NEW DELHI (Reuters) -India and China agreed on Tuesday to resume direct flights and step up trade and investment flows as the neighbours rebuild ties damaged by a 2020 border clash. The Asian giants are cautiously strengthening ties against the backdrop of U.

Indian Prime Minister Narendra Modi has met China's top diplomat and hailed the “steady progress” made in improving the countries' relationship after a yearslong standoff between the nuclear-armed powers.

Border trade between India and China through Lipulekh Pass had commenced in 1954 and had been going on for decades till it was disrupted by.

Nepal's foreign ministry asserts Lipulekh as part of its territory, responding to India-China border trade resumption. Key territorial claims discussed.

India's position is that the Kalapani region, including Lipulekh and Limpiyadhura, is part of its territory. This claim is based on India's interpretation of the Sugauli Treaty of 1816, which defined the border with Nepal based on the Kali River.

The long-frozen air corridor between India and China is opening again after more than five years of closed skies.

There is an upward trend in India-China relations and Beijing has promised to address New Delhi's needs on rare earths, a top Indian official and a source said on Tuesday, as the neighbours rebuild ties that were damaged by a 2020 border clash.

India on Wednesday rejected Nepal's opposition to the resumption of border trade with China through the Lipulekh Pass, calling Kathmandu's territorial claims "unjustified, untenable, and not supported by historical facts.

The measures were outlined in a joint document following Doval's discussions with Wang under the Special Representatives' dialogue framework..India China relations, India China border dispute, India China trade,

India and China have agreed to enhance border dispute resolution efforts following talks between NSA Ajit Doval and Chinese Foreign Minister Wang Yi.