Normalisation of relations between India and China:
(i) After the end of the War between India and China in 1962. The both countries had stained relations upto 1975. The both countries resumed diplomatic relations in 1976 by exchanging ambassadors.
(ii) The efforts of normalisation of SinoIndian relations received a boost when Prime Minister Rajiv Gandhi paid a successful five day visit to China in 1988. The two countries pledged to settle the border dispute through dialogue.
(iii) Several high level visits followed including visit by Ex-Prime Minister Atal Bihari Vajpayee in 2003.
(iv) The two countries agreed to keep the border dispute apart, and develop friendly relations in other fields. Until the border dispute is resolved, both countries agreed to maintain peace and tranquillity on the Line of Actual Control (LAC).
(v) Nevertheless, there was suddenly a brief setback in the mutual ties of the two after the nuclear explosions by India during 1998. These were followed by sharp Chinese reaction and its leading role in getting the resolutions condemning the tests in UN and similar for a, passed. These tests by India were seen as neutralising Chinese prominence in the region.
(vi) One could see a clear shift in the Chinese attitude towards India. The fact that erstwhile USSR had mended fences with China, there were no more apprehensions from the South. Moreover, China's post-1979 economic transformation demanded big markets for its massive production under economic liberalisation.
(vii) President Jiang Zemin's visit to India in 1996 witnessed a major consolidation of this progress. This was the first ever visit of China's head of State to India. China's withdrawal of support to Naga and Mizo rebels; meaningful silence on the status of Sikkim (China considered Sikkim's status as that of an independent state) and a neutral stand on Kashmir issue could be seen as a positive shift in Chinese attitude towards India.
(viii) But the Chinese posture of neutrality during the Indo-Pak military showdown in Kashmir, Kargil sector in 1999 exhibited China's inclination to toe a softer and friendly line with India. In fact, Chinese refusal to interfere in the conflict forced Pakistan for cessation of hostilities with India.
(ix) However, Ex-Prime Minister Atal Behari Vajpayee's 2003 visit to China is a renewed effort in the promotion of close and cordial ties between the two neighbours. The border agreement has recognized the Nathula Pass in Sikkim as a border pass, implying that China no longer considers Sikkim as an independent state.
(x) Another positive breakthrough was the Joint Declaration that underlined the need to explore a framework of a boundary settlement at the political level of bilateral relations. This is an acknowledgement that the key issue in resolving the dispute is political. This is seen as Beijing's readiness to give up its policy of delaying dialogue.
(xi) India's National Security Advisor and Chinese Vice Minister have been appointed for holding the tasks.
(xii) The developments at the diplomatic and political levels have been supplemented by fresh initiatives at the economic level to strengthen bilateral relations. The border trade between India and China has crossed $ 10 billion quickly.