On 20 October 1962, border conflicts led to a brief border war between the People`s Republic of China and India.  [Page required] The border fight led to a total defeat of India when the People`s Republic of China pushed the Indian armed forces 48 km from the plains of Assam in the northeast. It also held strategic points in the Aksai Chin and Demchok regions of Ladakh, before declaring a unilateral ceasefire on 21 November. She said she had withdrawn 20 km behind her controlled control line. India has contradicted this assertion. Warming relations were facilitated by Rajiv Gandhi`s visit to China in December 1988. The two sides issued a joint statement stressing the need to re-establish friendly relations on the basis of Panchsheel. India and the People`s Republic of China have agreed to reach a “fair and reasonable solution” while seeking a mutually acceptable solution to the border conflict. The communiqué also expressed China`s concern at the unrest of Tibetan separatists in India and reaffirmed that anti-Chinese political activities would not be tolerated by Tibetans living abroad. Rajiv Gandhi has signed bilateral agreements on scientific and technological cooperation, direct air links and cultural exchanges. The two sides also agreed to hold annual diplomatic consultations between foreign ministers, establish a joint economic and scientific cooperation committee and a joint working group on the border issue.
The latter group is expected to be led by India`s foreign minister and China`s deputy foreign minister. 4. However, payments for border trade between the People`s Republic of China and the Republic of India are made according to the usual practice.” The new Article VII came into force on July 1, 1957. I am pleased if you confirm, please, that the above things have properly set out the agreement between us. In recent discussions on the development of trade between the People`s Republic of China and India, it was agreed that the Government of the People`s Republic of China would encourage Chinese state-owned trading companies to establish and strengthen contacts with the State Trading Corporation of India to the extent that it is possible to do so with the State Trading Corporation of India for goods processed by the State Trading Corporation of India. I appreciate your thanks for explaining the agreement we have reached in the above. Bilateral trade between China and India amounted to $89.6 billion in 2017/18, with a trade deficit in China of $62.9 billion.  In 2017, the volume of bilateral trade between India and China is $84.5 billion.  This figure excludes bilateral trade between India and Hong Kong, which amounts to an additional $34 billion.  In August 1971, India signed the Treaty of Peace, Friendship and Cooperation with the Soviet Union.
In December 1971, the People`s Republic of China sided with Pakistan in its war with India. Although China strongly condemned India, it did not respond to its disguised threat to intervene on behalf of Pakistan. At that time, the People`s Republic of China had replaced the Republic of China at the United Nations, where its representatives denounced India as “the instrument of Soviet expansionism.” The People`s Republic of China continued an active propaganda campaign against India and provided ideological, financial and other assistance to dissident groups, particularly tribes in northeastern India. The People`s Republic of China has accused India of supporting the Khampa rebels in Tibet. Sri Lanka has acted as the chief negotiator for the withdrawal of Chinese troops from Indian territory. Both countries approved Colombo`s proposals.  In 2004, the two countries proposed to open the Nathula and Jelepla passports in Sikkim.