Where are India-China relations heading, given repeated Chinese claims in recent years to Indian territory and a noticeable hardening of its position beginning with Sun Yuxi’s statements on Arunachal Pradesh in 2006? The latest Chinese claim is on Sikkim’s finger tip region, which came up a few weeks before Indian External Affairs Minister Pranab Mukherjee’s four-day visit to China between 4 and 7 June 2008.

In a disturbing sign, the Chinese seem to have brought up Sikkim and not Arunachal Pradesh back to the table during the recent visit of Foreign Minister Pranab Mukherjee to China. The belief was that China had implicitly recognised Indian sovereignty over Sikkim in 2003, and as such there was no dispute on the matter with China. China’s recognition of Sikkim was interpreted as a quid pro quo for India’s recognition of total Chinese sovereignty over Tibet in 2003.

The Indian government’s response to the ongoing protests in Tibet has been to merely state its “distress” about the situation and reaffirm its position that Tibet is an “internal” affair of China. New Delhi has assured Beijing that its position on the Tibet issue is “clear and consistent” and that this “would not change in the future.” The Indian position is based on its traditional opposition to separatist movements and to foreign intervention in support of such movements.

A China Daily news item on November 22, 2007 states that both China and India will hold their first joint-army exercise in Yunan province of Southwest China in December. The piece titled “China-India Plan Joint Military Exercise” highlights the pledge of both the Chinese and Indian Prime Minister’s intent to push the Sino-Indian strategic partnership to a “new level”. Given the political value and media attention, the nature of this forthcoming exercise is seen as a “need” to fortify a sense of confidence between the Indian Army and the People’s Liberation Army (PLA).

Will China veto the India-specific waiver at the Nuclear Suppliers Group (NSG)? While various news sources have recently reported that China will not actively oppose the Indo-US deal at the NSG, its approach to the issue so far has generated doubts and debate.

The Chinese President Hu Jintao's visit to India signifies an important milestone in bilateral relations. The visit showed that there is a mutual willingness to keep the irritants aside and move forward. Both the powers of Asia have indeed placed greater importance on "stable relations" with each other in the coming days. This was clearly visible in Hu Jintao's "five-point proposals" for developing Sino-Indian relations. The rumours of India-China relations being affected by growing strategic relationship between India and US have been laid to rest for the moment.

As the India-China relationship continues to grow in the new Asian dynamics, Mr. Hu Jintao's maiden visit will indeed help to keep the momentum of improving ties going. The main thrust of both governments will be to establish greater political trust for future co-operation. Two-way trade between India and China is likely to touch US $24 billion this year. There are high expectations on both sides. Manmohan Singh and Hu know each other well. They have met and held talks five times during the last two years.