over the years. Work must be done to resolve underlying issues such as the contentious border," Kantha told DW.

Analyst Bambawale said the thaw in ties is "tactical and not strategic."

"Beijing knows this. So does New Delhi. For example, India is never going to permit Chinese firms like Huawei and ZTE into India's telecom space again," Bambawale said.

D'Souza said another sore spot moving forward is China's unwavering support for Pakistan and the strategic risk of Beijing developing ties with India's neighbors.

"The situation is still evolving as there is considerable fluidity in the international system," D'Souza said, adding that while the improvement in ties is real, it "remains fragile as distrust of the Chinese remains high in India," D'Souza said.

Aravind Yelery, associate professor at the Centre for East Asian Studies at Delhi's Jawaharlal Nehru University, told DW that the re-engagements are being "approached cautiously and gradually by each side."

"For China, these milestones signify more than just bilateral optics. The Chinese views on the resumption of talks and dialogues underscore an aspirational tone, aiming to eliminate any anti-Chinese narratives surrounding them," he said.

"There is a common understanding between the two sides to maintain the momentum for some time before opening new fronts for engagement and de-escalation," Yelery added.

Edited by: Wesley Rahn