On November 20, 2006, Chinese President Hu Jintao arrived in India for a state visit. Hu's visit will give impetus to the development of economic and trade relations as well as a strategic partnership between the two countries.

The relationship between China and India has grown stronger and stronger in recent years. Last year Chinese and Indian leaders agreed to work towards establishing a peace and prosperity oriented strategic and cooperative partnership. However, differences of opinion between the two countries on major strategic issues are well documented. There is a longstanding border dispute between the two countries and there are other issues of contention; China's relationship with other South Asian nations, China's position as a market economy, nuclear cooperation and United Nations reform.

These differences need not prove fatal to the relationship. Neighboring countries and emerging powers, they are both going through a crucial period of domestic economic and social restructuring; both are being exposed to dramatic changes in the regional and international strategic situation; both have similar strategic goals. Such similarities would suggest to some that the two countries have a common destiny. Therefore, building a strategic cooperative partnership is of great important to the development and rise of the two countries.

However, the establishment and consolidation of a strategic partnership cannot be accomplished overnight. To increase mutual trust and resolve differences, the two sides need firstly to increase the number and productivity of bilateral high-level visits. Hu Jintao's visit to India is the first visit by a Chinese Head of State in 10 years, as well as the first of a Chinese leader since the establishment of a partnership between the two countries. It is important that such visits become a regular occurrence. In the last two years, both the Chinese President and Prime Minister have visited India. This demonstrates that Chinese leaders attach great importance to developing strategic communication with India.

Economic and trade development is another channel by which trust can be gained and differences reduced. During the visit, the two countries signed a series of trade and investment agreements. Chinese and Indian leaders also discussed the possibility of a free trade zone. Both countries are working hard to expand complementary trade and circumvent direct competition. In particular, the leaders looked for more ways to promote cooperation in the fields IT, iron and steel production, automobile development, textile manufacturing and industrial machinery and equipment. China and India currently compete fiercely in the international textile market. In recent years Chinese enterprises have actually been importing raw textile materials from India and focused more on making and exporting whole garments. Such complementary arrangements will create even more opportunities to turn competition into industrial cooperation, and this cooperation will greatly improve the trade structure of the two countries, diversify bilateral trade, and ensure sustainable trade development.

In addition to increasing the frequency of high-level visits, the governments of the two countries should also make efforts to promote other forms of personnel exchange as a form of grass roots diplomacy. Currently very few people journey between the two countries. For example in 2005, only 340,000 Indian people visited China, and 50,000 Chinese people went to India. This is in sharp contrast to the 4 million people that travel between South Korea and China every year. Greater interaction between the people of China and India is perhaps the best to ensure the development of a relationship at a state level.

The year 2006 is the year of Sino-Indian friendship. Hu Jintao's visit to India is an important event in the year of Sino-Indian friendship and will open a new chapter in economic, trade and political relations.

By People's Daily Online; The author, Hu Shisheng, is a Director and Deputy Researcher at the South Asian Studies Department of the China Institute of Contemporary International Relations.