Refuting China's claim over Arunachal Pradesh, India's External Affairs Minister Pranab Mukherjee firmly reiterated that "The whole of Arunachal Pradesh is an integral part of India." Coming as it did days before the Chinese President's four-day visit to India from November 20, 2006, the statement made by China's Ambassador to India, Sun Yuxi, that "In our position, the whole of the state of Arunachal Pradesh is Chinese territory. And Tawang is only one of the places in it. We are claiming all of that. That is our position," is unfortunate.

Last week witnessed a major development on the India-China energy front with the joint bidding plan for Petro-Canada's Syrian assets by India’s Oil and Natural Gas Corporation (ONGC) and the China National Petroleum Corporation (CNPC). In September this year Petro-Canada expressed interest to sell off its 38 per cent stake in the Al Furat field, which produces about 70,000 barrels of oil daily accounting for 50 per cent of Syria's total output. This is the first time that Indian and Chinese firms have joined together to secure stakes in an overseas energy facility.

Chinese Premier Wen Jiabao's visit to India would be noted for three landmark steps: The establishment of a strategic and cooperative partnership, the agreement on the political parameters and guidelines for settling the territorial/boundary issue, and the decision on a comprehensive economic partnership and regional trading arrangement.

Globalisation and regionalisation of trade and investment are drawing in all countries and becoming an irresistible trend in Asia. China is at the centre of this new structure. Since 1992 in particular, as investments in labour-intensive manufacturing from Taiwan, Hong Kong, the US, Japan, Europe and Southeast Asia have moved in a rising wave though the open Chinese door, steeply raising its trade profile.

Chinese Prime Minister Wen Jiabao's visit to New Delhi on April 11-12 comes soon after that of US Secretary of State Condoleezza Rice (March 16) and will be followed by Japanese Prime Minister Junichiro Koizumi's visit in end-April.

While this scheduling may be a matter of coincidence, the outcome of the Wen visit and the manner in which it impacts the Sino-Indian relationship has the potential to significantly shape the emerging Asian strategic systemic and related security landscape.