Diplomatic sources said Thursday that China and India are holding preliminary talks to resume trade across their shared border, five years after it was suspended due to military tensions in the Ladakh region.

The move is part of broader efforts by both nations to ease tensions and rebuild trust, with the expected agreement likely to focus on the exchange of essential goods and local products benefiting border communities.

Border trade between Beijing and New Delhi was halted in 2020 following deadly clashes in the Galwan Valley that left casualties on both sides.