China, India agree to de-escalate tension on Ladakh border

MOSCOW: China and India said they had agreed to de-escalate renewed tensions on their contested Himalayan border and take steps to restore “peace and tranquillity” following a high-level diplomatic meeting in Moscow.

Chinese State Councillor Wang Yi and Indian Foreign Minister S Jaishankar met in Moscow on Thursday and reached a five-point consensus, including agreements the current border situation is not in their interests and that troops from both sides should quickly disengage and ease tensions, the two countries said in a joint statement.

The consensus, struck on the sidelines of a Shanghai Cooperation Organisation meeting, came after a clash in the border area in the western Himalayas earlier this week. Shares of defence-related firms fell in China early Friday after the news, with the CSI National Defense Industry Index down 1.2 per cent and on track for its steepest weekly decline since October 12, 2018. Tongyu heavy Industry shares tumbled as much as 16.4 percent.

China and India accused each other of firing into the air during the confrontation, a violation of long-held protocol not to use firearms on the sensitive frontier.

Wang told Jaishankar during the meeting the “imperative is to immediately stop provocations such as firing and other dangerous actions that violate the commitments made by the two sides,” China’s foreign ministry said in a statement on Friday.