India’s relation with China has recently been improving with the High level contact between two countries. On a number of contentious issues joint working group has been set up. Now, both the neighbouring countries want to utilise the full potential of each other in every field like trade, defence, information technology, science and technology and nuclear field.

Recently after the visit of Indian Prime Minister Atal Bihari Vajpayee to China has brought a sea change in the policy of China towards Sikkim. Now, China no longer recognises Sikkim as independent country. Each one of them wants to solve the contentious issues through dialogue.

Now the U.S. factor has become important in chequered history of the India-China relationship; as discussions centre on changing global equations. The changing Indo-US relations at a time when American ties with China show strains are a cause of concern for China. There are frequent hints of Washington’s interest in building India as a counterweight to China or of using New Delhi as part of its policy to contain Bejing has brought a changed approach towards India in recent times.