The world's two most populous countries used to be close neighbors. Both played an active role in leading the developing world. Together they initiated and promoted the Five Principles of Peaceful Coexistence, a hallmark in international relations.

But relations suffered. Bilateral ties nose-dived in the 1960's. In 1962 the two sides fought a brief war over still unresolved border disputes.

Ma Jiali, researcher with China Institute of Contemporary International Relations, said, "Sino-Indian relations began to warm up and improve in the late 1980's when then Indian Prime Minister Rajiv Gandhi visited China. But they suffered a setback in 1998 when India conducted a series of nuclear tests. A two-year ebb in bilateral ties followed."

Both sides have since worked to mend relations. In 2000 a week-long visit to China by Indian President K. R. Narayanan led to an increase in high-level exchanges.

In 2002, Zhu Rongji became the first Chinese Premier to visit New Delhi in a decade.

Jaswant Singh, Indian foreign minister, said, "I reaffirmed India's commitment to further deepening and broadening the relationship as the two largest neighbors, as the two ancient civilizations and two great peoples comprising one third of the humanity."

Military exchanges also gained tempo. In April this year, the Chairman of China's Central Military Commission Jiang Zemin met with Indian Defense Minister George Fernandes in Shanghai.

The two sides reiterate that they do not view each other as enemies. But despite diplomatic cordiality, relations can still be strained.

Sun Shihai, professor with Chinese Academy of Social Sciences, said, "Apart from border issues, historical problems and other issues, what the relationship between India and China lacks is mutual trust. And this has been hindering the development of bilateral relations."

However, in recent years, both sides, backed by soaring bilateral trade, have sought to put aside the thorny issues and forge stronger economic links.

Atul Dalakoti, executive director of Federation of Indian Chambers of Commerce and Industry, said, "I think that has been a huge hurdle between these two countries over the past 20 years which I think now the time has come where we are ready to go, overcome this obstacle and move forward to very rapid pace to develop the India-China business relationship."

Economic cooperation has brought real benefits to both sides. Sino-Indian trade has soared from a few hundred million US dollars 10 years ago to five billion dollars today. Now, the two countries are exploring ways to double that figure.

Chinese analysts note that besides economic benefits, the two countries need each other politically.

Ma Jiali said, "India is developing its economy. It hopes to improve its ties with China to allay the pressure from its northern border. Besides, on many international issues, India is looking for China's support. Permanent membership of the UN Security Council is an example."

Stable ties are also key for China's own economic development, analysts say. Moreover, they note that China can benefit from India's influence in other third world countries.

For political or economic reasons, both China and India need each other more than ever if they are to increase their strength on the world stage. After all, a friend is always better than a foe, especially when it comes to neighbors. There may still be difficult issues, but the high-level exchanges of visits are signs that the two sides are engaging them in an active way.

(Xinhua News Agency June 24, 2003)