China and India restarted border trade Thursday through Tibet's Nathu La Pass, a historic trading route that has been closed for 44 years.

"The reopening of the Nathu La Pass is a significant move to enhance Sino-Indian friendship and promote good neighborly ties," said Qiangba Puncog, chairman of Tibet's regional government, at a grand inaugural ceremony held at the border pass late Thursday morning.

"It's a major event for the two countries to expand and deepen trade and economic cooperation and exchanges," he told an audience of about 400 officials and businesspeople from both sides. "It marks Sino-Indian trade and economic cooperation has entered a new phase."

Nathu La Pass was a major trading point between the two countries before it was closed in 1962 following a border conflict. It sits 4,545 meters above sea level is wedged between Yadong County of Tibet's Xigaze Prefecture and India's Sikkim State.

Sikkim's chief minister Pawan Kumar Chamling was also present at the ceremony and cut a red ribbon to reopen the border pass with Qiangba Puncog.

"This is a historical day for both countries," said Chamling. "It will lead to economic development and social prosperity of the people."

"We're looking forward to developing the trade and beginning tourism, he said, adding that the Indians hope border trade will be expanded to include more items and will facilitate free trade.

After the ceremony, people from the two countries crossed the border cheerfully and entered each other's territories. The Chinese presented hadas, a white silk scarf symbolizing respect and blessing, to the Indians.

Gone is the barbed wire that separated the world's most populous nations for the past 44 years and in its place is now a 10-meter wide, stone walled passageway waiting for merchants from both sides to go through.

A red banner on the Chinese side of the borderline reads "Warmest congratulations to the reopening of Sino-Indian Nathu La Pass border trade route" and a yellow one on the Indian side reads "Welcome to Nathu La".

At 10:00 am Thursday, the two countries raised their national flags and played national anthems on the two sides of their borderline at Nathu La Pass.

The two countries have also opened on Thursday two border trade markets -- the Renqinggang market in Yadong County of Tibet's Xigaze Prefecture and Changgu mart in India's state of Sikkim.

Chinese and Indian officials agreed last month that Thursday is the date to reopen border trade through Nathu La Pass, one of the main arteries of the Silk Road that historically linked China via central Asia to Europe.

"The reopening of border trade will help end economic isolation in this area and play a key role in boosting market economy there, " said Hao Peng, vice chairman of Tibet Autonomous Region.

The move is also conducive to improving relations between the two countries, said Dr. Christy Fernandez, additional secretary of the Indian Department of Commerce.

With the reopening of the historic trade route and Saturday's launching of the Qinghai-Tibet Railway, experts say the two countries will be able to revive the ancient Silk Road by shipping goods from China's inland areas to India and other parts of South Asia via Tibet.

(Xinhua News Agency July 6, 2006)