Hand in hand: The Chinese and Indian armies kicked off their first joint antiterrorism training exercise in Yunnan Province on Friday.
Hand in hand: The Chinese and Indian armies kicked off their first joint antiterrorism training exercise in Yunnan Province on Friday.
Xinhua/Reuters
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  • Hand in hand: The Chinese and Indian armies kicked off their first joint antiterrorism training exercise in Yunnan Province on Friday.
  • Yunnan: A Chinese soldier clears a fire obstacle during a China-India joint exercise. About 100 soldiers from each country were participating in the nine-day drill.
  • Training together: Chinese soldiers (l.), and Indian soldiers (r.), take part in the opening ceremony of the China-India Joint Anti-Terrorism Training code, 'Hand-in-Hand 2007.'
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Sino-Indian army exercises bring two Asian powers closer

Forty-five years after a border war, the two nations begin to collaborate on security.

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Reporter Mark Sappenfield discusses the unprecedented military exercise between the once rivals.

As evidence of how economics has already suppressed some grievances, China agreed to reopen the strategic Nathu La pass to border trade last year – a move that effectively accepted the state of Sikkim as a part of India.

In closer Sino-Indian ties, Sen He, managing director of Sany Heavy Industry, sees only opportunity. For the past three years, Sany has been exporting machines such as conveyer equipment to Indian firms. After selling more than 700 machines, the company decided to invest $60 million to build a factory near Pune. The operation, scheduled for completion next year, will be the first Chinese-owned major manufacturing plant in India.

"India's economy is booming … and the construction market is flourishing," says Mr. Sen. "There is a big demand for our product."

Meanwhile, major Indian corporations such as Ranbaxy pharmaceuticals and Videocon electronics have opened operations in China.

Cooperation and competition

The business deals are counterpoints to the economic competition likely to grow between the two Asian powers – most notably over natural resources. "There will be more instances of cooperating [than competing]," says Jabin Jacob, an analyst at the Institute of Peace and Conflict Studies, a security think tank in Delhi.

India and China "are beginning to understand they can compete and cooperate at the same time," he adds.

It is a lesson the military is learning, too – yet with a clear sense of caution. Much about China still worries India. China recently invested huge amounts of money in its military. India responded by increasing its efforts to build longer-range missiles. "That is China-centric," says Mr. Bedi of Jane's.

Any attempt to match Chinese spending "would be a disaster," adds General Nambiar. "But we must be able to maintain a capability that is a deterrent to China."

To that end, India is building 72 roads into the remote border area with China and moving more of its airpower to a nearby state – hoping to counter similar and more robust moves by China on the other side of the border. India has also participated in a massive five-nation naval exercise in the Malacca Strait – an exercise that experts say was intended to send a "hands off" message to China.

China's continuing support of Pakistan – and its reported role in helping Pakistan build a nuclear bomb – remains a point of contention, as well. For these reasons, experts say, there is a limit to the possibilities for Sino-Indian military cooperation. But as memories of the 1962 war dissipate, a new openness is emerging. Says Nambiar: "We've come a long way since then."

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