Indian and Chinese troops suffered minor injuries in a clash in the Tawang sector of India's Arunachal Pradesh state on December 9, the first such incident since the deadly clash between the two neighbours in June 2020.
Here is a look at the relations between the two Asian giants since the 2020 clashes, which killed 20 Indian soldiers and four on the Chinese side.
DIPLOMACY
* India's foreign minister told parliament last week, before the latest clashes on Friday, that relations with China cannot go back to normal without peace on the border.
* Indian and Chinese militaries have held many rounds of conversations since the 2020 clashes to defuse tension, without much success.
* India's foreign ministry said in September that Indian and Chinese soldiers would disengage from the Gogra-Hot Springs area in Ladakh in the western Himalayas. The pull-out was confirmed by China.
* Prime Minister Narendra Modi and Chinese President Xi Jinping exchanged courtesies at the end of a G20 dinner in Indonesia last month. However, the two leaders have not held not held any bilateral meetings since the 2020 clashes.
TRADE
* The trade deficit between the two countries has ballooned, with government data showing a multiyear high figure of $73.31 billion for 2021-22.
India imports a host of goods and raw materials from its eastern neighbour, including hardware for upgrading its telecommunications sector and raw materials for its pharma industry.
India's imports from China surged to $94.57 billion during 2021-22, and data shows $60.27 billion worth of goods have been imported so far this year.
BUSINESS
* Many Chinese companies have struggled to do business in India, especially after India tightened investment norms and banned more than 300 Chinese apps since 2020, including popular ones such as TikTok.
Chinese smartphone maker Xiaomi Corp was the latest to shut down its financial services business in India, four years after its launch.
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