This Tibetan landscape covers the border between China and India. (Photo : Getty Images)
Indian and Chinese trade relations remain cold despite the reopening of The Nathula Pass in 2006.
This pass, which was once part of the Silk Road, was reopened to mark China's willingness to start trade relations with its Asian neighbors. However, trade relations remain dismal.
The total of trade between China and bordering India is only over $1 billion.
Roads that link Tibet and India are unfit for trade due to potholes and snow. Only light products, such as tea and canned food can be transported.
Lack of infrastructure is also the cause for difficulties in trade. There are not enough warehouses and the ports are surrounded by bad roads.
According to Bloomberg, trade between India and China has fallen behind dramatically. The total trade even failed to match the peak at $79 billion in 2011.
Total trade between China and the US has already reached $621 billion.
"Both sides are yet to tap their trade potential," said Ravi Shekhar Vishal, an assistant professor at Sikkim University who co-authored a research paper on Nathula trade. "That's primarily because the trust between them is fragile and superficial."
Difficulties and lack of trust between the two nations are aggravated by protectionist measures imposed by India. Leaders have repeatedly imposed trade embargos against China, and has been pointed out by President Xi Jinping.
Despite the efforts pushed by both nations, Chinese analysts feel that there is not much to do.
"It's just not convenient to do business between the two nations," said Huo Jianguo, senior researcher at the Chinese Academy of International Trade and Economic Cooperation. "There's a lack of trust between the two peoples."
