India, China Take Steps to Ease Disputes, Enhance Trade

The top leaders of India and China have agreed to set up a consultation mechanism to work toward resolving border disputes, to resume defense talks, and to improve trade relations, Reuters reports:

India and China suspended military ties last year after Beijing denied a visa to an Indian army general from disputed Kashmir. India also has broad suspicions about China’s close relationship with Pakistan.

But Menon described a 50-minute meeting between Indian Prime Minister Manmohan Singh and Chinese President Hu Jintao ahead of a summit of emerging powers in the southern Chinese resort of Sanya as “very productive, warm, friendly”.

The two sides reached in principle agreement on establishing a “working mechanism for consultation and coordination on border affairs,” he added.

“This will handle important border affairs relating to maintaining peace and tranquility,” Menon said, though he added that “in practice it is one of the most peaceful borders that we have.”

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