Cooperation and Competition: China-India Relations Inch Forward

　　Abstract: China-India Relations went forward slowly in 2012. Leaders of the two countries have maintained regular contacts and have met frequently during international gatherings. The political trust between the two counties, however, remains low. Against the background of global and domestic economic situation, the two way trade declined, and the scale of FDI was small. The two countries have announced 2011 as the “Year of Exchanges” and 2012 as the “Year of Friendship and Cooperation”, and Youth exchanges have been encouraged. China has committed to push the military exchange with India, as a result, the two sides military exchange has increased. India’s involvement in the South China Sea dispute complicated China-India relations.

　　Key Words: China-India Relations; Trade; Investment; Military Exchanges; Culture Exchanges