The contentious issues between China and India stem from historical conflicts. The border conflict of 1962 arose over competing territorial claims principally in Arunachal Pradesh and in the Aksai Chin region of Ladakh. Differences also arose from the Chinese takeover of Tibet in 1950 and the final settlement of the Sino-Indian border.

China's strategic ties with India's neighbours remain concerning. China was seen as contributing to the build-up of Pakistan's nuclear programme. Additionally, China's military relations with Bangladesh and Myanmar were viewed as hostile to Indian interests in South Asia.

For greater cooperation, both countries should continue diplomatic talks to resolve the boundary question without interruption. Increasing military-to-military cooperation and enhancing transportation and communication links can build trust. Both nations have already agreed to cooperate in areas that could create conflict, such as bidding for energy deals abroad.

Economic engagement offers a positive path forward. Bilateral trade has grown significantly, and both countries have adopted similar policies in international economic institutions like the World Trade Organisation. Cultural exchanges and cooperation in science and technology should be further promoted.

A pragmatic approach is essential. After the change in China's political leadership in the late 1970s, China became prepared to put off contentious issues while improving relations. Both governments should continue measures to maintain 'peace and tranquility' on the border, as initiated after Rajiv Gandhi's visit to China in 1988.