Abstract
The bilateral relations of India and China deteriorated for many years after the border clash of 1962. From the 1990s to the present day, relations have improved gradually between two countries. An important turning point was the agreement for border peace and tranquility concluded in 1993, the essence of which included efforts to boost bilateral economic relations while shelving the border issue. Today, China stands as one of the top three major trading partners of India's bilateral trade. The two countries cooperate in the fields of global warming, formation of multi-lateral world system through SCO and BRICS summit, while confrontation persists in terms of their border issue: the Indian Ocean. Moreover, India casts a wary eye over China's policies in relation to South Asian countries. Today, India pursues its China policy with both engagement and hedging. Bilateral relations could be characterized as ambivalent, particularly from the Indian side and more or less from the Chinese side as well.
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