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.

Both nations agree on visa facilitation, updated air agreements, and closer cultural and economic cooperation while managing border issues.

The two sides agreed to create an expert group under the WMCC on border affairs to explore “early harvest in boundary delimitation”.

New Delhi’s frayed ties with Washington have added to a thaw in the frosty relationship with Beijing that began last year.

Indian Prime Minister Narendra Modi’s top aide said ties with Beijing are on an “upward trend,” another signal that New Delhi may be recalibrating its foreign policy amid mounting tariff pressure from US President Donald Trump.

India and China are aware of the “very high political, economic and military cost of frozen relations,” he says. “China felt it had pushed India too close to the U.S. while India realized that it was losing its vaunted strategic autonomy by getting too close to Washington and turning Beijing into an adversary.”

Earlier this year, CEO Tim Cook said that Apple would be moving nearly all of its iPhone assembly to India to avoid tariff penalties. However, China will still be the top producer

Apple is shifting more iPhone production to India ahead of next month’s iPhone 17 launch, Bloomberg reports. The company will build all four iPhone 17 models there, and for the first time US-bound shipments for the entire lineup will come from India at launch.

The U.K. is acceding to U.S. government request to drop its demand for Apple to provide a so-called “back door” into the iPhone, as the company reportedly is expanding its production of the mobile phone in India.