India, China Strengthen Relations

Neighbors Form 'Strategic Partnership' To Up Cooperation And Trade

(AP)  Indian and Chinese leaders Monday agreed to create a "strategic partnership for peace and prosperity" between the two Asian giants, sealing their agreement with a set of accords aimed at ending a long-standing border dispute and boosting economic ties and trade.

After a round of extended talks between visiting Chinese Premier Wen Jiabao and his Indian counterpart, Manmohan Singh, the two sides announced their commitment to develop bilateral ties, saying India-China relations have "acquired a global and strategic character."

"The leaders of the two countries have therefore agreed to establish an India-China strategic and cooperative partnership for peace and prosperity," said a joint statement signed by the two leaders.

The partnership would promote diplomatic relations, economic ties and contribute to the two nations "jointly addressing global challenges and threats."

While the statement gave few details, it signaled a significant shift in relations between the neighbors, who together have one-third of the world's population, moving away from decades of mutual distrust and suspicion.

The agreement "signifies an upgradation in ties," Shyam Saran, India's foreign secretary told reporters later Monday, adding "India and China do not look at each other as adversaries, but as partners" in development.

However, "the partnership is not a military alliance nor is it directed against a third country," he said.

The two countries also agreed to a set of military confidence-building steps along their disputed border, referred to as the Line of Actual Control, including avoiding large-scale military exercises in the area and greater contacts between military officials posted at the border.

Monday's talks also resulted in a raft of agreements for cooperation in such diverse areas as civil aviation, finance, education, science and technology, tourism and cultural exchanges.

"This is an important visit. We are working to promote friendly ties of cooperation between our two countries," Chinese Premier Wen Jiabao told reporters earlier Monday after a ceremonial welcome by Singh at New Delhi's pink sandstone presidential palace.

"India and China can together reshape the world order," Singh said.

Wen's four-day visit comes as the world's two most populous countries seek to improve ties strained by a historic rivalry and an old border dispute.

The two countries agreed on a framework to resolve their long-standing boundary dispute and outlined a set of broad parameters to demarcate the boundary through a "fair, reasonable and mutually acceptable solution," the joint statement said.

An 11-point roadmap to settle the border dispute was finalized Sunday during negotiations between India's National Security Adviser M.K. Narayanan and China's Vice Foreign Minister Dai Bingguo, who headed the Chinese delegation.