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After Six Winters of Silence, the Himalayas Are Trading Again

Nathu La, Shipki La and Lipulekh reopened for India-China border commerce on August 1, ending a six-year freeze caused by COVID, Galwan and years of frozen diplomacy

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By Abhinav Singh
Published Aug 2, 2026, 11:18:27 AM | Updated Aug 2, 2026, 11:18:27 AM
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After a six-year suspension, India and China have officially reopened trade through the Nathu La, Shipki La, and Lipulekh border passes, marking a significant step toward restoring cross-border commer
After a six-year suspension, India and China have officially reopened trade through the Nathu La, Shipki La, and Lipulekh border passes, marking a significant step toward restoring cross-border commer
@Press Information Bureau

7:30 am, Saturday. A gate creaks open at 14,140 feet. On the strip of land locals still call No Man's Land, officials from the Tibet Autonomous Region are already waiting, and Indian counterparts walk over to meet them. No ribbon, no band, nothing you'd call a ceremony really. Just a handful of traders, some yak-wool sacks, and six years' worth of paperwork finally catching up.

That's Nathu La, 54 kilometres from Gangtok. And it wasn't the only pass that came back to life that morning. Shipki La in Himachal's Kinnaur district and Lipulekh in Uttarakhand reopened the same day, so for the first time since 2019, all three of India's historic trading gates with China are open at once.

Older than the countries trading through it

People forget this route predates both nations involved. Wool, salt, silk, spices, all of it moved through Nathu La for centuries as part of what historians lump together as the Silk Route. Then 1962 happened, the war with China, and the gate shut for over forty years. It only came back in 2006, formalised under a 2003 memorandum that had already named Nathu La, Lipulekh and Shipki La as the three official points.

For fourteen years after that it limped along. Traders griped constantly about the goods list being outdated, the paperwork being slow, but it worked, more or less. Then 2019 brought Doklam-adjacent tension. Then COVID hit in 2020. Then Galwan. Any one of those might have been survivable on its own. All three together kept the gate shut for six full years.

So what are people actually trading?

Honestly, not much has changed on paper since the 2000s, and that's part of the story. Indian traders carry out rice, flour, tea, jaggery, sugar, biscuits, carpets, tobacco, copper goods. What comes back is wool, pashmina, yak tails and yak hair, raw silk, borax, salt, butter. Somewhere around 36 notified categories total, and several traders are already lobbying to get that list updated, arguing it hasn't kept pace with what either side actually wants to buy.

Shipki La's opening had a distinctly old-world feel to it. Himachal's Revenue Minister Jagat Singh Negi flagged off the first batch, just 16 traders from the villages of Namgya, Dubling and Leo, draping them in ceremonial khata scarves before they rode out on horseback toward Tibet. This crossing still runs on barter. Traders get 72 hours across the border before they have to be back. Negi also cut the ribbon on a new trade mart at Shipki village, built at a cost of Rs 1.70 crore, mainly so people don't have to travel deep into Tibet anymore just to close a deal.

Sikkim alone has roughly 600 registered traders who've been sitting on their hands for half a decade waiting for this.

The politics underneath the paperwork

None of this is really about the yak tails. Trace it back and you land on the 24th round of the India-China Special Representatives' dialogue, held in August 2025, with NSA Ajit Doval and Chinese Foreign Minister Wang Yi co-chairing during his Delhi visit. That same round of talks also cleared the Kailash Mansarovar Yatra to restart, which it did earlier this year through Lipulekh and Nathu La, with Shipki La now added as a third pilgrimage route.

So really, this reads less like a trade decision and more like a signal. A cheap one, too, in the sense that it costs either government very little and can be reversed just as easily.

Which brings up the obvious question: how much is this actually worth? In 2019, the last full year before everything shut down, all three passes combined moved about Rs 49 crore. Against India-China's overall bilateral trade, which sits in the tens of billions of dollars, that number rounds down to nothing. Nobody in Beijing or Delhi is reopening Nathu La to fix a trade deficit.

What it does matter for is the people who live along it. Porters. Transport operators. Small hoteliers in Kinnaur, Pithoragarh, and the Sikkimese border villages who built their whole year around these few trading weeks before the snow closes everything again come November.

Anil Gupta, a trader from Gangtok, said it plainly enough after the gate opened: bills had sat unpaid on both sides for years, and this at least brings back some hope. IK Rasaily, another Gangtok trader, put it shorter still. He just wants it to last this time.