After Bharatiya Janata Party prime ministerial candidate Narendra Modi won India's national elections and formed a cabinet, there was no shortage of media commentary about China-India relations allegedly reaching a turning point or entering an icy period. Yet objectively speaking by observing interactions between the two countries after Modi took office, it is not hard to see that both sides, despite adjusting their foreign strategies, have tried to vigorously expand cooperation and properly handle differences. These efforts have gradually reduced negativity and pooled positive energy for developing bilateral ties.

China and India share a basic consensus that their relations go beyond the bilateral dimension and must assume a global strategic significance. The foundation of that consensus lies in their common aspirations for a multi-polar global landscape and democracy in international relations as well as their urgent desire to cultivate a stable surrounding environment while seeking economic and social development. This consensus also reveals that the two countries have complementary advantages in terms of economic and social development as well as resources. 

China and India both acknowledge that their development goals are connected and compatible. They approve of a development partnership forming the essence of their bilateral strategic cooperative partnership. 

To this end, China has been consistent and active in upholding a friendly policy towards India in recent years. In 2006, developing a long-term strategic partnership with India became an established policy of the Chinese government. This was a strategic decision rather than a temporary expedient. In 2010, China upheld that nothing could shake its firm conviction of pursuing good-neighborly relations and friendship with India. In 2013, China highlighted that development by both sides could provide each other with opportunities. In 2014, China pointed out that it was a shared historical mission to advance China-India relations and that China will always prioritize ties with India in its diplomacy. All of these policies and statements show that China is determined to actively promote friendly relations with India. 

While China set the tone for developing relations with India, India has also repeatedly said it will prioritize developing ties with China. Frequent high-level interactions between the two countries, especially Chinese President Xi Jinping's visit to India in September last year and Modi's planned visit to China, will undoubtedly play a major role in maintaining the positive momentum of bilateral relations.

Deepening economic and trade cooperation has become an important way for China and India to build a partnership for development. China is committed to increasing investment and enhancing bilateral trade with India, while India expects to welcome Chinese investment while deepening bilateral economic and trade cooperation. India has become one of the founding members of China's proposed Asian Infrastructure Investment Bank. 

In 2014, three years of decline were reversed when bilateral trade amounted to US$70.6 billion. China and India also signed a memorandum of cooperation for industrial parks and a five-year development plan for economic cooperation. More importantly, China is devoted to incorporating India into the regional cooperation framework for economic and social development, promoting the establishment of an economic corridor along Bangladesh, China, India and Myanmar, and inviting India to join in construction of the 21st Century Maritime Silk Road. 

A multi-channel, multi-level negotiation and dialogue mechanism has become an important means for handling differences and enhancing mutual trust. China and India have set up mechanisms that include strategic economic dialogue, defense and security consultation, strategic dialogue, financial dialogue and talks between special representatives on the boundary issue. Since 2014 these mechanisms have been working in an orderly way and playing an active role in enhancing bilateral communication and strategic mutual trust. Strategic economic dialogue covers the most areas and promotes pragmatic cooperation between the two countries. 

China and India have made a breakthrough in establishing a mechanism for border management and control. Both sides have agreed on consensus as the principle to deal with the boundary issue. They have set up and promoted two important mechanisms for negotiations and signed three agreements on border management and control. The two sides are also discussing a new set of code of conduct on boundary management. It is fair to say that consensus and agreements have basically provided support in charting a course toward a solution of the boundary issue. 

However, we cannot deny that even though both sides are eager to solve the boundary issue, deepening border-related mechanisms do not in and of themselves reduce the difficulties of achieving that goal. More effort, patience and wisdom are ultimately required to solve the boundary issue. 

China and India have both converging and competing interests. China vigorously promotes its One Belt One Road initiative while India has upgraded its Look East Policy into the Act East Policy. The Act East Policy, an important part of India's Asia-Pacific strategy, has multi-dimensional aspirations in politics, economy and security. 

It is inevitable that China and India will have overlapping interests while implementing the One Belt One Road initiative and the Act East Policy. This might be the main reason for the Modi government not clearly responding to China's invitation to join in on construction of the 21st Century Maritime Silk Road. 

The nature of major country relations is cooperation and competition, which is also the norm for future China-India relations. Against the backdrop of China upholding an active and pragmatic policy towards India and India following a two-track policy of strategic balance for economic cooperation, the theme of China-India relations will surely be actively promoting cooperation. How to properly handle divergences remains the key to bilateral ties for now. Divergences, in contrast to cooperation, are often magnified maliciously and can negatively impact the images of both countries.

By Wu Zhaoli, assistant researcher, National Institute of International Strategy at Chinese Academy of Social Sciences