The formal disengagement process in eastern Ladakh began on Monday morning.
China's People's Liberation Army (PLA) on Thursday completed moving back its troops from the face-off sites in Gogra and Hot Springs in eastern Ladakh in line with the understanding reached with the Indian Army, and the two sides are set to hold high-level military talks to further de-escalate tension in the region, people familiar with the development said.
They said both sides have completed creation of a buffer zone of three kilometres in the three friction points of Galwan Valley, Gogra and Hot Springs as part of a temporary measure aimed at reducing the possibility of any confrontation.
On Thursday, the PLA has totally pulled back its troops from Gogra (patrolling point 17), and with this, both sides have implemented the first phase of disengagement to avoid any friction, sources said.
They said the entire focus now shifts to Pangong Tso area where there has been thinning out of troops from Finger area 4. India has been insisting that China must withdraw its forces from areas between Finger 4 and 8.
The two armies will also carry out a joint verification in the next few days to assess the implementation of the disengagement process.
The formal disengagement process began on Monday morning after a nearly two-hour telephonic conversation between National Security Advisor Ajit Doval and Chinese Foreign Minister Wang Yi on Sunday.
Mr Doval and Mr Wang, who are Special Representatives for the boundary talks, are due to hold another round of talks on Friday.
Military sources said Indian army will continue to maintain its aggressive posturing along the Line of Actual Control till the Chinese side cuts down on its significant build up in its rear bases.
Both sides have brought in thousands of additional troops and weaponry including tanks and artillery guns to their rear bases as part of a mega build up following the face-off that began on May 5.
As per the decisions arrived at corps commander-level talks on June 30, the two sides would create a minimum buffer zone of three kilometre in most of the areas where they were locked in a standoff.
The Indian and Chinese armies are locked in the bitter standoff in multiple locations in eastern Ladakh for the last eight weeks. The tension escalated manifold after the Galwan Valley clash in which 20 Indian Army personnel were killed.
Both sides have held several rounds of diplomatic and military talks in the last few weeks to ease tension in the region. However, there was no visible sign of any end to the standoff till Sunday evening.
(With inputs from PTI)