The opening of the route comes a little over a year after the meeting of India's Prime Minister Dr. Manmohan Singh with his counterpart Wen Jiabao in New Delhi in April 2005.

Nathu La, a part of the famed Silk Route and located 4,400 metres (14,520 feet) above sea level, has again been opened to promote border trade between the two countries and observers believe that bilateral trade which has stood up to $18.73 billion in 2005 will get a boost. India and China have pushed for greater trade to tap a total consumer market of 2.3 billion people.

Trade between the two countries currently relies mostly on sea transport and is largely seen as very modest, compared to flows with their other trade partners. The re-opening of this route will help end economic isolation in this area.

The opening of the Silk Route coincides with the July 1 start of the first train line between Lhasa (Tibet) and eastern region of China. Tibet is no more a mystery land and the train line consolidates the Beijing's hold on Tibet. The train line is a marvelous feat of engineering in modern days and could attract foreign visitors in great numbers.

Economic benefits
As per the arrangement, trading will initially be confined to the border regions, with only Sikkim-based traders and 44 commodities having been allowed in the bilateral trade. Out of 44, 29 commodities were listed for export and 15 for import.

The items included in the bilateral trade are goatskin, sheepskin, wool, raw silk, china clay, borax, salt, some domestic animals, agricultural implements, agro-chemicals, processed food, clothes, spices, tobacco, and vegetables.

It is reported on July 7 that merchants were presented on each side with silk scarves symbolizing respect and were greeted with music and folk dancing after crossing the border through a stone-walled passageway that has replaced the barbed wire that had kept them apart since 1962.

Officials say that about hundred traders from each country crossed the Nathu La pass, on the border between India's Sikkim state and China's Tibet region to markets on the other side and returned in the evening.

All traders had first-hand knowledge of trade facilities at Renquinggang, the trade station on the Chinese side. They were reportedly been issued trade passes and given a crash course on import-export modalities and regulations.

The re-opening of the old Silk Route promises to boost the economies of the land-locked mountainous regions of the two countries. According to a study conducted by Sikkim's Nathu La Trade Study Group, the trade volume through the Himalayas pass is expected to be worth Rs.4.5 billion in 2015 and Rs.5.74 billion in 2020.

Political ramifications
China has always expressed reservation on the annexation of Sikkim by India in the late 70s, and never recognized it a part of India. At the same time, India never recognized Tibet as part of China and gave refuge to the former temporal and spiritual leader the Dalai Lama in India. The historic summit that took place in April 2005 in New Delhi between the two prime ministers, resolved the issue for broader strategic considerations. China recognized Sikkim as part of India while India considered Tibet an integral part of China.

The opening of the Silk Route from Tibet to Sikkim demonstrates the acceptance of India's sovereignty over Sikkim and China's over Tibet. This is one of the important political milestones in bilateral relationship between the two Asia's giants.

Furthermore, observers believe that the recognition of Sikkim and Tibet by each other may lead to resolution of border dispute between the two countries, a legacy of the 1962 war. India considers Chinese occupation of Ladakh as illegal, and India's occupation of some parts of Arunachal Pradesh is considered as unlawful by China.

The increasing relationship between the China and India may not be comfortable to Pakistan. Democratic or dictatorial, China always features large in Pakistan's policy-decisions towards India. Pakistan had hoped for a permanent breach between China and India and now Pakistan finds that Chinese self-interest has compelled it to narrow differences and repair some of the damage with India caused by the 1962 border war.

Another fact is that since 1949, China has seen Pakistan as the small and vulnerable neighbour, forced to defend itself against a much bigger regional power with greater aspirations. Ex-US National Security Advisor Zbigniew Brzezinski held that only China restrained India's ambition to "subordinate" Pakistan. That perception does not remain anymore with China against India in the background of current security and economic circumstances.

The re-opening of the Silk Route is a significant edifice of confidence and cooperation between the two countries. Both countries have demonstrated that they are not impervious to getting involved in either economic opportunity or strategic alternative and that they are keeping their options open.

Economic analysts believe that the opening of the ancient Silk Route between the two countries may have an impact on countries in South Asia. Some of them even assert that the economic integration of Bangladesh's economy with that of northeastern states of India is appropriate and timely against the background of rapidly expansion of trade between India and China.

Barrister Harun ur Rashid is a former Bangladesh Ambassador to the UN, Geneva.