India, China agree to hold trade dialogue, resume sharing of river data

India and China are working to resume sharing of hydrological data of trans-boundary rivers and have separately agreed to hold ‘functional dialogue’ in economic and trade areas to discuss and resolve specific issues of concern.

The matters were discussed during a meeting of Foreign Secretary Vikram Misri and Vice Foreign Minister of China Sun Weidong. The Chinese official is on a two-day visit (June 12-13) to India.

The Ministry of External Affairs said, “The two sides agreed to hold certain functional dialogues including in economic and trade areas to discuss and resolve specific issues of concern.”

Sources said one of the issues was China having held back global supplies of rare earths needed for, among other things, electronics and automobiles. China is also keen to invest more in India. In April 2020 – when the two sides were locked in a military stand-off   in Eastern Ladakh – India’s Ministry of Commerce restricted direct and indirect FDI from entities based in countries that “share a land border” with India. It did not name China but it was obvious.

New Delhi is in advanced stages of talks on free trade agreement with the US and the European Union. India and the UK have completed their negotiations on a free trade agreement.

The other contentious issue between the two countries is sharing of data of trans-boundary rivers.  China stopped sharing data of the river flows of the Brahmaputra and Satluj, both of which originate in Tibet. The agreement between India and China on sharing hydrological data for the Brahmaputra expired on June 5, 2023. A similar agreement for the Sutlej lapsed on November 6, 2020. Hydrological data of the two rivers helps Indian agencies prepare for floods and plan infrastructure like dams and bridges.

The MEA said Foreign Secretary Misri noted a discussion in April 2025 at a meeting of the expert-level mechanism for cooperation in trans-border rivers for resumption of provision of hydrological data and other cooperation, and hoped for progress on them.

Also, at the meeting, the two sides agreed on expediting steps involved in the resumption of direct air services between the two countries. The Foreign Secretary hoped for the early conclusion of an updated Air Services Agreement. The two sides further agreed to take practical steps for visa facilitation and exchanges between media and think-tanks.

India-China bilateral relations were also reviewed since their last meeting in Beijing on January 27 this year and agreed to continue to stabilise and rebuild ties with priority on people-centric engagements.

The Foreign Secretary appreciated the Chinese side’s cooperation for the resumption of Kailash Manasarovar Yatra this year. The first batch of Indian pilgrims to Kailash Mansarovar in Tibet departs today.