Chinese Premier Wen Jiabao displayed his signature smile as he and his visiting Indian counterpart Manmohan Singh signed a document to upgrade China-India relations in the Great Hall of the People in Beijing on January 14. Wen had good reason to be confident. Having just concluded a fruitful meeting in which the two leaders reached a consensus on a wide range of topics, they were now reaffirming in a written document the two countries' commitment to intensifying bilateral cooperation from a global perspective.

In the document, Wen and Singh resolved to promote the building of "a harmonious world of durable peace and common prosperity through developing the strategic and cooperative partnership for peace and prosperity between the two countries." Entitled "A Shared Vision for the 21st Century of the People's Republic of China and the Republic of India," the document covers both bilateral and multilateral issues, including the economy, politics, energy, nuclear power, climate change, disarmament, terrorism, religion, regional trade, defense and the border issue.

Chinese international affairs experts underlined the global significance of the relations between China and India, two nations that represent more than one third of humanity. The two countries will strengthen their bilateral cooperation and contribute to world development under the new roadmap, without allowing sensitive issues such as border demarcation to hinder their efforts, they said.

A pragmatic visit

Singh was in Beijing for a three-day visit on January 13-15, his first visit to China since taking office in 2004. Apart from meeting Wen, he held talks with President Hu Jintao and Chairman of the Standing Committee of China's National People's Congress Wu Bangguo.

Hu called on China and India to maintain high-level exchanges and deepen their strategic dialogue and cooperation to strengthen the political and social foundation for the development of their bilateral relations. He suggested that the two countries enhance their cooperation in the fields of trade, energy, science and technology and investment. He also said sensitive issues in China-India relations should be settled through dialogue in the spirit of mutual respect and equal consultation. The two nations should work closer to address global challenges and safeguard the interests of developing countries, he added.

Wu, for his part, encouraged inter-parliamentary cooperation between the two countries by extending a welcome to Indian parliament members to visit China.

Rong Ying, a foreign affairs expert specializing in South Asian studies at the China Institute of International Studies, called the visit a success. Although its achievements were still not substantial enough, they reflected the broadness of China-India cooperation as evidenced by the wide-ranging agreements reached by the two sides, he said.

"This pragmatic visit has charted the course for the future cooperation between China and India and will have profound implications for bilateral relations," Rong said.

After inking the joint document, Wen and Singh witnessed the signing of a number of memorandums of understanding between Chinese and Indian government agencies. The agreements covered the macroeconomy, the construction industry, railways, geological surveys, agriculture, banking, land resources, medicine, quality inspection and commerce.

Rong also pointed out that the international community is interested in how China and India, the two largest developing countries, view the international system. Fifty-four years ago, the two countries were cosponsors of the Five Principles of Peaceful Coexistence. The new joint document signed by Wen and Singh clarifies their common positions on the current international situation and conveys important signals to the international community, Rong said.

The agreement says, "The two sides reiterated that China-India friendship and common development will have a positive influence on the future of the international system." It also says the two countries believe that the Five Principles of Peaceful Coexistence, also known as Panchsheel, should continue to be the basic guiding principles for good relations between all countries in the new century.

In the document, China and India pledged to support and encourage the processes of regional integration, welcome the positive facets of economic globalization and face and meet the challenges of globalization. They vowed to establish an international energy order that is fair, equitable, secure and stable, and said they were committed to making joint efforts to diversify the global energy mix and enhance the share of clean and renewable energy. They also reiterated their readiness to join the international community's efforts to address climate change.

As both China and India rise to prominence in the international arena, their cooperation on a global level has increased and become an important part of their strategic partnership, said Hu Shisheng, an expert in South Asian affairs at the China Institutes of Contemporary International Relations (CICIR). This requires the two countries adopt an "international vision," he said.

Also, Western countries are exerting severe pressure on the two emerging powers to contain their rise, Hu said. For example, both China and India suffer mounting trade protectionism. Strengthened cooperation will help them better address the pressure from the West, he said.

The agreement also says the two sides remain firmly committed to resolving their outstanding differences, including the boundary question, through peaceful negotiations. The 2,000-km border between China and India has never been formally demarcated. Border dispute led to a large-scale military conflict in 1962 and has long been a sensitive issue in the two countries' relations. The document calls on the special representatives from both nations to shape an agreed framework of settlement at an early date.

"The document was a new landmark in the development of Sino-Indian relations," said Chinese Foreign Ministry Spokesman Qin Gang at a news briefing. "It marked another big step forward in the two countries' relationship."

Trade matters

At the China-India Economic, Trade and Investment Cooperation Summit held in Beijing during Singh's visit, the Indian leader put forward a three-pronged strategy for the chambers of industry and commerce of both countries. He called on them to jointly work out a strategic plan for the future, develop profitable business models that factor in their complimentary and competitive strengths and the special needs of the large markets of both countries, and acquire insight into each other's markets, business customs and management styles.

Rong applauded Singh's proposals, saying that they would help make the two countries' trade relations more balanced.

China-India trade has enjoyed rapid development in recent years. Their two-way trade volume soared about five times from 2003, when former Indian Prime Minister Atal Bihari Vajpayee visited China, to 2007. In 2006, it reached $24.8 billion, with a more than $4 billion trade surplus for China, according to Chinese statistics. During Singh's visit, the two countries agreed to start discussions on a regional trading arrangement at an appropriate time and raise the trade target set for 2010 from $40 billion to $60 billion, Qin said.