India, China Strengthen Relations

Neighbors Form 'Strategic Partnership' To Up Cooperation And Trade

(AP) 
India and China share a mountainous, 2,500-mile border, parts of which are not demarcated. The two sides went to war over the border disagreement in 1962.

The roadmap states that the countries would take into consideration historical factors, geographical features, people living in the area, security and whether the area was currently under Indian or Chinese control when marking the border.

Meanwhile, both sides have in recent years forged closer economic ties, hoping improved trade relations will also help expedite the resolution of political differences.

On Monday, the two leaders agreed to boost bilateral trade to $20 billion by 2008. Last year, trade totaled $13.6 billion, with India recording a trade surplus of $1.75 billion, according to data available with India's trade ministry.

Wen told business leaders later Monday that India and China should work for increased cooperation at multilateral forums such the World Trade Organization. Cooperation in these areas will be "to the benefit of our two countries and create a win-win situation for both," Wen said.

China is keen to develop a free trade area between the two countries. Their combined populations total 2 billion, which would make it the largest free trade area in the world. During their talks, Wen and Singh agreed Monday to set up a panel of experts to study the feasibility and benefits that would accrue from establishing such a trade area.

On Sunday, Wen visited the southern city of Bangalore, India's technology hub, and said the two nations should put aside their rivalry and pool their resources.

He said India and China can together lead the world in information technology, heralding a new "Asian century."

Saran said the issue of Tibet and the role of the Tibetan spiritual leader, the Dalai Lama, who lives in exile in India, did not figure in Monday's talks.

India allowed the Dalai Lama to set up a government in exile in the northern Himalayan town of Dharmsala after he fled Tibet in 1959 following an aborted uprising against Chinese rule in the territory.

In New Delhi, analysts said the strategic partnership between the two emerging giants would affect the balance of power both globally and in the region.

"It is an important development. It goes beyond the immediate bilateral relationship and has wider global and regional implications," said Sujit Dutta, a China expert at the state-run Institute for Defense Studies and Analyses.